SCHLUMBERGER LIMITED/NV [SLB] Filings

10-Q 1 slb-20230930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file No.: 1-4601

Schlumberger N.V. (Schlumberger Limited)

(Exact name of registrant as specified in its charter)


Curaçao		52-0684746
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

42 rue Saint-Dominique
Paris, France		75007

5599 San Felipe
Houston, Texas, United States of America		77056

62 Buckingham Gate
London, United Kingdom		SW1E 6AJ

Parkstraat 83
The Hague, The Netherlands		2514 JG
(Addresses of principal executive offices)		(Zip Codes)

Registrant’s telephone number in the United States, including area code, is: (713) 513-2000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
common stock, par value $0.01 per share	SLB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class

Outstanding at September 30, 2023

COMMON STOCK, $0.01 PAR VALUE PER SHARE

1,423,420,641
 

SCHLUMBERGER LIMITED

Third Quarter 2023 Form 10-Q

Table of Contents


		Page
PART I	Financial Information

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21

Item 4.	Controls and Procedures	21

PART II	Other Information

Item 1.	Legal Proceedings	22

Item 1A.	Risk Factors	22

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22

Item 3.	Defaults Upon Senior Securities	22

Item 4.	Mine Safety Disclosures	22

Item 5.	Other Information	22

Item 6.	Exhibits	23

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)


(Stated in millions, except per share amounts)

	Third Quarter				Nine Months
	2023		2022		2023		2022
Revenue
Services	$	5,719	$	5,153	$	16,616	$	14,109
Product sales		2,591		2,324		7,529		6,104
Total Revenue		8,310		7,477		24,145		20,213
Interest & other income		73		75		247		436
Expenses
Cost of services		4,360		3,975		12,777		11,082
Cost of sales		2,232		2,067		6,601		5,541
Research & engineering		186		160		524		456
General & administrative		81		94		268		277
Interest		129		122		373		369
Income before taxes		1,395		1,134		3,849		2,924
Tax expense		259		215		722		514
Net income		1,136		919		3,127		2,410
Net income attributable to noncontrolling interests		13		12		36		33
Net income attributable to SLB	$	1,123	$	907	$	3,091	$	2,377

Basic income per share of SLB	$	0.79	$	0.64	$	2.17	$	1.68

Diluted income per share of SLB	$	0.78	$	0.63	$	2.14	$	1.65

Average shares outstanding:
Basic		1,424		1,418		1,424		1,414
Assuming dilution		1,442		1,439		1,442		1,436

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)


(Stated in millions)

	Third Quarter						Nine Months
	2023			2022			2023			2022
Net income	$	1,136		$	919		$	3,127		$	2,410
Currency translation adjustments
Unrealized net change arising during the period		(46	)		(18	)		(123	)		92
Cash flow hedges
Net gain (loss) on cash flow hedges		24			45			96			(53	)
Reclassification to net income of net realized (gain) loss		(2	)		30			(16	)		103
Pension and other postretirement benefit plans
Amortization to net income of net actuarial (gain) loss		(2	)		16			(6	)		46
Amortization to net income of net prior service credit		(6	)		(6	)		(17	)		(17	)
Income taxes on pension and other postretirement benefit plans		2			1			5			3
Comprehensive income		1,106			987			3,066			2,584
Comprehensive income attributable to noncontrolling interests		13			12			36			33
Comprehensive income attributable to SLB	$	1,093		$	975		$	3,030		$	2,551

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET


(Stated in millions)

	Sept. 30,
	2023			Dec. 31,
	(Unaudited)			2022
ASSETS
Current Assets
Cash	$	2,488		$	1,655
Short-term investments		1,247			1,239
Receivables less allowance for doubtful accounts (2023 - $347; 2022 - $340)		8,049			7,032
Inventories		4,305			3,999
Other current assets		949			1,078
		17,038			15,003
Investments in Affiliated Companies		1,622			1,581
Fixed Assets less accumulated depreciation		6,875			6,607
Goodwill		13,111			12,982
Intangible Assets		2,912			2,992
Other Assets		4,255			3,970
	$	45,813		$	43,135
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	9,222		$	9,121
Estimated liability for taxes on income		935			1,002
Short-term borrowings and current portion of long-term debt		1,998			1,632
Dividends payable		373			263
		12,528			12,018
Long-term Debt		11,147			10,594
Postretirement Benefits		166			165
Deferred Taxes		157			61
Other Liabilities		2,108			2,308
		26,106			25,146
Equity
Common stock		11,182			11,837
Treasury stock		(621	)		(1,016	)
Retained earnings		12,742			10,719
Accumulated other comprehensive loss		(3,917	)		(3,855	)
SLB stockholders’ equity		19,386			17,685
Noncontrolling interests		321			304
		19,707			17,989
	$	45,813		$	43,135

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)


(Stated in millions)

	Nine Months Ended September 30,
	2023			2022
Cash flows from operating activities:
Net income	$	3,127		$	2,410
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of Liberty shares		(36	)		(242	)
Gain on sale of real estate		-			(43	)
Depreciation and amortization (1)		1,703			1,598
Deferred taxes		94			3
Stock-based compensation expense		218			236
Earnings of equity method investments, less dividends received		(120	)		(52	)
Change in assets and liabilities: (2)
Increase in receivables		(1,003	)		(1,302	)
Increase in inventories		(334	)		(849	)
Decrease (increase) in other current assets		107			(144	)
Decrease (increase) in other assets		2			(40	)
(Decrease) increase in accounts payable and accrued liabilities		(10	)		475
(Decrease) increase in estimated liability for taxes on income		(113	)		6
Decrease in other liabilities		(65	)		-
Other		45			50
NET CASH PROVIDED BY OPERATING ACTIVITIES		3,615			2,106
Cash flows from investing activities:
Capital expenditures		(1,345	)		(1,046	)
APS investments		(391	)		(420	)
Exploration data costs capitalized		(121	)		(77	)
Business acquisitions and investments, net of cash acquired		(280	)		(45	)
Proceeds from sale of Liberty shares		137			513
Proceeds from sale of real estate		-			120
Purchase of short-term investments, net		(12	)		(55	)
Other		(251	)		(106	)
NET CASH USED IN INVESTING ACTIVITIES		(2,263	)		(1,116	)
Cash flows from financing activities:
Dividends paid		(961	)		(600	)
Proceeds from employee stock purchase plan		191			142
Proceeds from exercise of stock options		85			29
Stock repurchase program		(594	)		-
Proceeds from issuance of long-term debt		992			-
Net decrease in short-term borrowings		(43	)		(13	)
Taxes paid on net settled stock-based compensation awards		(162	)		(92	)
Other		(11	)		(4	)
NET CASH USED IN FINANCING ACTIVITIES		(503	)		(538	)
Net increase in cash before translation effect		849			452
Translation effect on cash		(16	)		(29	)
Cash, beginning of period		1,655			1,757
Cash, end of period	$	2,488		$	2,180

(1)

Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments.

(2)

Net of the effect of business acquisitions.

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)


	(Stated in millions, except per share amounts)

				Accumulated
				Other
	Common Stock		Retained	Comprehensive	Noncontrolling
January 1, 2023 – September 30, 2023	Issued	In Treasury	Earnings	Loss	Interests	Total
Balance, January 1, 2023	$11,837	$(1,016)	$10,719	$(3,855)	$304	$17,989
Net income			3,091		36	3,127
Currency translation adjustments				(123)		(123)
Changes in fair value of cash flow hedges				80		80
Pension and other postretirement benefit plans				(18)		(18)
Shares sold to optionees, less shares exchanged	(53)	138				85
Vesting of restricted stock, net of taxes withheld	(657)	495				(162)
Employee stock purchase plan	(162)	352				190
Stock repurchase program		(594)				(594)
Stock-based compensation expense	218					218
Dividends declared ($0.75 per share)			(1,068)			(1,068)
Dividends paid to noncontrolling interests					(20)	(20)
Other	(1)	4		(1)	1	3
Balance, September 30, 2023	$11,182	$(621)	$12,742	$(3,917)	$321	$19,707



				Accumulated
				Other
	Common Stock		Retained	Comprehensive	Noncontrolling
January 1, 2022 – September 30, 2022	Issued	In Treasury	Earnings	Loss	Interests	Total
Balance, January 1, 2022	$12,608	$(2,233)	$8,199	$(3,570)	$282	$15,286
Net income			2,377		33	2,410
Currency translation adjustments				92		92
Changes in fair value of cash flow hedges				50		50
Pension and other postretirement benefit plans				32		32
Shares sold to optionees, less shares exchanged	(24)	53				29
Vesting of restricted stock, net of taxes withheld	(730)	638				(92)
Employee stock purchase plan	(222)	364

SCHLUMBERGER LIMITED/NV [SLB] Filings
10-Q	[2023-10-25]
10-Q	[2023-07-26]
10-Q	[2023-04-26]
10-K	[2023-01-25]
10-Q	[2022-10-26]
10-Q	[2022-07-27]
10-Q	[2022-04-27]
10-K	[2022-01-26]
10-Q	[2021-10-27]
10-Q	[2021-07-28]
10-Q	[2021-04-28]
10-K	[2021-01-27]
10-Q	[2020-10-21]
10-Q	[2020-07-29]
10-Q	[2020-04-22]
10-K	[2020-01-22]
10-Q	[2019-10-23]
10-Q	[2019-07-24]
10-Q	[2019-04-24]
10-K	[2019-01-23]
10-Q	[2018-10-24]
10-Q	[2018-07-25]
10-Q	[2018-04-25]
10-K	[2018-01-24]
10-Q	[2017-10-25]
10-Q	[2017-07-26]
10-Q	[2017-04-26]
10-K	[2017-01-25]
10-Q	[2016-10-26]
10-Q	[2016-07-27]
10-Q	[2016-04-27]
10-K	[2016-01-27]
10-Q	[2015-10-21]
10-Q	[2015-07-22]
10-Q	[2015-04-22]
10-K	[2015-01-29]
10-Q	[2014-10-22]
10-Q	[2014-07-23]
10-Q	[2014-04-23]
10-K	[2014-01-31]
10-Q	[2013-10-23]
10-Q	[2013-07-24]
10-Q	[2013-04-24]
10-K	[2013-01-31]
10-Q	[2012-10-24]
10-Q	[2012-07-25]
10-Q	[2012-04-25]
10-K	[2012-02-01]