- Revenue of $7.5 billion increased 10% sequentially and 28% year
on year
- International revenue of $5.9 billion increased 13%
sequentially and 26% year on year
- North America revenue of $1.5 billion was flat sequentially and
increased 37% year on year
- GAAP EPS of $0.63 decreased 6% sequentially and increased 62%
year on year
- EPS, excluding charges and credits, of $0.63 increased 26%
sequentially and 75% year on year
- Cash flow from operations was $1.6 billion and free cash flow
was $1.1 billion
- Board approved quarterly cash dividend of $0.175 per share
Schlumberger Limited (NYSE: SLB) today announced results for the
third-quarter 2022.
Third-Quarter Results
(Stated in millions, except per
share amounts)
Three Months Ended
Change
Sept. 30, 2022
Jun. 30, 2022
Sept. 30, 2021
Sequential
Year-on-year
Revenue
$7,477
$6,773
$5,847
10%
28%
Income before taxes - GAAP basis
$1,134
$1,152
$691
-2%
64%
Net income - GAAP basis
$907
$959
$550
-5%
65%
Diluted EPS - GAAP basis
$0.63
$0.67
$0.39
-6%
62%
Adjusted EBITDA*
$1,756
$1,530
$1,296
15%
35%
Adjusted EBITDA margin*
23.5%
22.6%
22.2%
91 bps
133 bps
Pretax segment operating income*
$1,400
$1,159
$908
21%
54%
Pretax segment operating margin*
18.7%
17.1%
15.5%
161 bps
320 bps
Net income, excluding charges &
credits*
$907
$715
$514
27%
77%
Diluted EPS, excluding charges &
credits*
$0.63
$0.50
$0.36
26%
75%
Revenue by Geography
International
$5,881
$5,188
$4,675
13%
26%
North America
1,543
1,537
1,129
0%
37%
Other
53
48
43
n/m
n/m
$7,477
$6,773
$5,847
10%
28%
*These are non-GAAP financial measures.
See sections titled "Charges & Credits", "Divisions", and
"Supplemental Information" for details.
n/m = not meaningful
(Stated in millions)
Three Months Ended Change
Sept. 30,2022 Jun. 30,2022 Sept. 30,2021
Sequential
Year-on-year
Revenue by Division Digital & Integration
$900
$955
$812
-6%
11%
Reservoir Performance
1,456
1,333
1,192
9%
22%
Well Construction
3,084
2,686
2,273
15%
36%
Production Systems
2,150
1,893
1,674
14%
28%
Other
(113)
(94)
(104)
n/m
n/m
$7,477
$6,773
$5,847
10%
28%
Pretax Operating Income by Division
Digital & Integration
$305
$379
$284
-20%
7%
Reservoir Performance
244
195
190
25%
28%
Well Construction
664
470
345
41%
92%
Production Systems
224
171
166
31%
36%
Other
(37)
(56)
(77)
n/m
n/m
$1,400
$1,159
$908
21%
54%
Pretax Operating Margin by Division
Digital & Integration
33.9%
39.7%
35.0%
-586 bps
-119 bps
Reservoir Performance
16.7%
14.6%
16.0%
209 bps
77 bps
Well Construction
21.5%
17.5%
15.2%
403 bps
635 bps
Production Systems
10.4%
9.0%
9.9%
142 bps
55 bps
Other
n/m
n/m
n/m
n/m
n/m
18.7%
17.1%
15.5%
161 bps
320 bps
n/m = not meaningful
Schlumberger CEO Olivier Le Peuch commented, “The second half of
the year is off to a great start with strong third-quarter results
that reflect the acceleration of international momentum and solid
execution across our Divisions and areas. Sequentially, we
delivered another quarter of double-digit revenue growth and margin
expansion, as the pace of growth in our international business
stepped up significantly, complementing already robust levels of
activity in North America.
“On a companywide basis, sequential revenue grew 10%, by more
than $700 million; EPS—excluding charges and credits—increased 26%;
pretax segment operating margin expanded 161 basis points (bps) to
reach 18.7%; and free cash flow was $1.1 billion. Both
EPS—excluding charges and credits—and pretax segment operating
margin represent their highest levels since 2015, as we continue to
execute on our returns-focused strategy with much success.
“Year-over-year comparisons were exceptional with revenue
growing by 28%; EPS—excluding charges and credits—increasing 75%;
and pretax segment operating margin expanding 320 bps.”
Revenue growth was led by Well Construction and Production
Systems as global activity strengthened—particularly in the
offshore and international markets. Schlumberger’s leading position
in these markets continues to propel strong and profitable growth
in the Core. The quarter was also supported by continued backlog
conversion, strong technology adoption, and the growing effects of
pricing improvements. Reservoir Performance also grew, while
Digital & Integration declined as growth in digital solutions
was more than offset by the non-repeat of exploration data transfer
fees recorded in the previous quarter.
International Torque Ramps Up as Revenue Exceeds
Third-Quarter 2019 Level
Le Peuch said, “Third-quarter revenue was driven by
International, which posted 13% growth sequentially and 26% year on
year. International revenue also exceeded third-quarter 2019
levels, on a rig count that is still approximately 25% lower than
in 2019. This comparison highlights the significant gains we have
made in strengthening our market participation and our continued
growth potential as rigs mobilize internationally in the quarters
to come.”
Sequentially, growth was prevalent across all international
areas led by Europe/CIS/Africa and Latin America, which increased
21% and 14%, respectively. This was driven by increased activity
and higher pricing in Well Construction, in addition to higher
Production Systems sales. Middle East & Asia revenue improved
8% sequentially due to increased multidivisional activity across
Asia and higher Reservoir Performance revenue in the Middle
East.
Outperforming in our Core—Strong Growth in Well Construction
and Production Systems
Le Peuch said, “Our Schlumberger Core continues to perform
extremely well as we continue to leverage our global breadth,
leading technology portfolio, and pricing improvements to drive
top- and bottom-line growth momentum.”
Revenue growth by Division was led by Well Construction with
revenue increasing 15% sequentially, outperforming global rig count
growth due to strong activity and pricing improvements in the
Europe/CIS/Africa and Latin America areas. Similarly, Production
Systems revenue grew 14% sequentially on higher product deliveries
and backlog conversion, mostly in international offshore basins.
Reservoir Performance revenue grew 9% due to higher intervention
and stimulation activity, both on land and offshore, particularly
in the Middle East & Asia and Europe/CIS/Africa areas. Year on
year, revenue from all Divisions experienced double-digit growth,
led by Well Construction, which grew 36%.
In relation to margin performance, Well Construction and
Reservoir Performance led in sequential margin expansion having
posted 403 bps and 209 bps growth, respectively. Year on year, Well
Construction margin expanded 635 bps to reach 22%, due to broad
pricing improvements and improved operating leverage.
Constructive Energy Fundamentals and a Supply-Led Decoupling
of Upstream Investment
Le Peuch said, “While concerns remain over the broader economic
climate, the energy industry fundamentals continue to be very
constructive. Against the backdrop of the energy crisis and limited
spare global capacity, the world faces an urgent need for increased
investment to rebalance markets, create supply redundancies, and
rebuild spare capacity. All of these are exacerbated by geopolitics
and increasing instances of supply disruptions.
“These dynamics and the urgency to restore balance are resulting
in a supply-led upcycle, characterized by the decoupling of
upstream investment from near-term demand volatility. Furthermore,
the need for sustained investments is reinforced by the long-term
demand trajectory through the end of the decade and by OPEC+
decisions that are keeping commodity prices at supportive
levels.
“Concurrently, we are witnessing a significant commitment from
the industry to decarbonize oil and gas, with E&P operators all
over the world deploying capital and adopting
technologies—including digital—at scale, to reduce emissions. Taken
together, we expect these constructive fundamentals and secular
trends to support multiple years of growth.”
A Strong Finish in the Making for an Outstanding Year
Le Peuch said, “On a companywide basis, year-to-date revenue
increased more than 20%; EPS on a GAAP basis grew 83%;
EPS—excluding charges and credits—grew 67%; and pretax segment
operating margin expanded 285 bps. I am very proud of these
exceptional results delivered by the Schlumberger team as we
approach the end of an outstanding year.
“As we close the year, we expect to deliver sequential revenue
growth and margin expansion in the fourth quarter.
“To conclude, we have stronger conviction in our strategy and
the opportunities across our three engines of growth—the Core,
Digital, and New Energy. Constructive market fundamentals for oil
and gas, energy security, and the urgency to accelerate the energy
transition will support increased investment—in both clean energy
technology development and lower carbon oil and gas production. We
have positioned the company for long-term outperformance, with a
diverse set of opportunities across the entire energy value chain.
These technology-led opportunities cover oil and gas, industrial
decarbonization, and new energy systems—all supported by digital
transformation.
“Recent regulatory decisions and incentives reinforce our view
of this compelling investment outlook and our strategic direction.
We are prepared to apply our technology, global scale, and
industrialization capabilities to lead in this energy landscape and
deliver outstanding value for our customers and shareholders.
“I am truly excited about our future as we continue to drive
innovation for a resilient and balanced energy system. I look
forward to sharing at our upcoming Investor Conference, our views
of the industry, revenue growth ambitions, earnings, and returns
potential.”
Other Events
On August 30, 2022, Schlumberger, Aker Solutions, and Subsea 7
announced an agreement to form a joint venture to drive innovation
and efficiency in subsea production to help customers unlock
reserves and reduce cycle time. The agreement will bring together a
portfolio of innovative technologies such as subsea gas
compression, all-electric subsea production systems, and other
electrification capabilities that help customers meet their
decarbonization goals. The transaction is subject to regulatory
approvals and other customary closing conditions and is expected to
close in the second half of 2023.
In October 2022, Schlumberger redeemed $895 million of its
outstanding notes, consisting of $600 million of 2.65% Senior Notes
and $295 million of 3.625% Senior Notes, both due 2022.
On October 20, 2022, Schlumberger’s Board of Directors approved
a quarterly cash dividend of $0.175 per share of outstanding common
stock, payable on January 12, 2023, to stockholders of record on
December 7, 2022.
Revenue by Geographical Area
(Stated in millions)
Three Months Ended Change
Sept. 30,2022 Jun. 30,2022 Sept. 30,2021
Sequential
Year-on-year North America
$1,543
$1,537
$1,129
0%
37%
Latin America
1,508
1,329
1,160
14%
30%
Europe/CIS/Africa
2,039
1,691
1,481
21%
38%
Middle East & Asia
2,334
2,168
2,034
8%
15%
Eliminations & other
53
48
43
n/m
n/m
$7,477
$6,773
$5,847
10%
28%
International
$5,881
$5,188
$4,675
13%
26%
North America
$1,543
$1,537
$1,129
0%
37%
n/m = not meaningful
International
Revenue in Latin America of $1.5 billion increased 14%
sequentially due to higher Well Construction revenue from increased
drilling activity and improved pricing. Increased Production
Systems sales in Brazil contributed to the sequential revenue
growth. Year on year, revenue grew 30% due to higher drilling
activity and increased pricing across the area. Increased
stimulation and drilling activity in Argentina as well as higher
Production Systems sales in Brazil also contributed to the
year-on-year revenue growth.
Europe/CIS/Africa revenue of $2.0 billion increased 21%
sequentially. This significant growth was driven by strong Well
Construction activity and improved pricing across the area, higher
Production Systems sales in Europe and Scandinavia, and
multidivisional activity increases in Sub-Sahara Africa. Year on
year, revenue grew 38%, from higher Production Systems sales in
Europe and Scandinavia, increased Well Construction activity, and
improved pricing.
Revenue in the Middle East & Asia of $2.3 billion
increased 8% sequentially due to increased multidivisional activity
across Asia and higher Reservoir Performance revenue in the Middle
East. Year on year, revenue increased 15% due to increased
multidivisional activity across Asia and higher activity from new
projects in the Middle East—notably, increased drilling activity in
Iraq and the United Arab Emirates and higher stimulation revenue in
Oman.
North America
North America revenue of $1.5 billion was essentially
flat sequentially as double-digit growth in US land revenue was
offset by reduced exploration data sales in the US Gulf of Mexico
due to the significant transfer fees recorded in the previous
quarter. US land revenue growth outperformed the rig count increase
sequentially due to higher drilling activity, increased sales of
well and surface production systems, and improved pricing.
Compared to the same quarter last year, North America revenue
grew 37%. All Divisions experienced significant year-on-year
revenue growth, led by Well Construction and Production Systems,
which grew 62% and 23%, respectively.
Third-Quarter Results by Division
Digital & Integration
(Stated in millions)
Three Months Ended Change
Sept. 30,2022 Jun. 30,2022 Sept. 30,2021
Sequential
Year-on-year Revenue International
$671
$627
$615
7%
9%
North America
229
327
196
-30%
17%
Other
-
1
1
n/m
n/m
$900
$955
$812
-6%
11%
Pretax operating income
$305
$379
$284
-20%
7%
Pretax operating margin
33.9%
39.7%
35.0%
-586 bps
-119 bps
n/m = not meaningful
Digital & Integration revenue of $900 million experienced a
6% sequential decline with a change in revenue mix compared to the
previous quarter. Revenue grew internationally, driven by higher
digital sales in the Middle East & Asia, Europe/CIS/Africa, and
Latin America areas while revenue was lower in North America on
lower exploration data sales.
Year on year, revenue growth of 11% was driven primarily by
higher digital sales across all areas and higher Asset Performance
Solutions (APS) project revenue, particularly in Canada.
Digital & Integration pretax operating margin of 34%
contracted 586 bps sequentially and 119 bps year on year due to a
less favorable revenue mix.
Reservoir Performance
(Stated in millions)
Three Months Ended Change
Sept. 30,2022 Jun. 30,2022 Sept. 30,2021
Sequential
Year-on-year Revenue International
$1,335
$1,222
$1,112
9%
20%
North America
119
111
79
7%
49%
Other
2
-
1
n/m
n/m
$1,456
$1,333
$1,192
9%
22%
Pretax operating income
$244
$195
$190
25%
28%
Pretax operating margin
16.7%
14.6%
16.0%
209 bps
77 bps
n/m = not meaningful
Reservoir Performance revenue of $1.5 billion increased 9%
sequentially primarily due to higher intervention and stimulation
activity, both on land and offshore, particularly in the Middle
East & Asia and Europe/CIS/Africa areas. North America growth
was due to higher intervention activity in the US Gulf of
Mexico.
Year on year, revenue growth of 22% was broad across all areas
due to increased activity. The revenue growth was led by the Middle
East & Asia area, which grew 30%. Intervention and stimulation
services experienced double-digit growth, both on land and
offshore.
Reservoir Performance pretax operating margin of 17% expanded
209 bps sequentially. Profitability was boosted by higher offshore
and development activity, particularly in the North America, Middle
East & Asia, and Latin America areas.
Year on year, pretax operating margin expanded 77 bps with
profitability improving both in intervention and stimulation, and
geographically in the North America and Europe/CIS/Africa
areas.
Well Construction
(Stated in millions)
Three Months Ended Change
Sept. 30,2022 Jun. 30,2022 Sept. 30,2021
Sequential
Year-on-year Revenue International
$2,406
$2,083
$1,839
16%
31%
North America
621
553
382
12%
62%
Other
57
50
52
n/m
n/m
$3,084
$2,686
$2,273
15%
36%
Pretax operating income
$664
$470
$345
41%
92%
Pretax operating margin
21.5%
17.5%
15.2%
403 bps
635 bps
n/m = not meaningful
Well Construction revenue of $3.1 billion increased 15%
sequentially, outperforming global rig count growth due to strong
activity from new projects and solid pricing improvements
internationally, particularly in the Europe/CIS/Africa and Latin
America areas. In North America, sequential revenue growth outpaced
the rig count increase in both US land and offshore. Double-digit
growth was pervasive across its measurement, drilling, fluids, and
equipment business lines.
Year on year, revenue growth of 36% was driven by strong
activity and solid pricing improvements, led by North America and
Latin America, both of which grew more than 60%. Europe/CIS/Africa
revenue increased 28% while Middle East & Asia revenue grew 16%
year on year. High double-digit growth was recorded across the
Division’s business lines led by drilling fluids and
measurements—both on land and offshore.
Well Construction pretax operating margin of 22% expanded 403
bps sequentially, due to improved profitability in all business
lines and across all areas, most prominently in Latin America.
Margin expansion was due to higher offshore and exploration
activity, favorable technology mix, and solid pricing
improvements.
Year on year, pretax operating margin expanded 635 bps, with
profitability improving across all areas, driven by higher activity
and boosted by improved pricing.
Production Systems
(Stated in millions)
Three Months Ended Change
Sept. 30,2022 Jun. 30,2022 Sept. 30,2021
Sequential
Year-on-year Revenue International
$1,569
$1,341
$1,205
17%
30%
North America
578
550
469
5%
23%
Other
3
2
-
n/m
n/m
$2,150
$1,893
$1,674
14%
28%
Pretax operating income
$224
$171
$166
31%
36%
Pretax operating margin
10.4%
9.0%
9.9%
142 bps
55 bps
n/m = not meaningful
Production Systems revenue of $2.2 billion increased 14%
sequentially on higher product deliveries and backlog
conversion—mostly offshore internationally as supply chain and
logistics constraints continue to ease. The increase was driven by
double-digit revenue growth across most business lines: in
Europe/CIS/Africa on higher deliveries of subsea and well
production systems; in Latin America due to higher sales of subsea
and midstream production systems; in Middle East & Asia on
higher sales of well, surface, and midstream production systems;
and in North America, mainly in US land, on increased sales of well
and surface production systems.
Year on year, double-digit growth was driven by new projects and
increased product deliveries mainly in Europe/CIS/Africa, North
America, and Latin America.
Production Systems pretax operating margin of 10% expanded 142
bps sequentially due to improved operating leverage from higher
volume of sales.
Year on year, pretax operating margin was slightly higher by 55
bps as higher sales volume was partially offset by increased
logistics costs and unfavorable revenue mix.
Quarterly Highlights
As the strong growth cycle in oil and gas advances, Schlumberger
continues to secure new contracts in North America and
internationally, particularly in the Middle East and in offshore
basins. During the quarter, Schlumberger secured the following
notable projects:
- In Norway, Equinor awarded Schlumberger a contract for work at
up to 11 wells at their challenging, high-temperature Kristin Sor
and Halten East fields. The integrated services contract includes
electric wireline logging, drilling, measurements, and project
management. Work is expected to start in late 2023 and continue
until 2025.
- QatarEnergy has awarded Schlumberger a five-year wireline
services contract. The contract covers open- and cased-hole
wireline logging on land and offshore, as well as tubing-conveyed
perforating and data processing and interpretation. Schlumberger
technologies, including the 10,000-psi hydraulic frac packer, 3D
far-field sonic service, Optiq* Schlumberger fiber-optic solutions,
and Pulsar* multifunction spectroscopy service, will be deployed to
evaluate new and existing wells in various projects and optimize
the production and injection of such wells. Work is expected to
start in the fourth quarter of 2022.
- Abu Dhabi National Oil Company (ADNOC) has awarded Schlumberger
a five-year framework agreement for drilling-related services,
valued at $482 million. With an optional two-year extension, the
scope of the award covers drill bits, directional drilling, and
logging-while-drilling services. Supporting ADNOC in its drive to
improve efficiency while delivering the lowest cost, lowest carbon
intensity barrels, Schlumberger will provide advanced directional
drilling and logging services to achieve high-quality wellbores
with proven trajectory control, for accurate drilling of
extended-reach horizontal and complex directional wells.
- In Brazil, Petrobras awarded Schlumberger a contract for the
latest-generation MaxFORTE* high-reliability electric submersible
pump (ESP) system for the deepwater Jubarte Field. This award also
includes a 10-year extension of in-country remote ESP surveillance,
intervention, and domain expertise provided by Schlumberger. The
first generations of the MaxFORTE ESP systems, developed for
Petrobras’ subsea developments in the Campos Basin offshore Brazil,
have so far delivered an excellent reliability above four years,
despite dramatic pressure and temperature swings—while producing
prolific volumes of heavy oil, emulsions, and gas. Run life of this
duration is a result of stringent quality from manufacturing to
installation, and the extended time between workovers for ESP
replacement is a significant value for Petrobras.
- Also in Brazil, Enauta signed contracts with Schlumberger for
the development of a holistic subsea production system in the
Atlanta Field, Enauta’s main oil production asset in the Santos
Basin. The award includes a range of subsea field-proven
technologies, including a multiphase subsea boosting system and
subsea trees. The agreement represents a robust solution that will
integrate existing wells and support future development of the
Atlanta Field.
- In Kazakhstan, Schlumberger was awarded a decarbonized
production operations contract by Karachaganak Petroleum Operating
B.V (KPO). The project will use technology that eliminates
flaring—maximizing hydrocarbon monetization and avoiding an
estimated 10,000 metric tons of CO2e per well. The production scope
of the three-year contract—which also includes wireline—covers well
cleanup, production boosting, and well bleedoff packages, which
will be delivered using the Production ExPRESS* rapid production
response solutions. Schlumberger will use the CleanPhase* well test
separator in combination with Transition Technologies*—including
the REDA Multiphase HPS* horizontal multistage surface pump, and Vx
Spectra* surface multiphase flowmeter—to deliver this project scope
with zero flaring.
- In Canada, BP Canada Energy Group ULC (bp) has awarded
Schlumberger an integrated well construction and evaluation
contract for its Ephesus deepwater exploration well. The contract
is scheduled to commence in 2023 and includes well construction and
reservoir evaluation products and services.
- In the US, Schlumberger was awarded multiple scopes for an
enhanced oil recovery pilot project by Denbury Onshore, LLC. The
award covers downhole logging, coring and core laboratory analysis,
downhole completions equipment, electric submersible REDA* pumps
configured to handle a high concentration of CO2 in the produced
fluids, and permanent distributed temperature and acoustic sensing
using Optiq Schlumberger fiber-optic solutions. Optiq solutions
will use Schlumberger intellectual property and differentiated
expertise in distributed temperature and acoustic analysis to
provide real-time operational surveillance and analysis that will
optimize recovery and maintain operational integrity.
- BOE Exploration & Production LLC awarded Schlumberger
multiple contracts for work in the Gulf of Mexico for their
contracted drillships. Schlumberger will provide deepwater
experience, technical expertise, and leading technology to the
projects in collaboration with BOE. The awards include contracts
for the supply of services for drilling tools, cementing,
mudlogging, and completions as well as contracts for equipment and
products for drilling on BOE’s multiwell campaign, including
development and exploration projects. The activity will commence in
early 2023. Additionally, Schlumberger was awarded contracts for
completions, landing string, tubing-conveyed perforating, surface
well testing, and coiled-tubing and cased-hole wireline for the
Shenandoah project to be executed in 2023-2024.
- Kosmos Energy Gulf of Mexico Operations, LLC, has awarded
OneSubsea® and its alliance partner, Subsea 7, an engineering,
procurement, construction, and installation (EPCI) contract for the
Odd Job field in the Gulf of Mexico. OneSubsea, the subsea
technologies, production, and processing systems business of
Schlumberger, will supply a subsea multiphase boosting system,
topside equipment, and a 16-mile integrated power and control
umbilical. Project management, engineering, assembly, and testing
will be performed by OneSubsea, and transport to the field and
installation will be carried out by Subsea 7. The system will be
tied back to the existing facility, thereby achieving significant
cost and energy savings, as well as reducing CO2 emissions, all
while improving Kosmos Energy’s ultimate recovery.
Schlumberger continuously seeks new applications for its
technologies in adjacent industries, applying its domain expertise
to solutions that support sustainable energy production:
- Zorlu Enerji, Turkey's leading geothermal investor, has awarded
Schlumberger a contract for 14 additional REDA Thermal*
power-efficient geothermal electric submersible pumps (ESPs) to
increase zero-carbon electricity generation at its Kızıldere
geothermal power facility. The first high-volume and
high-horsepower REDA Thermal pump was installed at the Kızıldere
facility in July, and the initial boost attributable to the pump is
over 1.7 megawatts (MW) of zero-carbon electricity. The award
includes initiation of digital services for ESP monitoring and
surveillance. The REDA Thermal pumps are designed specifically to
meet the requirements of high-enthalpy geothermal wells. The
technology was developed leveraging expertise from GeothermEx, a
Schlumberger multidisciplinary geothermal consulting and services
company.
As customers continue to advance their digital transformation
and apply digital solutions that improve efficiency and
productivity, Schlumberger’s digital platform strategy is a key
engine of growth. The Schlumberger Digital Forum 2022 brought
together more than 1,250 industry leaders, domain experts, and
digital professionals and showcased the power of Digital to
accelerate the industry’s transformation, delivering higher value
and lower carbon.
- Schlumberger and Aramco have announced plans to collaborate and
develop a digital platform that will provide sustainability
solutions for hard-to-abate industrial sectors. The proposed
platform will enable companies in industries such as oil and gas,
chemicals, utilities, cement, and steel to collect, measure,
report, and verify their emissions, while also evaluating different
decarbonization pathways. Building on an open architecture, the
platform will be extendable into other aspects of the industries’
sustainability efforts, both current and future, and will
ultimately include workflows such as water sustainability and
management, methane emissions measurement, flaring reduction and
prevention, and carbon capture and storage.
- Repsol has selected Schlumberger to deploy the DELFI* cognitive
E&P environment hosted on the Microsoft Azure cloud platform to
further enhance its subsurface development capabilities. Repsol is
implementing a strategy to transform the way its organization works
by leveraging cloud capabilities, and the DELFI environment will
streamline geological and geophysical (G&G) workflows to
optimize their performance. The DELFI Petrotechnical Suite and
DELFI On Demand Reservoir Simulation will be deployed across
Repsol’s organization to boost the work of field development teams.
The open cloud-based platform will support collaboration among
geoscience teams in worldwide locations using the same data for
improved performance when running G&G workflows. The processing
requirements for reservoir engineering simulations will be scaled
as needed and will enable integrating the DELFI Agile Reservoir
Modeling workflow, when required. Additionally, Repsol´s developers
can use the platform to deploy native solutions with AI and machine
learning capabilities.
- ENEVA S. A., an integrated energy company and the largest
private natural gas operator in Brazil, has signed an agreement
with Schlumberger that will unlock new technology through the DELFI
cognitive E&P environment, enabling new digital workflows. The
agreement includes cross-domain petrotechnical access in the DELFI
environment for exploration, production, and engineering as well as
integrated reservoir modeling and transition expert services. This
strategic partnership will be governed by a comprehensive digital
roadmap that will gradually elevate ENEVA to the next level of
digitalization by leveraging the capabilities within the DELFI
environment to improve decision making and enhance performance
through technical teams’ collaboration in an open environment.
- Wintershall Dea has selected Schlumberger as its preferred
partner on the acceleration of its Terra Nova subsurface
transformation program. Working with Microsoft, Schlumberger was
first to contribute the open-source code of its DELFI Data
Ecosystem to the OSDU™—a single reference cloud-based data
platform—which Wintershall Dea will leverage to accelerate the
delivery of its subsurface data platform to support its business in
making smarter decisions, faster. With the deployment of the OSDU
Data Platform, Wintershall Dea aims to analyze data more
efficiently, search and discover data more rapidly, and take
advantage of new cloud-based applications and emerging digital
innovations.
- Schlumberger released the Schlumberger Enterprise Data
Solution*, which is powered by Microsoft Energy Data Services.
Developed to deliver the most comprehensive capabilities for
subsurface data—in alignment with the emerging requirements of the
OSDU Technical Standard, a new open industry standard for energy
data—the Enterprise Data Solution makes data accessible on an
unprecedented scale for the global energy industry. This fully
integrated cloud-native enterprise data solution enables end-to-end
data-driven workflows scalable to customers’ organizations. Full
upstream data capabilities will expand from subsurface to
production to well construction and welcome the transition to new
and low-carbon energy sources. The Enterprise Data Solution will
also accelerate advanced workflows to screen, assess, and design
carbon capture, utilization, and storage (CCUS) projects to support
rapidly growing demand for large-scale CO2 sequestration. Early
adopters of these exciting new technologies include PETRONAS and
Chevron.
- Schlumberger has launched its Digital Platform Partner Program,
which will allow independent software vendors (ISVs) to leverage
the openness and extensibility of Schlumberger’s digital platform
to build new applications and software and offer them to the
market. Schlumberger customers will access a broad range of
interoperable digital solutions, enabling data-driven decision
making across the energy value chain and rapidly accelerating the
time to value from digital transformation, at global scale. At
launch, nine ISVs are offering software solutions to Schlumberger
customers, and the platform has been designed with an open
framework to quickly onboard new partners. The solutions are built
and deployed through the DELFI digital E&P platform and
integrate seamlessly with industry-standard data platforms. This
enables unprecedented value creation due to the interoperability
across workflows and organizations.
Customer adoption of Schlumberger technology is accelerating and
continues to significantly impact performance in drilling,
production, and integrated operations. Our innovative solutions
contribute to making the exploration and development of oil and gas
assets more resilient and more efficient, with lower carbon and
less impact on the environment. Examples from the quarter
include:
- In East Texas, KJ Energy drilled seven wells in the Cotton
Valley Formation fully remotely using Schlumberger technology to
continuously increase the drilling efficiency in the curve-lateral
production section well over well. The longest single run lateral
was drilled using the fit-for-basin bottomhole assembly that
included the PowerDrive Orbit G2* rotary steerable system, xBolt
G2* accelerated drilling service, and AxeBlade* ridged diamond
element bit. Other firsts for the basin were the fastest lateral
and the longest lateral drilled without motor assistance. This
performance helped KJ Energy attain 50% higher drilling efficiency
compared to the conventional motor assemblies utilized to drill
curves in the past.
- In Western Kazakhstan, Schlumberger technology helped
Karachaganak Petroleum Operating B.V. (KPO) to avoid 1.3 million
metric tons of CO2e emissions through zero-flaring techniques.
Schlumberger deployed its surface pressure boosting package, a key
part of its Production ExPRESS rapid production response solutions
portfolio that requires no chemicals or well intervention.
Conventional solutions often enable oil production while flaring
the produced gas using methods that are both costly and result in
increased emissions from flaring. Using technologies including the
REDA Multiphase HPS horizontal multistage surface pump and the Vx
Spectra surface multiphase flowmeter—both part of the Transition
Technologies portfolio—flaring was completely eliminated, saving
the gas instead for export. The integrated approach contributed to
KPO being able to quickly bring wells back into production while
commercializing gas that would have otherwise been flared.
- In Libya, Schlumberger conducted an intervention campaign with
Mellitah Oil & Gas that increased oil production by 4,000 bbl/d
in the Bu Attifel Field. The success of this campaign led to the
award of a 100-well production enhancement project. A joint team of
Schlumberger and customer experts collaborated early in the
intervention candidate selection process, increasing the likelihood
of production and recovery increases through close collaboration,
joint planning, and tight alignment on objectives. The best shut-in
candidate wells were selected for intervention, and Schlumberger
performed production and integrity logs to determine where to
strategically set water shutoff plugs and reperforate production
zones for maximum benefit. The treatment resulted in a production
uplift that helped Mellitah Oil & Gas achieve its production
goals.
- In Kuwait, Schlumberger applied a fit-for-purpose combination
of technologies for Kuwait Oil Company that unlocked resource
potential of the northern area in Burgan Field. A bespoke new
workflow using unique technologies was created to deliver a
thin-bed evaluation across these formations. Advanced
high-resolution petrophysics evaluation successfully confirmed oil
production, which was then validated through quality samples along
with reservoir productivity understanding using the Saturn* 3D
radial probe.
- In Indonesia, Schlumberger used its novel EverCRETE*
CO2-resistant cement system for Harbour Energy to maintain
long-term well integrity in a deepwater exploration well with high
CO2 content at water depth of around 4,200 ft. With a self-healing
matrix that is reactive to CO2 exposure, the EverCRETE system also
reduces potential remedial work in the case of a leak path
developing. The use of the system for Harbour Energy reduced the
project’s CO2 footprint by 63% when compared with traditional
cement systems.
In new energy technologies, Schlumberger is uniquely positioned
to apply its domain expertise and experience in technology
industrialization to be a leader in the energy transition at large.
We continue to build partnerships across various industries to
develop clean energy solutions.
- The Schlumberger New Energy business has secured an investment
in ZEG Power to scale up the ZEG ICC™ technology for clean hydrogen
production from hydrocarbon gas. The ZEG ICC technology is based on
sorbent enhanced reforming and was originally developed at the
Institute for Energy Technology (IFE) in Norway. The first
commercial ZEG plant will be installed by year-end 2022 and put
into operation in 2023 at CCB Energy Park at Kollsnes, Norway,
adjacent to the planned Northern Lights CO2 storage
infrastructure.
- Expanding its portfolio of CO2 capture technologies,
Schlumberger’s New Energy business has entered into an agreement
with RTI International to accelerate the industrialization and
scale-up of its proprietary nonaqueous solvent (NAS) technology for
CO2 capture. The NAS technology is applicable to a broad variety of
industrial emissions, including the hard-to-abate emissions from
steel and cement industries and emissions from power generation.
This next-generation absorption technology enables higher carbon
capture efficiency while consuming less energy compared to
conventional solvents, resulting in a significant reduction in
operating costs and enhancing CCUS project economics. RTI and
Schlumberger will collaborate to develop models that enable fast
design and process customization to achieve a step-change in CO2
capture operations while leveraging Schlumberger’s global footprint
to expand market opportunities for the technology.
- As mobilization of equipment began for the NeoLith Energy pilot
plant in Clayton Valley, Nevada, Schlumberger’s New Energy business
expanded its partnership with Gradiant, a global water solutions
provider, to introduce a key sustainable technology into the
production process for battery-grade lithium compounds. As part of
Schlumberger’s NeoLith Energy direct lithium extraction and
production flowsheet, Gradiant technology is used to concentrate
the lithium solution and generate freshwater—a critical element in
sustainable lithium production from brine. This collaboration will
enable the lithium industry to meet surging mineral demand with a
previously unattainable level of water utilization, by
simultaneously lowering the consumption of freshwater and reducing
wastewater. This technology integration can be applied to new
lithium mineral extraction and production sites, opening
opportunities to untapped lithium production regions, as well as
existing lithium production operations.
FINANCIAL TABLES
Condensed Consolidated Statement of Income
(Stated in millions, except per
share amounts)
Third Quarter Nine Months Periods Ended September 30,
2022
2021
2022
2021
Revenue
$7,477
$5,847
$20,213
$16,704
Interest & other income (1)
75
56
436
91
Expenses Cost of revenue
6,042
4,862
16,623
14,135
Research & engineering
160
140
456
409
General & administrative
94
80
277
231
Interest
122
130
369
402
Income before taxes (1)
$1,134
$691
$2,924
$1,618
Tax expense (1)
215
129
514
301
Net income (1)
$919
$562
$2,410
$1,317
Net income attributable to noncontrolling interest
12
12
33
37
Net income attributable to Schlumberger (1)
$907
$550
$2,377
$1,280
Diluted earnings per share of Schlumberger (1)
$0.63
$0.39
$1.65
$0.90
Average shares outstanding
1,418
1,402
1,414
1,399
Average shares outstanding assuming dilution
1,439
1,424
1,436
1,422
Depreciation & amortization included in expenses (2)
$533
$530
$1,598
$1,588
(1)
See section entitled “Charges &
Credits” for details.
(2)
Includes depreciation of property, plant,
and equipment and amortization of intangible assets, exploration
data costs, and APS investments.
Condensed Consolidated Balance Sheet
(Stated in millions)
Sept. 30,
Dec. 31,
Assets
2022
2021
Current Assets Cash and short-term investments
$3,609
$3,139
Receivables
6,650
5,315
Inventories
4,143
3,272
Other current assets
1,209
928
15,611
12,654
Investment in affiliated companies
1,762
2,044
Fixed assets
6,407
6,429
Goodwill
12,990
12,990
Intangible assets
3,043
3,211
Other assets
4,280
4,183
$44,093
$41,511
Liabilities and Equity Current Liabilities Accounts payable
and accrued liabilities
$9,034
$8,382
Estimated liability for taxes on income
938
879
Short-term borrowings and current portion of long-term debt
899
909
Dividends payable
263
189
11,134
10,359
Long-term debt
12,452
13,286
Postretirement benefits
233
231
Other liabilities
2,763
2,349
26,582
26,225
Equity
17,511
15,286
$44,093
$41,511
Liquidity
(Stated in millions)
Components of Liquidity Sept. 30,2022 Jun. 30,2022 Sept. 30,2021
Dec. 31,2021 Cash and short-term investments
$3,609
$2,816
$2,942
$3,139
Short-term borrowings and current portion of long-term debt
(899)
(901)
(1,025)
(909)
Long-term debt
(12,452)
(12,946)
(14,370)
(13,286)
Net Debt (1)
$(9,742)
$(11,031)
$(12,453)
$(11,056)
Details of changes in liquidity follow:
Nine
Third
Nine
Months
Quarter
Months
Periods Ended September 30,
2022
2022
2021
Net income
$2,410
$920
$1,317
Charges and credits, net of tax (2)
(265)
-
(36)
2,145
920
1,281
Depreciation and amortization (3)
1,598
533
1,588
Stock-based compensation expense
236
76
229
Change in working capital
(1,814)
70
(798)
US federal tax refund
-
-
477
Other
(59)
(32)
(58)
Cash flow from operations (4)
2,106
1,567
2,719
Capital expenditures
(1,046)
(382)
(694)
APS investments
(420)
(109)
(305)
Exploration data capitalized
(77)
(13)
(21)
Free cash flow (5)
563
1,063
1,699
Dividends paid
(600)
(248)
(524)
Proceeds from employee stock plans
171
78
137
Business acquisitions and investments, net of cash acquired plus
debt assumed
(45)
(37)
(98)
Proceeds from sale of Liberty shares
513
-
-
Proceeds from sale of real estate
120
-
-
Taxes paid on net settled stock-based compensation awards
(92)
(7)
(21)
Other
(118)
(32)
(58)
Decrease in net debt before impact of changes in foreign
exchange rates
512
817
1,135
Impact of changes in foreign exchange rates on net debt
802
472
292
Decrease in Net Debt
1,314
1,289
1,427
Net Debt, beginning of period
(11,056)
(11,031)
(13,880)
Net Debt, end of period
$(9,742)
$(9,742)
$(12,453)
(1)
“Net Debt” represents gross debt less cash
and short-term investments. Management believes that Net Debt
provides useful information regarding the level of Schlumberger’s
indebtedness by reflecting cash and investments that could be used
to repay debt. Net Debt is a non-GAAP financial measure that should
be considered in addition to, not as a substitute for or superior
to, total debt.
(2)
See section entitled “Charges &
Credits” for details.
(3)
Includes depreciation of property, plant,
and equipment and amortization of intangible assets, exploration
data costs, and APS investments.
(4)
Includes severance payments of $60 million
and $22 million during the nine months and third quarter ended
September 30, 2022, respectively; and $226 million and $42 million
during the nine months and third quarter ended September 30, 2021,
respectively.
(5)
“Free cash flow” represents cash flow from
operations less capital expenditures, APS investments, and
exploration data costs capitalized. Management believes that free
cash flow is an important liquidity measure for the company and
that it is useful to investors and management as a measure of
Schlumberger’s ability to generate cash. Once business needs and
obligations are met, this cash can be used to reinvest in the
company for future growth or to return to shareholders through
dividend payments or share repurchases. Free cash flow does not
represent the residual cash flow available for discretionary
expenditures. Free cash flow is a non-GAAP financial measure that
should be considered in addition to, not as a substitute for or
superior to, cash flow from operations.
Charges & Credits
In addition to financial results determined in accordance with
US generally accepted accounting principles (GAAP), this
third-quarter 2022 earnings release also includes non-GAAP
financial measures (as defined under the SEC’s Regulation G). In
addition to the non-GAAP financial measures discussed under
“Liquidity”, net income, excluding charges & credits, as well
as measures derived from it (including diluted EPS, excluding
charges & credits; Schlumberger net income, excluding charges
& credits; effective tax rate, excluding charges & credits;
and adjusted EBITDA) are non-GAAP financial measures. Management
believes that the exclusion of charges & credits from these
financial measures enables it to evaluate more effectively
Schlumberger’s operations period over period and to identify
operating trends that could otherwise be masked by the excluded
items. These measures are also used by management as performance
measures in determining certain incentive compensation. The
foregoing non-GAAP financial measures should be considered in
addition to, not as a substitute for or superior to, other measures
of financial performance prepared in accordance with GAAP. The
following is a reconciliation of certain of these non-GAAP measures
to the comparable GAAP measures. For a reconciliation of adjusted
EBITDA to the comparable GAAP measure, please refer to the section
titled “Supplemental Information” (Question 9).
(Stated in millions, except per
share amounts)
Second Quarter 2022 Pretax Tax Noncont.Interests Net
DilutedEPS Schlumberger net income (GAAP basis)
$1,152
$182
$11
$959
$0.67
Gain on sale of Liberty shares (1)
(216)
(13)
-
(203)
(0.14)
Gain on sale of real estate (1)
(43)
(2)
-
(41)
(0.03)
Schlumberger net income, excluding charges & credits
$893
$167
$11
$715
$0.50
Nine Months 2022 Pretax Tax Noncont.Interests Net
DilutedEPS * Schlumberger net income (GAAP basis)
$2,924
$514
$33
$2,377
$1.65
Gain on sale of Liberty shares (1)
(242)
(17)
-
(225)
(0.16)
Gain on sale of real estate (1)
(43)
(2)
-
(41)
(0.03)
Schlumberger net income, excluding charges & credits
$2,639
$495
$33
$2,111
$1.47
Third Quarter 2021 Pretax Tax Noncont.Interests Net
DilutedEPS Schlumberger net income (GAAP basis)
$691
$129
$12
$550
$0.39
Unrealized gain on marketable securities (1)
(47)
(11)
-
(36)
(0.03)
Schlumberger net income, excluding charges & credits
$644
$118
$12
$514
$0.36
Nine Months 2021 Pretax Tax Noncont.Interests Net
DilutedEPS * Schlumberger net income (GAAP basis)
$1,618
$301
$37
$1,280
$0.90
Unrealized gain on marketable securities (1)
(47)
(11)
-
(36)
(0.03)
Schlumberger net income, excluding charges & credits
$1,571
$290
$37
$1,244
$0.88
There were no charges & credits during
the third quarter of 2022 or during the first six months of
2021.
* Does not add due to rounding.
(1)
Classified in Interest & other income
in the Condensed Consolidated Statement of Income
Divisions
(Stated in millions)
Three Months Ended Sept. 30, 2022 Jun. 30, 2022 Sept.
30, 2021
Revenue IncomeBeforeTaxes Revenue
IncomeBeforeTaxes Revenue IncomeBeforeTaxes Digital &
Integration
$900
$305
$955
$379
$812
$284
Reservoir Performance
1,456
244
1,333
195
1,192
190
Well Construction
3,084
664
2,686
470
2,273
345
Production Systems
2,150
224
1,893
171
1,674
166
Eliminations & other
(113)
(37)
(94)
(56)
(104)
(77)
Pretax segment operating income
1,400
1,159
908
Corporate & other
(155)
(148)
(145)
Interest income(1)
8
3
8
Interest expense(1)
(119)
(121)
(127)
Charges & credits(2)
-
259
47
$7,477
$1,134
$6,773
$1,152
$5,847
$691
(Stated in millions)
Nine Months Ended Sept. 30, 2022 Sept. 30, 2021
Revenue IncomeBeforeTaxes Revenue IncomeBeforeTaxes
Digital & Integration
$2,713
$976
$2,401
$805
Reservoir Performance
3,999
598
3,312
448
Well Construction
8,168
1,522
6,319
827
Production Systems
5,647
509
4,946
475
Eliminations & other
(314)
(151)
(274)
(176)
Pretax segment operating income
3,454
2,379
Corporate & other
(468)
(434)
Interest income(1)
13
17
Interest expense(1)
(360)
(391)
Charges & credits(2)
285
47
$20,213
$2,924
$16,704
$1,618
(1)
Excludes amounts which are included in the
segments’ results.
(2)
See section entitled “Charges &
Credits” for details.
Supplementary Information Frequently Asked
Questions
1)
What is the capital investment guidance
for the full-year 2022?
Capital investment (composed of capex,
exploration data costs, and APS investments) for the full-year 2022
is expected to be approximately $2.2 billion.
2)
What were cash flow from operations and
free cash flow for the third quarter of 2022?
Cash flow from operations for the third
quarter of 2022 was $1.6 billion, and free cash flow was $1.1
billion.
3)
What was included in “Interest and
other income” for the third quarter of 2022?
“Interest and other income” for the third
quarter of 2022 was $75 million. This consisted of interest income
of $33 million and earnings of equity method investments of $42
million.
4)
How did interest income and interest
expense change during the third quarter of 2022?
Interest income of $33 million for the
third quarter of 2022 increased $14 million sequentially. Interest
expense of $122 million decreased $2 million sequentially.
5)
What is the difference between
Schlumberger’s consolidated income before taxes and pretax segment
operating income?
The difference consists of corporate
items, charges and credits, and interest income and interest
expense not allocated to the segments as well as stock-based
compensation expense, amortization expense associated with certain
intangible assets, certain centrally managed initiatives, and other
nonoperating items.
6)
What was the effective tax rate (ETR)
for the third quarter of 2022?
The ETR for the third quarter of 2022,
calculated in accordance with GAAP, was 18.9% as compared to 15.8%
for the second quarter of 2022. Excluding charges and credits, the
ETR for the second quarter of 2022 was 18.6%. There were no charges
and credits in the third quarter of 2022.
7)
How many shares of common stock were
outstanding as of September 30, 2022, and how did this change from
the end of the previous quarter?
There were 1.418 billion shares of common
stock outstanding as of September 30, 2022, and 1.414 billion
shares outstanding as of June 30, 2022.
(Stated in millions)
Shares outstanding at June 30, 2022
1,414
Shares issued under employee stock purchase plan
3
Shares issued to optionees, less shares exchanged
-
Vesting of restricted stock
1
Shares outstanding at September 30, 2022
1,418
8)
What was the weighted average number of
shares outstanding during the third quarter of 2022 and second
quarter of 2022? How does this reconcile to the average number of
shares outstanding, assuming dilution, used in the calculation of
diluted earnings per share?
The weighted average number of shares
outstanding was 1.418 billion during the third quarter of 2022 and
1.414 billion during the second quarter of 2022. The following is a
reconciliation of the weighted average shares outstanding to the
average number of shares outstanding, assuming dilution, used in
the calculation of diluted earnings per share.
(Stated in millions)
Third Quarter 2022
Second Quarter 2022
Weighted average shares outstanding
1,418
1,414
Unvested restricted stock
21
22
Average shares outstanding, assuming dilution
1,439
1,436
9)
What was Schlumberger’s adjusted EBITDA
in the third quarter of 2022, the second quarter of 2022, and the
third quarter of 2021?
Schlumberger’s adjusted EBITDA was $1.756
billion in the third quarter of 2022, $1.530 billion in the second
quarter of 2022, and $1.296 billion in the third quarter of 2021,
and was calculated as follows:
(Stated in millions)
Third Quarter2022 Second Quarter2022 Third Quarter2021 Net
income attributable to Schlumberger
$907
$959
$550
Net income attributable to noncontrolling interests
12
11
12
Tax expense
215
182
129
Income before taxes
$1,134
$1,152
$691
Charges & credits
-
(259)
(47)
Depreciation and amortization
533
532
530
Interest expense
122
124
130
Interest income
(33)
(19)
(8)
Adjusted EBITDA
$1,756
$1,530
$1,296
Adjusted EBITDA represents income before
taxes, excluding charges & credits, depreciation and
amortization, interest expense, and interest income. Management
believes that adjusted EBITDA is an important profitability measure
for Schlumberger and that it allows investors and management to
more efficiently evaluate Schlumberger’s operations period over
period and to identify operating trends that could otherwise be
masked. Adjusted EBITDA is also used by management as a performance
measure in determining certain incentive compensation. Adjusted
EBITDA should be considered in addition to, not as a substitute for
or superior to, other measures of financial performance prepared in
accordance with GAAP.
10)
What were the components of
depreciation and amortization expense for the third quarter of
2022, the second quarter of 2022, and the third quarter of
2021?
The components of depreciation and
amortization expense for the third quarter of 2022, the second
quarter of 2022, and the third quarter of 2021 were as follows:
(Stated in millions)
Third Quarter2022 Second Quarter2022 Third Quarter2021
Depreciation of fixed assets
$343
$340
$350
Amortization of intangible assets
76
75
75
Amortization of APS investments
96
87
82
Amortization of exploration data costs capitalized
18
30
23
$533
$532
$530
About Schlumberger
Schlumberger (NYSE: SLB) is a technology company that partners
with customers to access energy. Our people, representing over 160
nationalities, are providing leading digital solutions and
deploying innovative technologies to enable performance and
sustainability for the global energy industry. With expertise in
more than 120 countries, we collaborate to create technology that
unlocks access to energy for the benefit of all.
Find out more at www.slb.com
*Mark of Schlumberger or a Schlumberger company. Other company,
product, and service names are the properties of their respective
owners.
Conference Call Information
Schlumberger will hold a conference call to discuss the earnings
press release and business outlook on Friday, October 21, 2022. The
call is scheduled to begin at 9:30 a.m. US Eastern Time. To access
the call, which is open to the public, please contact the
conference call operator at +1 (844) 721-7241 within North America,
or +1 (409) 207-6955 outside North America, approximately 10
minutes prior to the call’s scheduled start time, and provide the
access code 8858313. At the conclusion of the conference call, an
audio replay will be available until November 20, 2022, by dialing
+1 (866) 207-1041 within North America, or +1 (402) 970-0847
outside North America, and providing the access code 1942759. The
conference call will be webcast simultaneously at
www.slb.com/irwebcast on a listen-only basis. A replay of the
webcast will also be available at the same website until November
20, 2022.
This third-quarter 2022 earnings press release, as well as other
statements we make, contain “forward-looking statements” within the
meaning of the federal securities laws, which include any
statements that are not historical facts. Such statements often
contain words such as “expect,” “may,” “can,” “believe,” “predict,”
“plan,” “potential,” “projected,” “projections,” “precursor,”
“forecast,” “outlook,” “expectations,” “estimate,” “intend,”
“anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,”
“should,” “could,” “would,” “will,” “see,” “likely,” and other
similar words. Forward-looking statements address matters that are,
to varying degrees, uncertain, such as statements about our
financial and performance targets and other forecasts or
expectations regarding, or dependent on, our business outlook;
growth for Schlumberger as a whole and for each of its Divisions
(and for specified business lines, geographic areas, or
technologies within each Division); oil and natural gas demand and
production growth; oil and natural gas prices; forecasts or
expectations regarding energy transition and global climate change;
improvements in operating procedures and technology; capital
expenditures by Schlumberger and the oil and gas industry; our
business strategies, including digital and “fit for basin,” as well
as the strategies of our customers; our effective tax rate; our APS
projects, joint ventures, and other alliances; our response to the
COVID-19 pandemic and our preparedness for other widespread health
emergencies; the impact of the ongoing conflict in Ukraine on
global energy supply; access to raw materials; future global
economic and geopolitical conditions; future liquidity; and future
results of operations, such as margin levels. These statements are
subject to risks and uncertainties, including, but not limited to,
changing global economic and geopolitical conditions; changes in
exploration and production spending by our customers, and changes
in the level of oil and natural gas exploration and development;
the results of operations and financial condition of our customers
and suppliers; the inability to achieve its financial and
performance targets and other forecasts and expectations; the
inability to achieve our net-zero carbon emissions goals or interim
emissions reduction goals; general economic, geopolitical, and
business conditions in key regions of the world; the ongoing
conflict in Ukraine; foreign currency risk; inflation; pricing
pressure; weather and seasonal factors; unfavorable effects of
health pandemics; availability and cost of raw materials;
operational modifications, delays, or cancellations; challenges in
our supply chain; production declines; the extent of future
charges; the inability to recognize efficiencies and other intended
benefits from our business strategies and initiatives, such as
digital or Schlumberger New Energy; as well as our cost reduction
strategies; changes in government regulations and regulatory
requirements, including those related to offshore oil and gas
exploration, radioactive sources, explosives, chemicals, and
climate-related initiatives; the inability of technology to meet
new challenges in exploration; the competitiveness of alternative
energy sources or product substitutes; and other risks and
uncertainties detailed in this press release and our most recent
Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities
and Exchange Commission. If one or more of these or other risks or
uncertainties materialize (or the consequences of any such
development changes), or should our underlying assumptions prove
incorrect, actual results or outcomes may vary materially from
those reflected in our forward-looking statements. Forward-looking
and other statements in this press release regarding our
environmental, social, and other sustainability plans and goals are
not an indication that these statements are necessarily material to
investors or required to be disclosed in our filings with the SEC.
In addition, historical, current, and forward-looking
environmental, social, and sustainability-related statements may be
based on standards for measuring progress that are still
developing, internal controls and processes that continue to
evolve, and assumptions that are subject to change in the future.
Statements in this press release are made as of the date of this
release, and Schlumberger disclaims any intention or obligation to
update publicly or revise such statements, whether as a result of
new information, future events, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20221019006128/en/
Investor Relations Contacts: Ndubuisi Maduemezia – Vice
President of Investor Relations, Schlumberger Limited Joy V.
Domingo – Director of Investor Relations, Schlumberger Limited
Office +1 (713) 375-3535 investor-relations@slb.com
Media Contacts: Josh Byerly – Vice President of
Communications, Schlumberger Limited Moira Duff – Director of
External Communications, Schlumberger Limited Office +1 (713)
375-3407 media@slb.com
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