01—Abstract
Summary
Summary of the 10-K filed January 31, 2013. Cited figures are marked; the original filing is the authoritative source.
SLB Limited/NV (SLB) reported record revenue of $42.15 billiona for the fiscal year ended December 30, 2012, marking a 14% increase from the previous year.
This growth was primarily driven by strong exploration and development activities, both offshore and in key international markets. The company experienced robust revenue growth across all its geographic areas and product groups, with international operations showing a 16%b increase and North America showing a 9% increase. Looking ahead, SLB anticipates continued global oil demand growth, supported by increasing production in North America.
The company's financial position remains strong, with significant cash reserves and a commitment to returning value to shareholders through dividends and share repurchases. The dividend was increased by 13.6%c in early 2013. While global macroeconomic conditions present some uncertainty, SLB is well-positioned to navigate the evolving energy landscape.
02—Key points
Key Highlights
- Record annual revenue of $42.15 billion in 2012, a 14% increase year-over-year.
- Strong performance driven by robust international and offshore exploration and development activities.
- Revenue growth across all geographic areas (North America, Latin America, Europe/CIS/Africa, Middle East & Asia) and product groups (Reservoir Characterization, Drilling, Production).
- Increased quarterly dividend by 13.6% to $0.3125 per share in early 2013.
- Significant cash and short-term investments of approximately $6.3 billion as of December 31, 2012.
- Continued investment in research and engineering, representing 2.8% of revenue in 2012.
- No single customer exceeded 10% of consolidated revenue in 2012, indicating a diversified customer base.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, SLB kept $0.13.
- Revenue$41.73B100.0%
- Cost of revenue−$32.88B78.8%
- Gross profit$8.85B21.2%
- Operating costs−$3.62B8.7%
- Operating income$5.23B12.5%
- Interest, other & tax$260.0M0.6%
- Net income$5.49B13.2%
Where FY2012 revenue went
$41.73B- Cost of revenue: $32.88B, 79% of revenue
- Operating income: $5.23B, 13% of revenue
- R&D: $1.15B, 2.8% of revenue
- Other operating costs: $2.46B, 5.9% of revenue
Kept 13% as operating incomeOperating income $5.23B · 13%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed January 31, 2013Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $41.73B$36.58B | +14.1% |
| Cost of Revenue | $32.88B$28.80B | +14.2% |
| Gross Profit | $8.85B$7.78B | +13.7% |
| R&D Expenses | $1.15B$1.06B | +8.7% |
| Operating Income | $5.23B$4.52B | +15.8% |
| Interest Expense | $340.00M$298.00M | +14.1% |
| Net Income | $5.49B$5.00B | +9.9% |
| EPS (Basic) | $4.13$3.70 | +11.6% |
| EPS (Diluted) | $4.10$3.67 | +11.7% |
| Shares Outstanding (Basic) | 1.33B1.35B | −1.4% |
| Shares Outstanding (Diluted) | 1.34B1.36B | −1.6% |
05—Questions
Frequently Asked Questions
What was SLB's revenue performance in 2012?
SLB achieved a record revenue of $42.15 billion in 2012, an increase of 14% from $36.96 billion in 2011. This growth was driven by strong demand for oilfield services internationally and in North America, particularly in offshore markets.
How did SLB's different business segments perform in 2012?
All three major product groups – Reservoir Characterization, Drilling, and Production – experienced double-digit revenue growth. Reservoir Characterization revenue grew 15% to $11.42 billion, Drilling Group revenue increased 15% to $15.97 billion, and Production Group revenue rose 13% to $14.88 billion.
What is SLB's outlook for 2013?
SLB anticipates continued global oil demand growth, with North American light tight oil production expected to increase. Global spare capacity is projected to remain largely unchanged, supporting oil prices. Natural gas market dynamics are expected to remain consistent across major regions. The company believes its financial position is sufficient to meet business requirements.
How is SLB returning value to shareholders?
SLB returned value to shareholders through dividend payments and share repurchases. The company paid $1.43 billion in dividends in 2012 and announced a 13.6% increase in its quarterly dividend to $0.3125 in January 2013. As of December 31, 2012, approximately $879 million remained available under its share repurchase program.
06—Continue