10-KPeriod: FY2012

SLB LIMITED/NV Annual Report, Year Ended Dec 31, 2012

Filed January 31, 2013For Securities:SLB

Summary

SLB Limited/NV (SLB) reported record revenue of $42.15 billion 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% 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% in early 2013. While global macroeconomic conditions present some uncertainty, SLB is well-positioned to navigate the evolving energy landscape.

Financial Highlights

52 data points
Beta

Revenue

$41.73B

21.2% Gross Margin

Net Income

$5.49B

13.2% Net Margin

EPS (Diluted)

$4.10

Total Assets

$61.55B

Cash & Equivalents

$1.91B

Free Cash Flow

$2.22B

Financial Statements
Beta
Revenue$41.73B
Cost of Revenue$32.88B
Gross Profit$8.85B
R&D Expenses$1.15B
Operating Income$5.23B
Interest Expense$340.00M
Net Income$5.49B
EPS (Basic)$4.13
EPS (Diluted)$4.10
Shares Outstanding (Basic)1.33B
Shares Outstanding (Diluted)1.34B

Key Highlights

  • 1Record annual revenue of $42.15 billion in 2012, a 14% increase year-over-year.
  • 2Strong performance driven by robust international and offshore exploration and development activities.
  • 3Revenue growth across all geographic areas (North America, Latin America, Europe/CIS/Africa, Middle East & Asia) and product groups (Reservoir Characterization, Drilling, Production).
  • 4Increased quarterly dividend by 13.6% to $0.3125 per share in early 2013.
  • 5Significant cash and short-term investments of approximately $6.3 billion as of December 31, 2012.
  • 6Continued investment in research and engineering, representing 2.8% of revenue in 2012.
  • 7No single customer exceeded 10% of consolidated revenue in 2012, indicating a diversified customer base.

Frequently Asked Questions

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.

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.

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.

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.