10-KPeriod: FY2021

SLB LIMITED/NV Annual Report, Year Ended Dec 31, 2021

Filed January 26, 2022For Securities:SLB

Summary

SLB (formerly Schlumberger) reported a revenue of $22.9 billion for the fiscal year ended December 31, 2021, a slight decrease of 3% year-over-year, primarily due to the divestiture of its North America pressure pumping business (OneStim) and the North America low-flow artificial lift business. Excluding these divestitures, the company's global revenue actually grew by 3%, with North America increasing by 8% and international revenue by 2%. The company saw a significant rebound in the second half of 2021, with revenue growing 12% year-over-year, and an 18% increase when adjusted for divestitures, indicating a strong recovery driven by global oil and gas activity. Looking ahead, SLB anticipates favorable industry macro fundamentals for 2022, projecting double-digit growth in both international and North American markets. The company's strategic focus on strengthening its core business, optimizing its go-to-market approach with a "fit-for-basin" strategy, and expanding into "horizons of growth" including digital solutions and energy transition technologies positions it well for sustained growth. SLB also highlighted its commitment to sustainability, setting a net-zero emissions target by 2050 and outlining interim milestones for emissions reduction.

Financial Highlights

49 data points
Beta

Revenue

$22.93B

Net Income

$1.88B

8.2% Net Margin

EPS (Diluted)

$1.32

Total Assets

$41.51B

Cash & Equivalents

$1.76B

Free Cash Flow

$3.51B

Financial Statements
Beta
Revenue$22.93B
R&D Expenses$554.00M
Operating Income$3.37B
Interest Expense$539.00M
Net Income$1.88B
EPS (Basic)$1.34
EPS (Diluted)$1.32
Shares Outstanding (Basic)1.40B
Shares Outstanding (Diluted)1.43B

Key Highlights

  • 1Full-year 2021 revenue was $22.9 billion, down 3% year-over-year, largely due to divestitures. Excluding these, revenue grew 3%.
  • 2Second half of 2021 revenue surged 12% year-over-year (18% adjusted for divestitures), signaling a strong recovery in the energy services sector.
  • 3The company expects double-digit revenue growth in both North America and international markets in 2022, driven by favorable industry fundamentals.
  • 4SLB's strategy focuses on strengthening its core business, a "fit-for-basin" go-to-market approach, and expanding into digital and energy transition (Schlumberger New Energy) for future growth.
  • 5A significant focus on sustainability with a commitment to achieve net-zero greenhouse gas emissions by 2050.
  • 6Pretax operating margin for 2021 improved significantly to 15% from 7% in 2020, aided by margin-dilutive divestitures and cost controls.

Frequently Asked Questions

In 2021, SLB reported total revenue of $22.9 billion, a 3% decrease from 2020, primarily due to the divestiture of certain businesses. However, excluding these divestitures, revenue increased by 3%. The company experienced a strong second half of the year, with revenue up 12% year-over-year (18% adjusted for divestitures), reflecting a robust recovery in the energy services market. The pretax operating margin significantly improved to 15% in 2021 from 7% in 2020.

SLB's strategy is centered around three themes: strengthening the core business through customer collaboration and operational efficiency; optimizing its go-to-market strategy with a "fit-for-basin" approach tailored to regional needs; and pursuing "horizons of growth" in areas like digital transformation, production and recovery optimization, and the energy transition, including initiatives in hydrogen, lithium, and carbon capture. The company is also committed to achieving net-zero emissions by 2050.

Key risks identified include the substantial dependence of demand for its products and services on customer expenditures in the oil and gas industry, which are sensitive to oil and gas prices. Other significant risks involve geopolitical and regulatory instability in operating countries, the challenge of adapting to the energy transition, intense competition, cybersecurity threats, and the potential impact of severe weather events on operations. The company also faces risks related to attracting and retaining qualified personnel and the successful execution of its sustainability and emissions reduction goals.

SLB is actively addressing the energy transition by supporting customers in producing oil and gas more efficiently and with a lower carbon footprint, and by investing in new, low-carbon energy technologies. This includes developing businesses in areas such as hydrogen, lithium, energy storage, carbon capture and sequestration (CCS), and geothermal energy through its Schlumberger New Energy division. The company has also committed to reaching net-zero GHG emissions by 2050 and launched its Transition Technologies portfolio to help reduce emissions from oil and gas operations.