10-QPeriod: Q1 FY2012

SLB LIMITED/NV Quarterly Report for Q1 Ended Mar 31, 2012

Filed April 25, 2012For Securities:SLB

Summary

SLB LIMITED/NV (SLB) reported robust financial performance for the first quarter of 2012, demonstrating significant year-over-year growth. Revenue increased by 22% to $10.61 billion compared to the first quarter of 2011, driven by a 22% surge in Oilfield Services revenue to $9.92 billion. This growth was primarily fueled by increased activity in North America, particularly in Well Services technologies and M-I SWACO operations, as well as improved exploration activities across various geographic segments. Net income attributable to Schlumberger reached $1.30 billion, a substantial increase from $944 million in the prior year period. Earnings per share also saw a notable rise, with basic EPS at $0.98 and diluted EPS at $0.97, up from $0.69 in Q1 2011. The company's strategic focus on expanding exploration and production services appears to be paying off, with strong operational execution across its segments. Despite some sequential quarter-over-quarter declines attributed to typical year-end sales cycles, the year-over-year comparison highlights SLB's strong market position and ability to capitalize on global energy demand.

Financial Highlights

52 data points
Beta

Revenue

$9.92B

21.2% Gross Margin

Net Income

$1.30B

13.1% Net Margin

EPS (Diluted)

$0.97

Total Assets

$56.37B

Cash & Equivalents

$1.35B

Free Cash Flow

-$202.00M

Financial Statements
Beta
Revenue$9.92B
Cost of Revenue$7.81B
Gross Profit$2.11B
R&D Expenses$275.00M
Operating Income$1.28B
Interest Expense$80.00M
Net Income$1.30B
EPS (Basic)$0.98
EPS (Diluted)$0.97
Shares Outstanding (Basic)1.33B
Shares Outstanding (Diluted)1.34B

Key Highlights

  • 1Revenue surged 22% year-over-year to $10.61 billion in Q1 2012.
  • 2Net income attributable to Schlumberger grew significantly to $1.30 billion, up from $944 million in Q1 2011.
  • 3Diluted EPS increased to $0.97 from $0.69 in the prior year's comparable quarter.
  • 4Oilfield Services revenue saw a substantial 22% increase year-over-year, indicating strong demand for core services.
  • 5The company continues to benefit from a strategic geographical diversification, with strong performance across North America, Latin America, and other key regions.
  • 6Capital expenditures increased to $961 million in Q1 2012, signaling investment in future growth and operational capacity.
  • 7The company announced an agreement to sell its Wilson distribution business for approximately $0.8 billion, a subsequent event impacting potential future portfolio composition.

Frequently Asked Questions

The primary driver of SLB's 22% year-over-year revenue growth was a significant increase in Oilfield Services revenue, which rose by 22% to $9.92 billion. This was fueled by higher activity levels in North America, particularly in Well Services technologies and M-I SWACO operations, as well as improved exploration activities across its geographic segments.

SLB demonstrated improved profitability, with net income attributable to Schlumberger increasing to $1.30 billion in Q1 2012 from $944 million in Q1 2011. This resulted in a notable increase in diluted earnings per share, which rose to $0.97 from $0.69 in the prior year.

The announced agreement to sell the Wilson distribution business for approximately $0.8 billion, as a subsequent event after the reporting period, suggests a potential strategic portfolio adjustment. While it was a contributor to revenue in 2011, its divestiture may indicate a focus on core oilfield services operations or a move to streamline the business.

In Q1 2012, SLB generated $732 million in cash flow from operating activities. The company also increased its capital expenditures to $961 million, indicating ongoing investment in its business. Despite these investments and $334 million in dividends paid, SLB maintained a strong liquidity position with $4.1 billion in cash and short-term investments.