Summary
SLB LIMITED/NV (SLB) reported a solid performance for the second quarter and first six months of 2012, demonstrating significant revenue growth and improved profitability compared to the prior year periods. Total revenue for the second quarter rose 16% year-over-year to $10.45 billion, and for the six months ended June 30, 2012, revenue increased 19% to $20.37 billion, reflecting broad-based strength across its operating segments and geographic regions. Net income attributable to Schlumberger for the second quarter was $1.403 billion, a slight increase from $1.339 billion in the same period last year, while for the six-month period, net income grew to $2.703 billion from $2.283 billion in the prior year. The company's performance was driven by increased exploration and development activities globally, particularly in offshore operations and key international markets. The Reservoir Characterization and Drilling Groups showed robust growth, benefiting from higher-margin exploration activities. While the Production Group also saw revenue growth, its margins were impacted by pricing pressures and cost inflation in North America. SLB continued its commitment to returning value to shareholders through share repurchases and dividend payments, while also investing in capital expenditures to support future growth.
Financial Highlights
51 data points| Revenue | $10.34B |
| Cost of Revenue | $8.12B |
| Gross Profit | $2.22B |
| R&D Expenses | $287.00M |
| Operating Income | $2.56B |
| Interest Expense | $78.00M |
| Net Income | $1.40B |
| EPS (Basic) | $1.05 |
| EPS (Diluted) | $1.05 |
| Shares Outstanding (Basic) | 1.33B |
| Shares Outstanding (Diluted) | 1.34B |
Key Highlights
- 1Revenue for the second quarter of 2012 increased by 16% year-over-year to $10.45 billion, and revenue for the six months increased by 19% to $20.37 billion.
- 2Net income attributable to Schlumberger increased to $1.403 billion in Q2 2012 from $1.339 billion in Q2 2011, and to $2.703 billion for the first six months of 2012 from $2.283 billion in the prior year.
- 3Diluted earnings per share for Q2 2012 were $1.05, up from $0.98 in Q2 2011. For the six months, diluted EPS were $2.02, up from $1.67 in the prior year.
- 4The company continued to execute its share repurchase program, spending $823 million in the first six months of 2012.
- 5Capital expenditures increased to $2.08 billion in the first six months of 2012 from $1.72 billion in the same period of 2011, indicating ongoing investment in the business.
- 6Divestiture of the Wilson distribution business was completed in Q2 2012 for $906 million in cash, contributing to cash flow.
- 7Operating margins in Reservoir Characterization and Drilling Groups showed significant improvement, driven by higher-margin exploration activities.