10-QPeriod: Q1 FY2013

SLB LIMITED/NV Quarterly Report for Q1 Ended Mar 31, 2013

Filed April 24, 2013For Securities:SLB

Summary

SLB LIMITED/NV (SLB) reported its first-quarter 2013 results, showcasing a slight increase in revenue and a marginal decrease in net income compared to the same period in the prior year. Total revenue for the quarter reached $10.7 billion, up from $9.9 billion in Q1 2012, driven by strong international performance across its oilfield services segments. Net income attributable to Schlumberger was $1.3 billion, or $0.94 per diluted share, compared to $1.3 billion, or $0.97 per diluted share, in the prior year's first quarter. The company experienced a notable foreign currency loss of $92 million due to the devaluation of the Venezuelan currency, impacting profitability. Operationally, SLB demonstrated solid execution with revenue growth in international markets, particularly in the Middle East & Asia and Europe/CIS/Africa regions, which offset a decline in North America revenue. The company's strong cash flow from operations provided ample liquidity, with significant share repurchases continuing under its approved program. Management remains focused on operational efficiency and strategic growth initiatives while navigating geopolitical and currency-related challenges.

Financial Highlights

50 data points
Beta

Revenue

$10.57B

20.4% Gross Margin

Net Income

$1.26B

11.9% Net Margin

EPS (Diluted)

$0.94

Total Assets

$61.43B

Cash & Equivalents

$2.13B

Free Cash Flow

$244.00M

Financial Statements
Beta
Revenue$10.57B
Cost of Revenue$8.41B
Gross Profit$2.16B
R&D Expenses$292.00M
Operating Income$1.20B
Interest Expense$98.00M
Net Income$1.26B
EPS (Basic)$0.95
EPS (Diluted)$0.94
Shares Outstanding (Basic)1.33B
Shares Outstanding (Diluted)1.34B

Key Highlights

  • 1Revenue for Q1 2013 increased by 7.6% to $10.67 billion compared to $9.92 billion in Q1 2012.
  • 2Net income attributable to Schlumberger decreased slightly to $1.26 billion ($0.94 diluted EPS) from $1.30 billion ($0.97 diluted EPS) in the prior year's quarter.
  • 3A significant foreign currency loss of $92 million was recorded due to the devaluation of the Venezuelan Bolivar.
  • 4International revenue grew by 13% year-over-year, driven by strong performance in the Middle East & Asia and Europe/CIS/Africa.
  • 5North America revenue declined by 4% year-over-year, primarily due to weakness in land-based activities.
  • 6The company continued its share repurchase program, spending $193 million in Q1 2013.
  • 7Cash flow from operating activities improved to $1.12 billion from $0.76 billion in the prior year's quarter.

Frequently Asked Questions

SLB's revenue increased by approximately 7.6% to $10.67 billion in the first quarter of 2013, up from $9.92 billion in the same period of 2012. Net income attributable to Schlumberger saw a slight decrease, falling to $1.26 billion ($0.94 per diluted share) in Q1 2013 from $1.30 billion ($0.97 per diluted share) in Q1 2012.

The company recorded a pre-tax foreign currency loss of $92 million in the first quarter of 2013 due to the devaluation of the Venezuelan currency. This charge negatively impacted the reported income.

International revenue experienced robust growth of 13% year-over-year, led by strong performance in the Middle East & Asia and Europe/CIS/Africa regions. Conversely, North America revenue declined by 4% year-over-year, primarily driven by weaker land-based activity and pricing pressures.

SLB continued its share repurchase program in the first quarter of 2013, spending $193 million to buy back its own stock. This reflects the company's ongoing commitment to returning capital to shareholders.