How did the company's revenue performance compare year-over-year, and what were the key geographical drivers?

Total revenue for the second quarter of 2013 increased by 8% to $11.18 billion compared to the same period in 2012. International Area revenue grew by 12%, outpacing North America, which remained relatively flat. Key international growth drivers included robust exploration and development activities in the Middle East & Asia, Sub-Saharan Africa, Russia, and Latin America.

What is the status of the company's share repurchase program?

SLB continued its share repurchase program during the first six months of 2013. As of June 30, 2013, $0.2 billion remained available under an existing $8 billion program. Furthermore, on July 18, 2013, the Board approved a new $10 billion share repurchase program to be completed by June 30, 2018.

Were there any significant charges or credits impacting the financial results?

Yes, in addition to the gain on OneSubsea, SLB recorded impairment charges related to investments in drilling technology and a contract drilling business totaling $364 million pretax in the second quarter of 2013. A foreign currency devaluation loss in Venezuela of $92 million pretax was also recorded in the first quarter of 2013.

SLB 10-Q Quarterly Report Q2 FY2013 — Revenue, Net Income, EPS

Q: What was the main driver of the significant increase in net income for the second quarter of 2013?

The primary driver of the substantial increase in net income was a one-time gain of $1.028 billion recognized from the formation of the OneSubsea joint venture with Cameron International Corporation. This gain resulted from the deconsolidation of SLB's subsea business.

Summary

SLB Limited/NV (SLB) reported strong financial results for the second quarter and first six months of 2013. Revenue increased year-over-year, driven by robust international activity across its Reservoir Characterization and Drilling segments. The company also benefited from a significant one-time gain from the formation of the OneSubsea joint venture with Cameron International Corporation. Despite some localized challenges and pricing pressures in specific markets, SLB demonstrated resilience and growth, particularly in its international operations. Net income saw a substantial increase, primarily due to the substantial gain from the OneSubsea formation. Diluted earnings per share also showed a significant improvement compared to the prior year. The company's cash flow from operations remained strong, and it continued its share repurchase program, underscoring its commitment to returning value to shareholders. SLB's management highlighted the positive impact of exploration and development activities on its performance, especially in key international regions.

Financial Highlights

50 data points

Beta

Revenue

$11.18B

0.2% Gross Margin

Net Income

$2.10B

0.2% Net Margin

EPS (Diluted)

$1.57

Total Assets

$63.25B

Cash & Equivalents

$2.59B

Free Cash Flow

$1.75B

Financial Statements

Beta

Revenue	$11.18B
Cost of Revenue	$8.71B
Gross Profit	$2.47B
R&D Expenses	$293.00M
Operating Income	$3.42B
Interest Expense	$98.00M
Net Income	$2.10B
EPS (Basic)	$1.58
EPS (Diluted)	$1.57
Shares Outstanding (Basic)	1.33B
Shares Outstanding (Diluted)	1.34B

Key Highlights

1Revenue increased by 8% year-over-year to $11.18 billion in Q2 2013, driven by international growth.
2Net income attributable to Schlumberger was $2.095 billion in Q2 2013, a significant increase from $1.403 billion in Q2 2012, boosted by a $1.028 billion gain from the formation of the OneSubsea joint venture.
3Diluted earnings per share were $1.57 in Q2 2013, up from $1.05 in Q2 2012.
4The company's operating segments, particularly Reservoir Characterization and Drilling, showed strong revenue and income growth, driven by international exploration and development activities.
5Cash flow from operating activities was $3.428 billion for the first six months of 2013, a substantial increase from $1.397 billion in the prior year's comparable period.
6SLB continued its share repurchase program, returning capital to shareholders, and announced a new $10 billion repurchase program.
7Discontinued operations related to the wind-down of Iran business and the sale of the Distribution segment resulted in a net loss for the period.

SLB LIMITED/NV Quarterly Report for Q2 Ended Jun 30, 2013

Summary

Financial Highlights

Key Highlights

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