10-QPeriod: Q3 FY2013

SLB LIMITED/NV Quarterly Report for Q3 Ended Sep 30, 2013

Filed October 23, 2013For Securities:SLB

Summary

Schlumberger (SLB) reported strong third-quarter 2013 financial results, demonstrating robust growth in revenue and income compared to both the prior quarter and the same period last year. The company's revenue reached $11.6 billion, an 11% increase year-over-year, driven by strong performance across its Reservoir Characterization, Drilling, and Production segments. Net income attributable to Schlumberger was $1.715 billion, a significant improvement from $1.424 billion in the third quarter of 2012. The company's international operations showed particular strength, with revenue up 12% year-over-year, led by the Middle East & Asia and Europe/CIS/Africa regions. North America also saw a healthy 9% increase in revenue, supported by offshore activities and improved efficiency in land operations, despite some pricing weakness. Key strategic initiatives, such as the formation of the OneSubsea joint venture, are contributing to the company's overall performance and strategic positioning in the subsea market.

Financial Highlights

50 data points
Beta

Revenue

$11.61B

23.1% Gross Margin

Net Income

$1.72B

14.8% Net Margin

EPS (Diluted)

$1.29

Total Assets

$65.12B

Cash & Equivalents

$3.15B

Free Cash Flow

$1.82B

Financial Statements
Beta
Revenue$11.61B
Cost of Revenue$8.93B
Gross Profit$2.68B
R&D Expenses$286.00M
Operating Income$5.14B
Interest Expense$98.00M
Net Income$1.72B
EPS (Basic)$1.30
EPS (Diluted)$1.29
Shares Outstanding (Basic)1.32B
Shares Outstanding (Diluted)1.33B

Key Highlights

  • 1Revenue for Q3 2013 increased to $11.61 billion, up 11% year-over-year, from $10.50 billion in Q3 2012.
  • 2Net income attributable to Schlumberger for Q3 2013 was $1.715 billion, up from $1.424 billion in Q3 2012, representing a 20% increase.
  • 3Diluted earnings per share (EPS) for Q3 2013 was $1.29, a significant increase from $1.07 in Q3 2012.
  • 4The company reported a substantial gain of $1.028 billion on the formation of the OneSubsea joint venture in Q2 2013, which boosted year-to-date net income.
  • 5International revenue grew 12% year-over-year, outpacing North America's 9% growth, highlighting the company's strong global presence.
  • 6Operating margins showed improvement, with the consolidated pretax operating margin increasing to 21.5% in Q3 2013, up from 19.8% in Q3 2012.
  • 7Schlumberger continued its capital return program, repurchasing approximately $833 million of its common stock during the third quarter of 2013.

Frequently Asked Questions

The formation of the OneSubsea joint venture with Cameron International Corporation in the second quarter of 2013 resulted in a significant pretax gain of $1.028 billion for Schlumberger. This gain was recognized due to the deconsolidation of Schlumberger's subsea business and contributed positively to the company's year-to-date net income.

Schlumberger experienced strong growth across its international operations, with revenue increasing by 12% year-over-year. The Middle East & Asia region saw a 25% increase, and Europe/CIS/Africa increased by 7%. North America also grew by 9%, driven by offshore activities and improved land efficiencies, though pricing weakness persisted in some land services.

For the full year 2013, Schlumberger expected capital expenditures to be approximately $3.9 billion, a decrease from approximately $4.7 billion in 2012. This indicates a measured approach to investment, balancing growth opportunities with capital discipline.

Yes, the filing notes that Schlumberger has experienced delays in payments from OGX Petroleo e Gas SA, a customer in Brazil, which is currently facing liquidity issues. As of September 30, 2013, Schlumberger had approximately $195 million in outstanding receivables from OGX, the ultimate outcome of which is uncertain and could lead to future write-offs.