Summary
SLB LIMITED/NV (SLB) reported its second-quarter and first-half 2014 financial results, showcasing revenue growth and improved profitability compared to the prior year. For the second quarter of 2014, revenue reached $12.05 billion, an 8% increase year-over-year, driven by strong performance in North America and international markets. Net income attributable to Schlumberger for the quarter was $1.595 billion, a decrease from $2.095 billion in the prior year, largely due to the absence of a significant one-time gain from the OneSubsea joint venture formation in Q2 2013. The company demonstrated solid operational execution, with pretax operating income increasing by 15% year-over-year to $2.62 billion in the second quarter. This improvement was supported by robust demand across its Reservoir Characterization, Drilling, and Production segments, with particular strength noted in international markets like the Middle East & Asia and Europe/CIS/Africa. Management's focus on operational efficiency and technological innovation appears to be driving these positive results, although North American margins faced pressure from commodity inflation.
Financial Highlights
50 data points| Revenue | $12.05B |
| Cost of Revenue | $9.27B |
| Gross Profit | $2.79B |
| R&D Expenses | $309.00M |
| Operating Income | $3.39B |
| Interest Expense | $90.00M |
| Net Income | $1.59B |
| EPS (Basic) | $1.23 |
| EPS (Diluted) | $1.21 |
| Shares Outstanding (Basic) | 1.30B |
| Shares Outstanding (Diluted) | 1.31B |
Key Highlights
- 1Revenue for Q2 2014 increased by 8% to $12.05 billion compared to Q2 2013, indicating strong top-line growth.
- 2Pretax operating income for Q2 2014 rose 15% year-over-year to $2.62 billion, demonstrating improved operational profitability.
- 3Net income attributable to Schlumberger for Q2 2014 was $1.595 billion, a decrease from $2.095 billion in Q2 2013, impacted by the prior year's gain from the OneSubsea joint venture formation.
- 4Diluted earnings per share for Q2 2014 were $1.21, down from $1.57 in Q2 2013, primarily due to the prior year's significant one-time gain.
- 5North America revenue grew significantly by 16% year-over-year, driven by land-based activity and market share gains, while international revenue saw a more modest 5% increase.
- 6The company generated strong free cash flow of $1.9 billion in the first six months of 2014, up from $1.4 billion in the same period of 2013.
- 7A provision of $205 million was recorded in 'Loss from discontinued operations' during Q2 2014 related to discussions with governmental authorities regarding historical operations in certain sanctioned countries.