10-QPeriod: Q3 FY2014

SLB LIMITED/NV Quarterly Report for Q3 Ended Sep 30, 2014

Filed October 22, 2014For Securities:SLB

Summary

SLB LIMITED/NV (SLB) reported strong financial performance for the third quarter and first nine months of 2014, with revenues and income from continuing operations showing significant year-over-year growth. Revenue for the third quarter increased by 9% to $12.6 billion, and pretax operating income rose by 12% to $2.8 billion compared to the prior year's quarter. This growth was driven by increased activity across its geographic segments, particularly in North America and the Middle East & Asia, and strength in its Drilling and Production groups. The company demonstrated robust operational efficiency and profitability, with pretax operating margins improving globally. Despite some regional challenges like weather disruptions in North America and sanctions impacting operations in Russia, SLB's diversified business model and technological leadership supported its financial results. The company also continued its commitment to returning capital to shareholders through share repurchases and dividends, while actively managing its capital expenditures and debt.

Financial Highlights

50 data points
Beta

Revenue

$12.65B

23.4% Gross Margin

Net Income

$1.95B

15.4% Net Margin

EPS (Diluted)

$1.49

Total Assets

$68.32B

Cash & Equivalents

$3.12B

Free Cash Flow

$2.08B

Financial Statements
Beta
Revenue$12.65B
Cost of Revenue$9.69B
Gross Profit$2.96B
R&D Expenses$301.00M
Operating Income$5.34B
Interest Expense$90.00M
Net Income$1.95B
EPS (Basic)$1.51
EPS (Diluted)$1.49
Shares Outstanding (Basic)1.29B
Shares Outstanding (Diluted)1.31B

Key Highlights

  • 1Revenue for Q3 2014 increased 9% year-over-year to $12.6 billion, and for the nine months ended Sept. 30, 2014, revenue grew 8% to $35.9 billion.
  • 2Net income attributable to Schlumberger for Q3 2014 was $1.949 billion, a significant increase from $1.715 billion in Q3 2013.
  • 3Diluted EPS for Q3 2014 was $1.49, up from $1.29 in Q3 2013.
  • 4Pretax operating income for Q3 2014 increased 12% year-over-year to $2.8 billion.
  • 5North America revenue saw a substantial 18% increase year-over-year in Q3 2014, driven by land operations.
  • 6The company repurchased $3.58 billion of stock in the first nine months of 2014, accelerating its $10 billion share repurchase program.
  • 7SLB maintained a strong cash flow from operations, generating $7.3 billion in the first nine months of 2014.

Frequently Asked Questions

SLB reported strong financial performance in the third quarter of 2014. Revenue increased by 9% year-over-year to $12.6 billion, and pretax operating income grew by 12% to $2.8 billion. Net income attributable to Schlumberger was $1.949 billion, and diluted earnings per share (EPS) were $1.49.

All geographic segments showed revenue growth compared to the prior year's third quarter. North America revenue increased significantly by 18%, driven by land operations. International Areas revenue grew by 5%, with notable contributions from the Middle East & Asia and Europe/CIS/Africa regions.

SLB remains committed to returning capital to shareholders. During the first nine months of 2014, the company repurchased $3.58 billion of its stock, accelerating its $10 billion share repurchase program. It also continued to pay dividends.

For the first nine months of 2013, SLB recorded significant charges and credits, including a $1.028 billion gain from the formation of the OneSubsea joint venture, impairment charges, and a currency devaluation loss in Venezuela. For the first nine months of 2014, there were no such significant charges or credits recorded in continuing operations.