10-QPeriod: Q1 FY2022

SLB LIMITED/NV Quarterly Report for Q1 Ended Mar 31, 2022

Filed April 27, 2022For Securities:SLB

Summary

Schlumberger Limited (SLB) reported a strong first quarter for 2022, demonstrating significant year-over-year revenue growth of 14%. This increase was driven by robust performance across its Well Construction and Reservoir Performance segments, which saw growth exceeding 20%. The company's digital transformation efforts and increased adoption of advanced technologies are contributing to this positive momentum. Despite global macroeconomic headwinds and the ongoing conflict in Ukraine, which impacted operations in Russia (representing approximately 5% of Q1 2022 revenue), SLB maintains a positive outlook. Management expects sequential revenue growth in the second quarter and significant expansion in the second half of 2022, projecting full-year revenue growth in the mid-teens. This optimism is supported by anticipated increases in both short- and long-cycle investments within the oil and gas industry, along with favorable pricing trends.

Financial Highlights

46 data points
Beta

Revenue

$5.96B

Net Income

$510.00M

8.6% Net Margin

EPS (Diluted)

$0.36

Total Assets

$41.97B

Cash & Equivalents

$1.60B

Free Cash Flow

-$173.00M

Financial Statements
Beta
Revenue$5.96B
R&D Expenses$141.00M
Operating Income$894.00M
Interest Expense$123.00M
Net Income$510.00M
EPS (Basic)$0.36
EPS (Diluted)$0.36
Shares Outstanding (Basic)1.41B
Shares Outstanding (Diluted)1.43B

Key Highlights

  • 1Total revenue for Q1 2022 reached $5.96 billion, a 14% increase compared to $5.22 billion in Q1 2021.
  • 2Net income attributable to Schlumberger was $510 million ($0.36 per diluted share), up from $299 million ($0.21 per diluted share) in Q1 2021.
  • 3Well Construction and Reservoir Performance segments showed strong year-over-year revenue growth of 24% and 21%, respectively.
  • 4Geographic revenue growth was broad-based, with North America up 32% and International up 10%.
  • 5The company announced a 40% increase in its quarterly cash dividend, raising it from $0.125 to $0.175 per share.
  • 6Schlumberger suspended new investment and technology deployment in Russia due to the ongoing conflict in Ukraine.
  • 7Free cash flow for the quarter was negative at $(381) million, primarily due to increased working capital investment and capital expenditures.

Frequently Asked Questions

In the first quarter of 2022, Schlumberger reported total revenue of $5.96 billion, a 14% increase year-over-year. Net income attributable to Schlumberger was $510 million, or $0.36 per diluted share, compared to $299 million, or $0.21 per diluted share, in the same period of 2021. This growth was driven by strong performance in key segments and broad-based geographic expansion.

Schlumberger has suspended new investment and technology deployment to its Russia operations, which represented approximately 5% of its worldwide revenue in Q1 2022. The company is closely monitoring the situation and its potential impact on global economic conditions, sanctions, and supply chains. While the full extent of the impact is uncertain, it could lead to asset write-downs.

Schlumberger maintains a positive outlook, expecting sequential revenue growth in Q2 2022 and significant growth in the second half of the year, leading to a projected full-year revenue increase in the mid-teens. This optimism is based on anticipated acceleration in both short- and long-cycle investments in the oil and gas sector, increased technology adoption, and favorable pricing momentum.

Yes, Schlumberger's Board of Directors approved a 40% increase in the quarterly cash dividend, raising it from $0.125 per share to $0.175 per share, effective for the dividend payable on July 14, 2022.