Summary
SLB LIMITED/NV (SLB) reported strong financial results for the second quarter and the first six months of 2022, showcasing significant year-over-year and sequential growth. Total revenue reached $6.77 billion in Q2 2022, up 20% from the prior year, and $12.74 billion for the first six months, up 17% year-over-year. This growth was driven by increased activity across all divisions, both internationally and in North America, coupled with favorable pricing dynamics. Net income attributable to Schlumberger was $959 million for the quarter, a substantial increase from $431 million in Q2 2021, and $1.47 billion for the six-month period, up from $730 million in the prior year. Diluted EPS was $0.67 for the quarter and $1.02 for the six months, reflecting improved profitability. The company highlighted operational strengths, with all divisions experiencing revenue growth and margin expansion, particularly in the Well Construction and Digital & Integration segments. The company also benefited from significant non-recurring items, including gains from the sale of Liberty shares and real estate, contributing to higher reported income. Management expressed optimism for continued upstream E&P spending growth, expecting resilient global oil and gas activity. SLB also announced a 40% increase in its quarterly cash dividend, signaling confidence in its financial health and commitment to shareholder returns.
Financial Highlights
46 data points| Revenue | $6.77B |
| R&D Expenses | $154.00M |
| Operating Income | $1.16B |
| Interest Expense | $124.00M |
| Net Income | $959.00M |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 1.41B |
| Shares Outstanding (Diluted) | 1.44B |
Key Highlights
- 1Robust revenue growth: Total revenue increased by 20% year-over-year to $6.77 billion in Q2 2022 and by 17% for the six months ended June 30, 2022, reaching $12.74 billion.
- 2Significant net income improvement: Net income attributable to Schlumberger more than doubled year-over-year to $959 million in Q2 2022 and $1.47 billion for the six-month period.
- 3Strong EPS performance: Diluted EPS rose to $0.67 in Q2 2022 from $0.30 in the prior year, and $1.02 for the six months from $0.51.
- 4Broad-based segment growth: All four operating divisions (Digital & Integration, Reservoir Performance, Well Construction, Production Systems) reported revenue growth and margin expansion.
- 5Positive outlook for E&P spending: Management anticipates continued upstream E&P spending growth, supported by energy security needs and favorable break-even prices.
- 6Shareholder returns: The company increased its quarterly cash dividend by 40% to $0.175 per share.
- 7Strategic asset sales: Gains from the sale of Liberty shares ($242 million) and real estate ($43 million) contributed significantly to 'Interest & other income' in the first six months of 2022.