10-QPeriod: Q3 FY2022

SLB LIMITED/NV Quarterly Report for Q3 Ended Sep 30, 2022

Filed October 26, 2022For Securities:SLB

Summary

SLB Limited/NV (SLB) reported strong financial results for the third quarter and the first nine months of 2022, indicating a robust recovery and growth in the oilfield services sector. The company demonstrated significant year-over-year and sequential revenue increases, driven by heightened global activity, particularly in international markets and offshore operations. Profitability also improved, with notable margin expansion across several key segments, reflecting effective operational execution and a favorable pricing environment. This performance underscores SLB's strategic positioning in a supply-constrained energy market with increasing demand. Key financial takeaways include substantial growth in total revenue, which reached $7.48 billion for the third quarter and $20.21 billion for the nine-month period, representing significant increases compared to the prior year. Net income attributable to Schlumberger also saw a strong uplift, demonstrating the company's ability to translate top-line growth into bottom-line results. The company's balance sheet remains solid, with ample liquidity to support ongoing operations and strategic investments, alongside a commitment to returning capital to shareholders through dividends. SLB's performance signals positive momentum and resilience amidst global economic uncertainties.

Financial Highlights

46 data points
Beta

Revenue

$7.48B

Net Income

$907.00M

12.1% Net Margin

EPS (Diluted)

$0.63

Total Assets

$44.09B

Cash & Equivalents

$2.18B

Free Cash Flow

$1.19B

Financial Statements
Beta
Revenue$7.48B
R&D Expenses$160.00M
Operating Income$1.40B
Interest Expense$122.00M
Net Income$907.00M
EPS (Basic)$0.64
EPS (Diluted)$0.63
Shares Outstanding (Basic)1.42B
Shares Outstanding (Diluted)1.44B

Key Highlights

  • 1Total revenue for the third quarter of 2022 increased by 27.9% to $7.48 billion, up from $5.85 billion in the third quarter of 2021.
  • 2Net income attributable to Schlumberger for the third quarter of 2022 was $907 million, a significant increase from $550 million in the same period of 2021.
  • 3Diluted income per share for the third quarter of 2022 was $0.63, compared to $0.39 in the third quarter of 2021.
  • 4Revenue for the nine months ended September 30, 2022, grew by 21% to $20.21 billion, up from $16.70 billion in the comparable 2021 period.
  • 5Pretax segment operating income for the nine months of 2022 was $3.45 billion, a substantial increase from $2.38 billion in the prior year, indicating improved operational efficiency and profitability.
  • 6The company reported strong sequential revenue growth of 10% in the third quarter of 2022, driven by international activity and improved pricing.
  • 7SLB announced a 40% increase in its quarterly cash dividend to $0.175 per share in April 2022, reflecting confidence in its financial position and commitment to shareholder returns.

Frequently Asked Questions

SLB's revenue growth in the third quarter of 2022 was primarily driven by a strengthening global energy market, particularly robust international activity and offshore operations. The company experienced increased demand across its service segments, supported by a favorable pricing environment and a global need for increased energy supply.

Profitability saw a significant improvement. Net income attributable to Schlumberger for the third quarter of 2022 increased to $907 million from $550 million in the third quarter of 2021. This was accompanied by an expansion in pretax operating margins across several key segments, reflecting improved operational leverage and pricing power.

SLB maintains a strong liquidity position with $3.61 billion in cash and short-term investments as of September 30, 2022. The company also has access to significant unused committed credit facilities. Management believes these resources are sufficient to meet future business requirements for at least the next 12 months, supported by positive operational momentum and a constructive energy market outlook.

The filing mentions the suspension of new investment and technology deployment in Russia, which represented approximately 6% of SLB's worldwide revenue for the first nine months of 2022. The company continues to monitor the situation in Ukraine and comply with sanctions, noting that the conflict could impact global economic and geopolitical conditions and supply chains. SLB also highlighted currency control limitations in Argentina and potential foreign exchange losses.