10-QPeriod: Q1 FY2023

SLB LIMITED/NV Quarterly Report for Q1 Ended Mar 31, 2023

Filed April 26, 2023For Securities:SLB

Summary

SLB LIMITED/NV (SLB) reported a strong first quarter for 2023, with total revenue reaching $7.74 billion, a significant 30% increase compared to the same period in 2022. Net income attributable to SLB also saw substantial growth, rising to $934 million from $510 million in Q1 2022, translating to a diluted earnings per share of $0.65, up from $0.36 year-over-year. This robust performance was driven by broad-based revenue growth across all reporting segments and geographies, particularly in the Well Construction and Production Systems divisions. The company highlighted a constructive multiyear outlook, with continued strength expected in international and offshore markets due to long-cycle development and capacity expansion projects. While the North American land market might see a plateau, overall global activity is anticipated to remain solid. SLB also reported substantial cash flow from operations of $330 million and continued its share repurchase program, demonstrating a commitment to returning value to shareholders.

Financial Highlights

47 data points
Beta

Revenue

$7.74B

Net Income

$934.00M

12.1% Net Margin

EPS (Diluted)

$0.65

Total Assets

$43.85B

Cash & Equivalents

$1.50B

Free Cash Flow

-$80.00M

Financial Statements
Beta
Revenue$7.74B
R&D Expenses$174.00M
Operating Income$1.39B
Interest Expense$117.00M
Net Income$934.00M
EPS (Basic)$0.65
EPS (Diluted)$0.65
Shares Outstanding (Basic)1.43B
Shares Outstanding (Diluted)1.45B

Key Highlights

  • 1Total revenue increased 30% year-over-year to $7.74 billion.
  • 2Net income attributable to SLB rose to $934 million, up from $510 million in the prior year.
  • 3Diluted earnings per share grew to $0.65 from $0.36 in Q1 2022.
  • 4All core divisions (Reservoir Performance, Well Construction, Production Systems) showed significant revenue growth and margin expansion.
  • 5North America revenue grew 32% year-over-year, marking the eighth consecutive quarter of growth in the region.
  • 6International revenue increased 29% year-over-year, driven by broad-based activity.
  • 7The company returned $230 million to shareholders through its share repurchase program in Q1 2023.

Frequently Asked Questions

SLB demonstrated strong financial performance in Q1 2023, with total revenue increasing 30% year-over-year to $7.74 billion and net income attributable to SLB rising to $934 million. Diluted earnings per share also saw a significant increase to $0.65.

Revenue growth was broad-based across all segments and geographies. Key drivers include increased activity, improved pricing, and technology adoption in the core divisions (Reservoir Performance, Well Construction, and Production Systems). North America and international markets both experienced substantial year-over-year revenue increases.

SLB maintains a constructive multiyear outlook, expecting continued strength in international and offshore markets. While the North American land market might see a plateau, the company anticipates that global activity will remain solid, supported by positive long-term demand outlook for oil and gas, robust investment plans from major E&Ps, and the emergence of gas as a long-term energy transition fuel.

SLB generated $330 million in cash flow from operations in Q1 2023. The company also continued its share repurchase program, buying back $230 million of its common stock in the quarter under its $10 billion program, indicating a commitment to returning capital to shareholders.