10-QPeriod: Q2 FY2023

SLB LIMITED/NV Quarterly Report for Q2 Ended Jun 30, 2023

Filed July 26, 2023For Securities:SLB

Summary

SLB Limited/NV (SLB) reported strong financial performance for the second quarter and first six months of 2023, demonstrating significant year-over-year revenue growth and improved profitability. Total revenue for the second quarter reached $8.1 billion, a 19.6% increase compared to the same period last year, driven primarily by robust international and offshore activity, particularly in the Middle East & Asia and Europe & Africa regions. This growth was led by the Well Construction and Production Systems segments, reflecting strong upstream investment momentum and SLB's strategic positioning. The company's profitability also saw a substantial improvement, with Net Income Attributable to SLB rising to $1.03 billion in Q2 2023 from $959 million in Q2 2022, and diluted earnings per share increasing to $0.72 from $0.67. For the six-month period, Net Income Attributable to SLB grew to $1.97 billion from $1.47 billion in the prior year. This performance was underpinned by strong execution, margin expansion across key segments, and effective cost management. SLB generated significant free cash flow and maintained a healthy liquidity position, underscoring its financial resilience and ability to return value to shareholders through dividends and share repurchases.

Financial Highlights

47 data points
Beta

Revenue

$8.10B

Net Income

$1.03B

12.8% Net Margin

EPS (Diluted)

$0.72

Total Assets

$44.83B

Cash & Equivalents

$1.93B

Free Cash Flow

$1.14B

Financial Statements
Beta
Revenue$8.10B
R&D Expenses$163.00M
Operating Income$1.58B
Interest Expense$127.00M
Net Income$1.03B
EPS (Basic)$0.73
EPS (Diluted)$0.72
Shares Outstanding (Basic)1.42B
Shares Outstanding (Diluted)1.44B

Key Highlights

  • 1Total revenue for Q2 2023 was $8.1 billion, up 19.6% year-over-year, with international markets showing particularly strong growth.
  • 2Net income attributable to SLB for Q2 2023 was $1.03 billion, an increase from $959 million in Q2 2022.
  • 3Diluted earnings per share rose to $0.72 in Q2 2023, up from $0.67 in the prior year's second quarter.
  • 4For the first six months of 2023, revenue grew 24% to $15.8 billion, and net income attributable to SLB increased to $1.97 billion from $1.47 billion in the same period of 2022.
  • 5The company generated $1.94 billion in cash flow from operating activities for the first six months of 2023, a significant increase from $539 million in the prior year.
  • 6SLB returned capital to shareholders through $605 million in dividends paid and $443 million in stock repurchases during the first six months of 2023.
  • 7The company noted that Russia represented approximately 5% of worldwide revenue in the first six months of 2023 and that it was halting shipments into Russia.

Frequently Asked Questions

SLB reported total revenue of $8.1 billion for the second quarter of 2023, representing a 19.6% increase compared to the same period in 2022. The primary drivers for this growth were strong performance in international markets, particularly in the Middle East & Asia and Europe & Africa regions, fueled by resilient long-cycle offshore developments, production capacity expansions, and increased exploration and appraisal activities. The Well Construction and Production Systems segments showed notable revenue increases.

SLB's profitability improved significantly in the second quarter of 2023. Net income attributable to SLB increased to $1.03 billion from $959 million in the second quarter of 2022. Correspondingly, diluted earnings per share rose to $0.72 from $0.67. This improvement was driven by higher revenues, margin expansion across segments, and efficient operations, especially in international and offshore markets.

SLB maintains a strong liquidity position. As of June 30, 2023, the company had $3.19 billion in cash and short-term investments and $6.57 billion in available and unused committed credit facilities. For the first six months of 2023, cash flow from operations was $1.94 billion, and free cash flow was $721 million. The company also continued its capital return program, paying $605 million in dividends and repurchasing $443 million of stock.

SLB has halted shipments of products and technology into Russia from all its global facilities. Russia accounted for approximately 5% of SLB's worldwide revenue during the first six months of 2023. The net assets in Russia were approximately $0.7 billion as of June 30, 2023. The company continues to monitor the situation and its potential impact on global economic and geopolitical conditions, as well as its own operations.