Summary
SLB Limited/NV (SLB) filed an 8-K on April 4, 2005, to disclose information presented by its Chairman and CEO, Andrew Gould, at the Howard Weil Energy Conference. The report includes a presentation (Exhibit 99.1) that details financial results and utilizes non-GAAP financial measures such as net debt and Return on Capital Employed (ROCE). These additional metrics are provided to offer investors a clearer view of the company's leverage and capital efficiency. The company has made significant strides in reducing its net debt, moving from $(5,021) million in December 2002 to $(1,459) million as of December 31, 2004. This deleveraging has been driven by various factors including proceeds from business divestitures and equity issuances, alongside capital expenditures and stock repurchases. Concurrently, SLB has demonstrated a strong improvement in its ROCE, particularly when excluding charges, with the annualized figure rising from 6% in 2002 to 16% in 2004, indicating enhanced value creation for its capital providers.
Key Highlights
- 1SLB's Chairman and CEO presented at the Howard Weil Energy Conference on April 4, 2005.
- 2The filing includes a presentation with non-GAAP financial measures: Net Debt and Return on Capital Employed (ROCE).
- 3Net debt has significantly decreased from $(5,021) million at the end of 2002 to $(1,459) million by the end of 2004.
- 4The reduction in net debt was influenced by divestitures, stock plans, and share sales, offset by capital expenditures and stock repurchases.
- 5Annualized ROCE (including charges) improved from 4% in 2002 to 14% in 2004.
- 6Annualized ROCE (excluding charges) showed substantial growth, increasing from 6% in 2002 to 16% in 2004.
- 7The presentation provided forward-looking statements regarding business outlook, industry trends, and financial expectations.