8-KEarnings & ResultsExhibits & Filings

SLB LIMITED/NV 8-K Report, Financial Results (Jul 20, 2007)

Filed July 20, 2007For Securities:SLB

Summary

SLB LIMITED/NV (SLB) filed a Form 8-K on July 20, 2007, to report on its second-quarter 2007 financial results. The filing primarily serves to furnish the company's second-quarter earnings press release and supplemental information, which were made available on the company's investor relations website. Investors should note that the provided documents include both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures. The non-GAAP measures disclosed are Net Debt, Net Income before charges and credits, diluted earnings per share before charges and credits, effective tax rate before charges and credits, and Return on Capital Employed (ROCE). SLB management believes these non-GAAP metrics offer valuable insights into the company's operational performance and financial health by allowing for a more effective period-over-period comparison and by reflecting trends that might otherwise be obscured by specific charges or credits. Investors are advised to consider these non-GAAP measures in conjunction with, rather than as a replacement for, GAAP-based financial figures.

Key Highlights

  • 1SLB reported its Second-Quarter 2007 financial results.
  • 2The company furnished its Second-Quarter 2007 Press Release and Supplemental Information as exhibits.
  • 3Key non-GAAP financial measures were disclosed: Net Debt, Net Income, diluted EPS, and effective tax rate before charges and credits.
  • 4Return on Capital Employed (ROCE) was also presented as a non-GAAP metric.
  • 5Management believes these non-GAAP measures provide enhanced insights into operational performance and trends.
  • 6The disclosure emphasizes that non-GAAP measures should be considered alongside, not in lieu of, GAAP financial results.
  • 7The Chief Accounting Officer, Howard Guild, signed the report.

Frequently Asked Questions

The primary purpose of this Form 8-K filing is to report and provide investors with SLB's financial results for the second quarter of 2007. It includes the company's earnings press release and supplemental financial information, which were made public on the company's investor relations website.

SLB disclosed several non-GAAP financial measures, including Net Debt (gross debt less cash and certain investments), Net Income before charges and credits, diluted earnings per share before charges and credits, effective tax rate before charges and credits, and Return on Capital Employed (ROCE). The company believes these metrics offer a clearer view of operational performance and trends.

SLB states that these non-GAAP measures should be considered in addition to, and not as a substitute for, or superior to, financial measures prepared in accordance with GAAP. Management uses them to evaluate operations more effectively and identify trends. Investors are encouraged to review the full financial statements and other SEC filings for a complete understanding, which includes GAAP-based figures.

The detailed financial results are contained within the "Second-Quarter 2007 Press Release" (Exhibit 99.1) and "Supplemental Information regarding Second-Quarter 2007 Results" (Exhibit 99.2) that were furnished as part of this Form 8-K filing. These documents were also available on SLB's investor relations website (www.slb.com/ir) as of July 20, 2007.