8-KEarnings & ResultsRegulation FDExhibits & Filings

SLB LIMITED/NV 8-K Report, Financial Results (Apr 17, 2014)

Filed April 17, 2014For Securities:SLB

Summary

SLB LIMITED/NV (SLB) filed an 8-K on April 17, 2014, primarily to report its first-quarter 2014 financial results. The filing includes a press release and supplemental information detailing the company's performance. Key figures indicate that GAAP income from continuing operations attributable to Schlumberger for Q1 2014 was $1.59 billion, resulting in diluted earnings per share (EPS) of $1.21. This compares to $1.26 in the preceding quarter (Q4 2013) and $0.90 in the first quarter of the prior year (Q1 2013). The report also highlights the company's use of non-GAAP financial measures to provide a clearer operational picture. These include "Net Debt," defined as gross debt less cash and certain investments, which management uses to assess indebtedness. Additionally, the company provides adjusted figures for income, EPS, return on sales, and effective tax rate, excluding charges and credits. For Q1 2014, the company did not record any such charges or credits, meaning its GAAP and adjusted non-GAAP earnings per share from continuing operations were the same at $1.21. Investors should note that these non-GAAP measures are presented alongside GAAP figures and are not intended to substitute for them.

Key Highlights

  • 1SLB reported Q1 2014 GAAP income from continuing operations of $1.59 billion.
  • 2Diluted EPS from continuing operations for Q1 2014 was $1.21.
  • 3This represents a sequential decrease from $1.26 in Q4 2013 but a significant increase from $0.90 in Q1 2013.
  • 4The company utilizes non-GAAP measures like "Net Debt" for enhanced financial insight.
  • 5Non-GAAP earnings per share from continuing operations (excluding charges and credits) were also $1.21 for Q1 2014, as no such items were recorded.
  • 6The filing incorporates by reference the Q1 2014 Results Press Release and Supplemental Information.
  • 7The report includes disclosures on various non-GAAP financial measures aimed at illustrating operational trends, such as Net Debt, and adjusted income/EPS.

Frequently Asked Questions

For the first quarter of 2014, Schlumberger reported GAAP income from continuing operations of $1.59 billion, with diluted earnings per share (EPS) from continuing operations of $1.21. This compares to $1.26 EPS in the fourth quarter of 2013 and $0.90 EPS in the first quarter of 2013.

No, the company explicitly stated that it did not record any charges or credits in the first quarter of 2014. Consequently, its GAAP diluted EPS from continuing operations ($1.21) was the same as its adjusted non-GAAP diluted EPS from continuing operations (excluding charges and credits).

The filing highlights several non-GAAP measures. These include 'Net Debt' (gross debt less cash and certain investments) to provide insight into indebtedness. Other measures include adjusted income from continuing operations, adjusted diluted EPS, adjusted pretax and after-tax return on sales, and adjusted effective tax rate, all excluding charges and credits. Management uses these to better evaluate operational performance and trends.

The detailed financial results are presented in the "First-Quarter 2014 Results Press Release" and "First-Quarter 2014 Results — Supplemental Information," which are furnished as exhibits (Exhibit 99.1 and Exhibit 99.2) with this Form 8-K and incorporated by reference.