8-KEarnings & ResultsRegulation FDExhibits & Filings

SLB LIMITED/NV 8-K Report, Financial Results (Jul 16, 2015)

Filed July 16, 2015For Securities:SLB

Summary

SLB Limited/NV (SLB) filed an 8-K on July 16, 2015, to report its Second-Quarter 2015 financial results. The filing primarily references a press release and supplemental information (Exhibit 99.1) that contains both GAAP and non-GAAP financial measures. Investors should note the company's reported GAAP income from continuing operations attributable to Schlumberger was $1.12 billion for Q2 2015, a decrease from $1.80 billion in Q2 2014, with diluted EPS from continuing operations at $0.88 compared to $1.37 in the prior year's quarter. The report also introduces and defines several non-GAAP financial measures that management uses for operational evaluation, including Net Debt, adjusted income measures (excluding charges and credits), and Free Cash Flow. The company emphasized that these non-GAAP measures are supplementary to GAAP figures and should not be considered a substitute for them. The primary driver for this filing is the disclosure of the company's operational and financial performance for the second quarter of 2015.

Key Highlights

  • 1SLB reported Q2 2015 GAAP income from continuing operations of $1.12 billion.
  • 2Q2 2015 diluted EPS from continuing operations was $0.88, down from $1.37 in Q2 2014.
  • 3The filing provides definitions for key non-GAAP financial measures used by management, including Net Debt, adjusted income/EPS, and Free Cash Flow.
  • 4Management uses non-GAAP measures to better evaluate operational trends period-over-period.
  • 5Free Cash Flow is defined as cash flow from operations less capital expenditures, SPM investments, and capitalized multiclient seismic data.
  • 6The information was furnished via Exhibit 99.1, a Second-Quarter 2015 Results Press Release and Supplemental Information.
  • 7The report clarifies that the disclosed information, while important, is not deemed "filed" for Section 18 purposes unless expressly incorporated into other filings.

Frequently Asked Questions

SLB reported GAAP income from continuing operations attributable to Schlumberger of $1.12 billion for Q2 2015, with diluted earnings per share from continuing operations of $0.88. This represents a decrease compared to the $1.80 billion in income and $1.37 diluted EPS reported in the second quarter of 2014.

SLB highlights several non-GAAP measures, including Net Debt (gross debt less cash and investments), adjusted income and EPS (excluding charges and credits), and Free Cash Flow (cash flow from operations less capital expenditures and certain investments). Management believes these measures offer additional insights into operational performance.

The filing states that non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, GAAP measures. Management uses them to evaluate operations more effectively and identify trends, but investors should always refer to the company's full financial statements prepared in accordance with GAAP for a comprehensive view.

The detailed Q2 2015 results and supplemental information are provided as Exhibit 99.1 to this Form 8-K. This document includes both GAAP and non-GAAP financial information and was posted on the Schlumberger internet website on July 16, 2015.