UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file No.: 1-4601

 

Schlumberger N.V. (Schlumberger Limited)

(Exact name of registrant as specified in its charter)

Curaçao	52-0684746
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
42 rue Saint-Dominique
Paris, France	75007
5599 San Felipe
Houston, Texas, United States of America	77056
62 Buckingham Gate
London, United Kingdom	SW1E 6AJ
Parkstraat 83
The Hague, The Netherlands	2514 JG
(Addresses of principal executive offices)	(Zip Codes)

Registrant’s telephone number in the United States, including area code, is: (713) 513-2000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
common stock, par value $0.01 per share	SLB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at March 31, 2023
COMMON STOCK, $0.01 PAR VALUE PER SHARE	1,425,330,904

SCHLUMBERGER LIMITED

First Quarter 2023 Form 10-Q

Table of Contents

		Page
PART I	Financial Information
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	19
Item 4.	Controls and Procedures	19
PART II	Other Information
Item 1.	Legal Proceedings	20
Item 1A.	Risk Factors	20
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3.	Defaults Upon Senior Securities	20
Item 4.	Mine Safety Disclosures	20
Item 5.	Other Information	20
Item 6.	Exhibits	21

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

(Stated in millions, except per share amounts)
	Three Months Ended March 31,
	2023		2022
Revenue
Services	$	5,334	$	4,222
Product sales		2,402		1,740
Total Revenue		7,736		5,962
Interest & other income		92		50
Expenses
Cost of services		4,129		3,387
Cost of sales		2,156		1,626
Research & engineering		174		141
General & administrative		91		97
Interest		117		123
Income before taxes		1,161		638
Tax expense		217		118
Net income		944		520
Net income attributable to noncontrolling interests		10		10
Net income attributable to SLB	$	934	$	510
Basic income per share of SLB	$	0.65	$	0.36
Diluted income per share of SLB	$	0.65	$	0.36
Average shares outstanding:
Basic		1,426		1,412
Assuming dilution		1,446		1,434

See Notes to Consolidated Financial Statements

3

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)

(Stated in millions)
	Three Months Ended March 31,
	2023			2022
Net income	$	944		$	520
Currency translation adjustments
Unrealized net change arising during the period		(34	)		(106	)
Cash flow hedges
Net gain (loss) on cash flow hedges		(33	)		9
Reclassification to net income of net realized (gain) loss		(5	)		17
Pension and other postretirement benefit plans
Amortization to net income of net actuarial loss		(2	)		16
Amortization to net income of net prior service credit		(6	)		(5	)
Income taxes on pension and other postretirement benefit plans		2			-
Comprehensive income		866			451
Comprehensive income attributable to noncontrolling interests		10			10
Comprehensive income attributable to SLB	$	856		$	441

See Notes to Consolidated Financial Statements

4

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Stated in millions)
	Mar. 31,
	2023			Dec. 31,
	(Unaudited)			2022
ASSETS
Current Assets
Cash	$	1,501		$	1,655
Short-term investments		1,003			1,239
Receivables less allowance for doubtful accounts (2023 - $339; 2022 - $340)		7,578			7,032
Inventories		4,286			3,999
Other current assets		1,032			1,078
		15,400			15,003
Investments in Affiliated Companies		1,554			1,581
Fixed Assets less accumulated depreciation		6,691			6,607
Goodwill		13,113			12,982
Intangible Assets		3,021			2,992
Other Assets		4,076			3,970
	$	43,855		$	43,135
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	8,700		$	9,121
Estimated liability for taxes on income		1,038			1,002
Short-term borrowings and current portion of long-term debt		2,140			1,632
Dividends payable		374			263
		12,252			12,018
Long-term Debt		10,698			10,594
Postretirement Benefits		168			165
Deferred Taxes		194			61
Other Liabilities		2,163			2,308
		25,475			25,146
Equity
Common stock		11,264			11,837
Treasury stock		(559	)		(1,016	)
Retained earnings		11,296			10,719
Accumulated other comprehensive loss		(3,933	)		(3,855	)
SLB stockholders’ equity		18,068			17,685
Noncontrolling interests		312			304
		18,380			17,989
	$	43,855		$	43,135

See Notes to Consolidated Financial Statements

5

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(Stated in millions)
	Three Months Ended March 31,
	2023			2022
Cash flows from operating activities:
Net income	$	944		$	520
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (1)		563			533
Deferred taxes		112			(14	)
Stock-based compensation expense		81			89
Earnings of equity method investments, less dividends received		(32	)		6
Change in assets and liabilities: (2)
Increase in receivables		(509	)		(404	)
Increase in inventories		(288	)		(464	)
Decrease (increase) in other current assets		54			(177	)
Increase in other assets		(10	)		(25	)
(Decrease) increase in accounts payable and accrued liabilities		(473	)		89
(Decrease) increase in estimated liability for taxes on income		(84	)		8
Increase (decrease) in other liabilities		2			(5	)
Other		(30	)		(25	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		330			131
Cash flows from investing activities:
Capital expenditures		(410	)		(304	)
APS investments		(133	)		(168	)
Exploration data costs capitalized		(52	)		(40	)
Business acquisitions and investments, net of cash acquired		(244	)		-
Proceeds from sale of Liberty shares		137			84
Sale of short-term investments, net		236			336
Other		(81	)		(23	)
NET CASH USED IN INVESTING ACTIVITIES		(547	)		(115	)
Cash flows from financing activities:
Dividends paid		(249	)		(175	)
Proceeds from employee stock purchase plan		86			64
Proceeds from exercise of stock options		35			7
Stock repurchase program		(230	)		-
Proceeds from issuance of long-term debt		559			-
Net (decrease) increase in short-term borrowings		(50	)		16
Taxes paid on net settled stock-based compensation awards		(88	)		(81	)
Other		(1	)		(1	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		62			(170	)
Net decrease in cash before translation effect		(155	)		(154	)
Translation effect on cash		1			(3	)
Cash, beginning of period		1,655			1,757
Cash, end of period	$	1,501		$	1,600

(1)Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments.

(2)Net of the effect of business acquisitions.

See Notes to Consolidated Financial Statements

6

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

	(Stated in millions, except per share amounts)
										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2023 – March 31, 2023	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2023	$	11,837		$	(1,016	)	$	10,719		$	(3,855	)	$	304		$	17,989
Net income								934						10			944
Currency translation adjustments											(34	)					(34	)
Changes in fair value of cash flow hedges											(38	)					(38	)
Pension and other postretirement benefit plans											(6	)					(6	)
Shares sold to optionees, less shares exchanged		(28	)		63												35
Vesting of restricted stock, net of taxes withheld		(503	)		415												(88	)
Employee stock purchase plan		(123	)		209												86
Stock repurchase program					(230	)											(230	)
Stock-based compensation expense		81															81
Dividends declared ($0.25 per share)								(357	)								(357	)
Dividends paid to noncontrolling interests														(2	)		(2	)
Balance, March 31, 2023	$	11,264		$	(559	)	$	11,296		$	(3,933	)	$	312		$	18,380

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2022 – March 31, 2022	Issued			In Treasury			Earnings			Loss			Interests		Total
Balance, January 1, 2022	$	12,608		$	(2,233	)	$	8,199		$	(3,570	)	$	282	$	15,286
Net income								510						10		520
Currency translation adjustments											(106	)				(106	)
Changes in fair value of cash flow hedges											26					26
Pension and other postretirement benefit plans											11					11
Shares sold to optionees, less shares exchanged		(5	)		12											7
Vesting of restricted stock, net of taxes withheld		(631	)		550											(81	)
Employee stock purchase plan		(104	)		168											64
Stock-based compensation expense		89														89
Dividends declared ($0.125 per share)								(177	)