[10-Q] Schlumberger Limited Quarterly Earnings Report
Baker Hughes Company (BKR) – Form 144 notice
Insider Rebecca Charlton has filed to sell 500 Class A shares on or about 24 Jul 2025 through Fidelity. At the current market price of $45.00 (implied by the filing), the sale is valued at ≈$22.5 k. Charlton acquired the shares via restricted-stock vesting on 1 Jun 2024 and listed the shares as compensation income. During the past three months she has already sold 6,000 shares for $232.4 k.
The proposed transaction equals ≈0.00006 % of BKR’s 985.9 m shares outstanding and therefore has no effect on control or float. Form 144 contains the standard attestation that the seller possesses no undisclosed material adverse information. No other corporate events, earnings data or material transactions are disclosed.
Baker Hughes Company (BKR) – Avviso Modulo 144
La insider Rebecca Charlton ha presentato una richiesta per vendere 500 azioni di Classe A circa il 24 luglio 2025 tramite Fidelity. Al prezzo di mercato attuale di 45,00 $ (implicito dalla richiesta), la vendita ha un valore di circa 22,5 mila $. Charlton ha acquisito le azioni tramite vesting di azioni vincolate il 1 giugno 2024 e le ha dichiarate come reddito da compenso. Negli ultimi tre mesi ha già venduto 6.000 azioni per un totale di 232,4 mila $.
La transazione proposta corrisponde a circa 0,00006% delle 985,9 milioni di azioni BKR in circolazione e quindi non ha alcun effetto sul controllo o sul flottante. Il Modulo 144 contiene la dichiarazione standard secondo cui il venditore non possiede informazioni materiali sfavorevoli non divulgate. Non sono riportati altri eventi societari, dati sugli utili o transazioni rilevanti.
Baker Hughes Company (BKR) – Aviso Formulario 144
La insider Rebecca Charlton ha presentado una solicitud para vender 500 acciones Clase A aproximadamente el 24 de julio de 2025 a través de Fidelity. Al precio de mercado actual de 45,00 $ (implícito en la presentación), la venta tiene un valor aproximado de 22,5 mil $. Charlton adquirió las acciones mediante la adquisición de acciones restringidas el 1 de junio de 2024 y las declaró como ingreso por compensación. En los últimos tres meses ya ha vendido 6.000 acciones por un total de 232,4 mil $.
La transacción propuesta representa aproximadamente el 0,00006% de las 985,9 millones de acciones en circulación de BKR y por lo tanto no afecta el control ni el flotante. El Formulario 144 incluye la declaración estándar de que el vendedor no posee información material adversa no divulgada. No se revelan otros eventos corporativos, datos de ganancias ni transacciones materiales.
Baker Hughes Company (BKR) – Form 144 공지
내부자 Rebecca Charlton이 2025년 7월 24일경 Fidelity를 통해 500주 클래스 A 주식을 매도하기 위해 신고를 제출했습니다. 제출서류에 따른 현재 시장 가격 $45.00 기준으로 매도 가치는 약 $22,500입니다. Charlton은 2024년 6월 1일 제한 주식 권리 행사를 통해 주식을 취득했으며, 이를 보상 소득으로 신고했습니다. 지난 3개월 동안 이미 6,000주를 매도하여 $232,400를 기록했습니다.
이번 거래는 BKR의 9억 8,590만 주 중 약 0.00006%에 해당하며, 지배권이나 유통 주식수에 영향이 없습니다. Form 144에는 판매자가 미공개 중대한 부정적 정보를 보유하지 않았다는 표준 확인서가 포함되어 있습니다. 기타 기업 이벤트, 수익 데이터 또는 중대한 거래는 공개되지 않았습니다.
Baker Hughes Company (BKR) – Avis de formulaire 144
La dirigeante Rebecca Charlton a déposé une notification pour vendre 500 actions de Classe A aux alentours du 24 juillet 2025 via Fidelity. Au prix actuel du marché de 45,00 $ (implicite dans le dépôt), la vente est estimée à environ 22,5 k$. Charlton a acquis les actions par vesting d’actions restreintes le 1er juin 2024 et les a déclarées comme revenu de rémunération. Au cours des trois derniers mois, elle a déjà vendu 6 000 actions pour un total de 232,4 k$.
La transaction proposée représente environ 0,00006 % des 985,9 millions d’actions en circulation de BKR et n’a donc aucun impact sur le contrôle ou le flottant. Le formulaire 144 contient la déclaration standard attestant que le vendeur ne détient aucune information défavorable majeure non divulguée. Aucun autre événement d’entreprise, donnée sur les résultats ou transaction significative n’est divulgué.
Baker Hughes Company (BKR) – Formular 144 Mitteilung
Insider Rebecca Charlton hat die Meldung eingereicht, am oder um den 24. Juli 2025 etwa 500 Class A Aktien über Fidelity zu verkaufen. Zum aktuellen Marktpreis von 45,00 $ (laut Einreichung) beläuft sich der Verkauf auf etwa 22,5 Tsd. $. Charlton erwarb die Aktien durch Restricted-Stock-Vesting am 1. Juni 2024 und deklarierte sie als Vergütungseinkommen. In den letzten drei Monaten hat sie bereits 6.000 Aktien für 232,4 Tsd. $ verkauft.
Die geplante Transaktion entspricht etwa 0,00006 % der 985,9 Mio. ausstehenden Aktien von BKR und hat daher keine Auswirkung auf die Kontrolle oder den Streubesitz. Das Formular 144 enthält die übliche Bestätigung, dass der Verkäufer keine nicht offengelegten wesentlichen nachteiligen Informationen besitzt. Weitere Unternehmensereignisse, Gewinnzahlen oder wesentliche Transaktionen werden nicht bekannt gegeben.
- None.
- None.
Insights
TL;DR – Minor insider sale; negligible impact on BKR’s float or outlook.
The filing involves 500 shares, valued at ~$22.5 k, versus a 986 m-share base. Even including the prior 6,000-share sale, insider disposition remains de minimis. There is no indication of strategic intent, liquidity stress, or negative signal beyond routine diversification. As such, I classify this as non-impactful for valuation or governance risk. Monitoring is only warranted if cumulative sales accelerate materially.
Baker Hughes Company (BKR) – Avviso Modulo 144
La insider Rebecca Charlton ha presentato una richiesta per vendere 500 azioni di Classe A circa il 24 luglio 2025 tramite Fidelity. Al prezzo di mercato attuale di 45,00 $ (implicito dalla richiesta), la vendita ha un valore di circa 22,5 mila $. Charlton ha acquisito le azioni tramite vesting di azioni vincolate il 1 giugno 2024 e le ha dichiarate come reddito da compenso. Negli ultimi tre mesi ha già venduto 6.000 azioni per un totale di 232,4 mila $.
La transazione proposta corrisponde a circa 0,00006% delle 985,9 milioni di azioni BKR in circolazione e quindi non ha alcun effetto sul controllo o sul flottante. Il Modulo 144 contiene la dichiarazione standard secondo cui il venditore non possiede informazioni materiali sfavorevoli non divulgate. Non sono riportati altri eventi societari, dati sugli utili o transazioni rilevanti.
Baker Hughes Company (BKR) – Aviso Formulario 144
La insider Rebecca Charlton ha presentado una solicitud para vender 500 acciones Clase A aproximadamente el 24 de julio de 2025 a través de Fidelity. Al precio de mercado actual de 45,00 $ (implícito en la presentación), la venta tiene un valor aproximado de 22,5 mil $. Charlton adquirió las acciones mediante la adquisición de acciones restringidas el 1 de junio de 2024 y las declaró como ingreso por compensación. En los últimos tres meses ya ha vendido 6.000 acciones por un total de 232,4 mil $.
La transacción propuesta representa aproximadamente el 0,00006% de las 985,9 millones de acciones en circulación de BKR y por lo tanto no afecta el control ni el flotante. El Formulario 144 incluye la declaración estándar de que el vendedor no posee información material adversa no divulgada. No se revelan otros eventos corporativos, datos de ganancias ni transacciones materiales.
Baker Hughes Company (BKR) – Form 144 공지
내부자 Rebecca Charlton이 2025년 7월 24일경 Fidelity를 통해 500주 클래스 A 주식을 매도하기 위해 신고를 제출했습니다. 제출서류에 따른 현재 시장 가격 $45.00 기준으로 매도 가치는 약 $22,500입니다. Charlton은 2024년 6월 1일 제한 주식 권리 행사를 통해 주식을 취득했으며, 이를 보상 소득으로 신고했습니다. 지난 3개월 동안 이미 6,000주를 매도하여 $232,400를 기록했습니다.
이번 거래는 BKR의 9억 8,590만 주 중 약 0.00006%에 해당하며, 지배권이나 유통 주식수에 영향이 없습니다. Form 144에는 판매자가 미공개 중대한 부정적 정보를 보유하지 않았다는 표준 확인서가 포함되어 있습니다. 기타 기업 이벤트, 수익 데이터 또는 중대한 거래는 공개되지 않았습니다.
Baker Hughes Company (BKR) – Avis de formulaire 144
La dirigeante Rebecca Charlton a déposé une notification pour vendre 500 actions de Classe A aux alentours du 24 juillet 2025 via Fidelity. Au prix actuel du marché de 45,00 $ (implicite dans le dépôt), la vente est estimée à environ 22,5 k$. Charlton a acquis les actions par vesting d’actions restreintes le 1er juin 2024 et les a déclarées comme revenu de rémunération. Au cours des trois derniers mois, elle a déjà vendu 6 000 actions pour un total de 232,4 k$.
La transaction proposée représente environ 0,00006 % des 985,9 millions d’actions en circulation de BKR et n’a donc aucun impact sur le contrôle ou le flottant. Le formulaire 144 contient la déclaration standard attestant que le vendeur ne détient aucune information défavorable majeure non divulguée. Aucun autre événement d’entreprise, donnée sur les résultats ou transaction significative n’est divulgué.
Baker Hughes Company (BKR) – Formular 144 Mitteilung
Insider Rebecca Charlton hat die Meldung eingereicht, am oder um den 24. Juli 2025 etwa 500 Class A Aktien über Fidelity zu verkaufen. Zum aktuellen Marktpreis von 45,00 $ (laut Einreichung) beläuft sich der Verkauf auf etwa 22,5 Tsd. $. Charlton erwarb die Aktien durch Restricted-Stock-Vesting am 1. Juni 2024 und deklarierte sie als Vergütungseinkommen. In den letzten drei Monaten hat sie bereits 6.000 Aktien für 232,4 Tsd. $ verkauft.
Die geplante Transaktion entspricht etwa 0,00006 % der 985,9 Mio. ausstehenden Aktien von BKR und hat daher keine Auswirkung auf die Kontrolle oder den Streubesitz. Das Formular 144 enthält die übliche Bestätigung, dass der Verkäufer keine nicht offengelegten wesentlichen nachteiligen Informationen besitzt. Weitere Unternehmensereignisse, Gewinnzahlen oder wesentliche Transaktionen werden nicht bekannt gegeben.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file No.:
(Schlumberger Limited)
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of |
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42 rue Saint-Dominique |
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Paris, France |
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62 Buckingham Gate |
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London, United Kingdom |
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Parkstraat 83 |
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The Hague, The Netherlands |
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2514 JG |
(Addresses of principal executive offices) |
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Registrant’s telephone number in the United States, including area code, is: (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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.
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).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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.
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Accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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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 June 30, 2025 |
COMMON STOCK, $0.01 PAR VALUE PER SHARE |
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SCHLUMBERGER LIMITED
Second Quarter 2025 Form 10-Q
Table of Contents
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Page |
PART I |
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Financial Information |
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Item 1. |
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Financial Statements |
3 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
19 |
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Item 3. |
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Quantitative and Qualitative Disclosures About Market Risk |
24 |
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Item 4. |
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Controls and Procedures |
24 |
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PART II |
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Other Information |
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Item 1. |
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Legal Proceedings |
26 |
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Item 1A. |
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Risk Factors |
26 |
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Item 2. |
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Unregistered Sales of Equity Securities and Use of Proceeds |
26 |
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Item 3. |
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Defaults Upon Senior Securities |
26 |
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Item 4. |
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Mine Safety Disclosures |
26 |
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Item 5. |
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Other Information |
26 |
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Item 6. |
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Exhibits |
28 |
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(Stated in millions, except per share amounts) |
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Second Quarter |
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Six Months |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenue |
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Services |
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Product sales |
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Total Revenue |
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Interest & other income |
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Expenses |
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Cost of services |
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Cost of sales |
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Research & engineering |
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General & administrative |
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Restructuring & other |
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Merger & integration |
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Interest |
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Income before taxes |
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Tax expense |
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Net income |
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Net income attributable to noncontrolling interests |
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Net income attributable to SLB |
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Basic income per share of SLB |
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Diluted income per share of SLB |
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Average shares outstanding: |
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Basic |
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Assuming dilution |
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See Notes to Consolidated Financial Statements
3
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited)
(Stated in millions) |
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Second Quarter |
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2025 |
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2024 |
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2025 |
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2024 |
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Net income |
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Currency translation adjustments |
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Unrealized net change arising during the period |
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Cash flow hedges |
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Net gain (loss) on cash flow hedges |
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Reclassification to net income of net realized loss (gain) |
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Pension and other postretirement benefit plans |
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Amortization to net income of net actuarial gain (loss) |
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Amortization to net income of net prior service credit |
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Income taxes on pension and other postretirement benefit plans |
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Other |
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Comprehensive income |
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Comprehensive income attributable to noncontrolling interests |
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Comprehensive income attributable to SLB |
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See Notes to Consolidated Financial Statements
4
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Stated in millions) |
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Jun. 30, |
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2025 |
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Dec. 31, |
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(Unaudited) |
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2024 |
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ASSETS |
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Current Assets |
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Cash |
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Short-term investments |
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Receivables less allowance for doubtful accounts (2025 - $ |
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Inventories |
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Other current assets |
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Investments in Affiliated Companies |
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Fixed Assets less accumulated depreciation |
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Goodwill |
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Intangible Assets |
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Other Assets |
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$ |
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$ |
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LIABILITIES AND EQUITY |
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Current Liabilities |
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Accounts payable and accrued liabilities |
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$ |
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Estimated liability for taxes on income |
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Short-term borrowings and current portion of long-term debt |
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Dividends payable |
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Long-term Debt |
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Postretirement Benefits |
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Deferred Taxes |
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Other Liabilities |
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Equity |
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Common stock |
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Treasury stock |
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Retained earnings |
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Accumulated other comprehensive loss |
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SLB stockholders’ equity |
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Noncontrolling interests |
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$ |
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$ |
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||
See Notes to Consolidated Financial Statements
5
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
Six Months Ended June 30, |
|
|||||
|
2025 |
|
|
2024 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
||
Net income |
$ |
|
|
$ |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
||
Gain on sale of APS project |
|
( |
) |
|
|
- |
|
Impairment of equity method investment |
|
|
|
|
- |
|
|
Depreciation and amortization (1) |
|
|
|
|
|
||
Deferred taxes |
|
( |
) |
|
|
( |
) |
Stock-based compensation expense |
|
|
|
|
|
||
Earnings of equity method investments, less dividends received |
|
( |
) |
|
|
|
|
Change in assets and liabilities: (2) |
|
|
|
|
|
||
Increase in receivables |
|
( |
) |
|
|
( |
) |
Increase in inventories |
|
( |
) |
|
|
( |
) |
Decrease in other current assets |
|
|
|
|
|
||
Increase in other assets |
|
( |
) |
|
|
( |
) |
Decrease in accounts payable and accrued liabilities |
|
( |
) |
|
|
( |
) |
Decrease in estimated liability for taxes on income |
|
( |
) |
|
|
( |
) |
Increase in other liabilities |
|
|
|
|
|
||
Other |
|
|
|
|
|
||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
||
Capital expenditures |
|
( |
) |
|
|
( |
) |
APS investments |
|
( |
) |
|
|
( |
) |
Exploration data costs capitalized |
|
( |
) |
|
|
( |
) |
Business acquisitions and investments, net of cash acquired |
|
( |
) |
|
|
( |
) |
Sales of short-term investments, net |
|
|
|
|
|
||
Purchase of Blue Chip Swap securities |
|
( |
) |
|
|
( |
) |
Proceeds from sale of Blue Chip securities |
|
|
|
|
|
||
Proceed from sale of APS investment |
|
|
|
|
- |
|
|
Other |
|
|
|
|
|
||
NET CASH USED IN INVESTING ACTIVITIES |
|
( |
) |
|
|
( |
) |
Cash flows from financing activities: |
|
|
|
|
|
||
Dividends paid |
|
( |
) |
|
|
( |
) |
Proceeds from employee stock purchase plan |
|
|
|
|
|
||
Proceeds from exercise of stock options |
|
|
|
|
|
||
Taxes paid on net settled stock-based compensation awards |
|
( |
) |
|
|
( |
) |
Stock repurchase program |
|
( |
) |
|
|
( |
) |
Proceeds from issuance of long-term debt |
|
|
|
|
|
||
Repayment of long-term debt |
|
- |
|
|
|
( |
) |
Net decrease in short-term borrowings |
|
( |
) |
|
|
( |
) |
Other |
|
( |
) |
|
|
( |
) |
NET CASH USED IN FINANCING ACTIVITIES |
|
( |
) |
|
|
( |
) |
Net (decrease) increase in cash before translation effect |
|
( |
) |
|
|
|
|
Translation effect on cash |
|
|
|
|
( |
) |
|
Cash, beginning of period |
|
|
|
|
|
||
Cash, end of period |
$ |
|
|
$ |
|
||
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, 2025 – June 30, 2025 |
|
Issued |
|
|
In Treasury |
|
|
Earnings |
|
|
Loss |
|
|
Interests |
|
|
Total |
|
||||||
Balance, January 1, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Currency translation adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Changes in fair value of cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Pension and other postretirement benefit plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Shares sold to optionees, less shares exchanged |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Vesting of restricted stock, net of taxes withheld |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Employee stock purchase plan |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stock repurchase program |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividends declared ($ |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Dividends paid to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, June 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
||||||
|
|
Common Stock |
|
|
Retained |
|
|
Comprehensive |
|
|
Noncontrolling |
|
|
|
|
|||||||||
January 1, 2024 – June 30, 2024 |
|
Issued |
|
|
In Treasury |
|
|
Earnings |
|
|
Loss |
|
|
Interests |
|
|
Total |
|
||||||
Balance, January 1, 2024 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Currency translation adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Changes in fair value of cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Pension and other postretirement benefit plans |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Shares sold to optionees, less shares exchanged |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Vesting of restricted stock, net of taxes withheld |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Employee stock purchase plan |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stock repurchase program |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividends declared ($ |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Dividends paid to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||
Balance, June 30, 2024 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
||||||
|
|
Common Stock |
|
|
Retained |
|
|
Comprehensive |
|
|
Noncontrolling |
|
|
|
|
|||||||||
April 1, 2025 – June 30, 2025 |
|
Issued |
|
|
In Treasury |
|
|
Earnings |
|
|
Loss |
|
|
Interests |
|
|
Total |
|
||||||
Balance, April 1, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Currency translation adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Changes in fair value of cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pension and other postretirement benefit plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Shares sold to optionees, less shares exchanged |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
||||
Vesting of restricted stock, net of taxes withheld |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Stock repurchase program |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
- |
|
||||
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividends declared ($ |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Dividends paid to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, June 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
7
|
|
(Stated in millions, except per share amounts) |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
||||||
|
|
Common Stock |
|
|
Retained |
|
|
Comprehensive |
|
|
Noncontrolling |
|
|
|
|
|||||||||
April 1, 2024 – June 30, 2024 |
|
Issued |
|
|
In Treasury |
|
|
Earnings |
|
|
Loss |
|
|
Interests |
|
|
Total |
|
||||||
Balance, April 1, 2024 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Currency translation adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Changes in fair value of cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Pension and other postretirement benefit plans |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Shares sold to optionees, less shares exchanged |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Vesting of restricted stock, net of taxes withheld |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
||||
Stock repurchase program |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividends declared ($ |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Dividends paid to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Balance, June 30, 2024 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
SHARES OF COMMON STOCK
(Unaudited)
|
|
|
|
(Stated in millions) |
|
||||||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
Shares |
|
|||
|
Issued |
|
|
In Treasury |
|
|
Outstanding |
|
|||
Balance, January 1, 2025 |
|
|
|
|
( |
) |
|
|
|
||
Vesting of restricted stock |
|
- |
|
|
|
|
|
|
|
||
Shares issued under employee stock purchase plan |
|
- |
|
|
|
|
|
|
|
||
Stock repurchase program |
|
- |
|
|
|
( |
) |
|
|
( |
) |
Balance, June 30, 2025 |
|
|
|
|
( |
) |
|
|
|
||
See Notes to Consolidated Financial Statements
8
SCHLUMBERGER LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The accompanying unaudited consolidated financial statements of Schlumberger Limited and its subsidiaries (“SLB”) have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of SLB management, all adjustments considered necessary for a fair statement have been included in the accompanying unaudited financial statements. All intercompany transactions and balances have been eliminated in consolidation. Operating results for the three-month period ended June 30, 2025 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025. The December 31, 2024 balance sheet information has been derived from the SLB 2024 audited financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the SLB Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on January 22, 2025.
ChampionX Transaction
On July 16, 2025, SLB completed the acquisition of ChampionX Corporation ("ChampionX") in an all-stock transaction. ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. Under the terms of the agreement, ChampionX shareholders received
2. Charges and Credits
2025
Second quarter
During the second quarter of 2025, SLB recorded a $
During the second quarter of 2025, SLB recorded a charge of $
During the second quarter of 2025, in connection with the ChampionX transaction and the October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $
During the second quarter of 2025, SLB completed the sale of its interest in the Palliser APS project in Canada in exchange for net cash proceeds of $
First quarter
During the first quarter of 2025, SLB recorded a $
During the first quarter of 2025, in connection with the ChampionX transaction and the October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $
9
|
(Stated in millions) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pretax Charge |
|
|
Tax Benefit |
|
|
Noncontrolling |
|
|
|
|
||||
|
(Credit) |
|
|
(Expense) |
|
|
Interests |
|
|
Net |
|
||||
First quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Workforce reductions |
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
|||
Merger and integration |
|
|
|
|
|
|
|
|
|
|
|
||||
Second quarter: |
|
|
|
|
|
|
|
|
|
|
- |
|
|||
Impairment of equity method investment |
|
|
|
|
|
|
|
|
|
|
|
||||
Workforce reductions |
|
|
|
|
|
|
|
|
|
|
|
||||
Merger and integration |
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on sale of Palliser APS project |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
2024
Second quarter
During the second quarter of 2024, SLB recorded a charge of $
In connection with SLB's October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $
First quarter
In connection with SLB's acquisition of the Aker Solutions subsea business, SLB recorded $
|
(Stated in millions) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
Noncontrolling |
|
|
|
|
||||
|
Pretax Charge |
|
|
Tax Benefit |
|
|
Interests |
|
|
Net |
|
||||
First quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Merger and integration |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Second quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Workforce reductions |
|
|
|
|
|
|
|
|
|
|
|
||||
Merger and integration |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
10
3. Earnings per Share
The following is a reconciliation from basic earnings per share of SLB to diluted earnings per share of SLB:
|
(Stated in millions, except per share amounts) |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
2025 |
|
|
2024 |
|
||||||||||||||||||
|
Net Income |
|
|
Average |
|
|
Earnings per |
|
|
Net Income |
|
|
Average |
|
|
Earnings per |
|
||||||
Second Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
|
|
|
$ |
|
||||||
Assumed exercise of stock options |
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
||||
Unvested restricted stock |
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
||||
Diluted |
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
|
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
2025 |
|
|
2024 |
|
||||||||||||||||||
|
Net Income |
|
|
Average |
|
|
Earnings per |
|
|
Net Income |
|
|
Average |
|
|
Earnings per |
|
||||||
Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Assumed exercise of stock options |
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
||||
Unvested restricted stock |
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
||||
Diluted |
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
The number of outstanding options to purchase shares of SLB common stock that were not included in the computation of diluted income per share, because to do so would have had an antidilutive effect, was as follows:
(Stated in millions) |
|
||||||||||||||
|
|
|
|
|
|||||||||||
|
Second Quarter |
|
|
Six Months |
|
||||||||||
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Employee stock options |
|
|
|
|
|
|
|
|
|
|
|
||||
4. Inventories
A summary of inventories, which are stated at the lower of average cost or net realizable value, is as follows:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
Jun. 30, |
|
|
Dec. 31, |
|
||
|
2025 |
|
|
2024 |
|
||
Raw materials & field materials |
$ |
|
|
$ |
|
||
Work in progress |
|
|
|
|
|
||
Finished goods |
|
|
|
|
|
||
|
$ |
|
|
$ |
|
||
5. Fixed Assets
Fixed assets consist of the following:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
Jun. 30, |
|
|
Dec. 31, |
|
||
|
2025 |
|
|
2024 |
|
||
Property, plant & equipment |
$ |
|
|
$ |
|
||
Less: Accumulated depreciation |
|
|
|
|
|
||
|
$ |
|
|
$ |
|
||
11
Depreciation expense relating to fixed assets was as follows:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
2025 |
|
|
2024 |
|
||
Second Quarter |
$ |
|
|
$ |
|
||
Six Months |
$ |
|
|
$ |
|
||
6. Intangible Assets
Intangible assets consist of the following:
|
(Stated in millions) |
|
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Jun. 30, 2025 |
|
|
Dec. 31, 2024 |
|
||||||||||||||||||
|
Gross |
|
|
Accumulated |
|
|
Net Book |
|
|
Gross |
|
|
Accumulated |
|
|
Net Book |
|
||||||
|
Book Value |
|
|
Amortization |
|
|
Value |
|
|
Book Value |
|
|
Amortization |
|
|
Value |
|
||||||
Customer relationships |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Technology/technical know-how |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tradenames |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Amortization expense charged to income was as follows:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
2025 |
|
|
2024 |
|
||
Second Quarter |
$ |
|
|
$ |
|
||
Six Months |
$ |
|
|
$ |
|
||
Based on the carrying value of intangible assets at June 30, 2025, amortization expense for the subsequent five years is estimated to be: remaining two quarters of 2025—$
7. Long-term Debt
Long-term Debt consists of the following:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
Jun. 30, |
|
|
Dec. 31, |
|
||
|
2025 |
|
|
2024 |
|
||
$ |
|
|
$ |
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
$ |
|
|
$ |
|
||
12
The estimated fair value of SLB’s Long-term Debt, based on quoted market prices at June 30, 2025 and December 31, 2024, was $
At June 30, 2025, SLB had committed credit facility agreements with commercial banks aggregating $
Commercial paper borrowings are classified as long-term debt to the extent they are backed up by available and unused committed credit facilities maturing in more than one year and to the extent it is SLB’s intent to maintain these obligations for longer than one year. Borrowings under the commercial paper programs at June 30, 2025, were $
Schlumberger Limited fully and unconditionally guarantees the securities issued by certain of its subsidiaries, including securities issued by Schlumberger Investment S.A. and Schlumberger Finance Canada Ltd., both indirect wholly-owned subsidiaries of Schlumberger Limited.
8. Derivative Instruments and Hedging Activities
SLB’s functional currency is primarily the US dollar. However, outside the United States, a significant portion of SLB’s expenses is incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which SLB conducts business, the US dollar-reported expenses will increase (decrease).
Changes in foreign currency exchange rates expose SLB to risks on future cash flows relating to its fixed rate debt denominated in currencies other than the functional currency. SLB uses cross-currency interest rate swaps to provide a hedge against these risks. These contracts are accounted for as cash flow hedges, with the fair value of the derivative recorded on the Consolidated Balance Sheet and in Accumulated other comprehensive loss. Amounts recorded in Accumulated other comprehensive loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings.
Details regarding SLB’s outstanding cross-currency interest rate swaps as of June 30, 2025, were as follows:
A summary of the amounts included in the Consolidated Balance Sheet relating to cross currency interest rate swaps was as follows:
|
(Stated in millions) |
|
|||||
|
|
|
|
|
|
||
|
Jun. 30, 2025 |
|
|
Dec. 31, 2024 |
|
||
$ |
|
|
$ |
|
|||
$ |
|
|
$ |
|
|||
$ |
|
|
$ |
|
|||
The fair values were determined using a model with inputs that are observable in the market or can be derived or corroborated by observable data.
SLB is exposed to risks on future cash flows to the extent that the local currency is not the functional currency and expenses denominated in local currency are not equal to revenues denominated in local currency. SLB uses foreign currency forward contracts to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges.
SLB is also exposed to changes in the fair value of assets and liabilities denominated in currencies other than the functional currency. While SLB uses foreign currency forward contracts to economically hedge this exposure as it relates to certain currencies, these contracts are not designated as hedges for accounting purposes. Instead, the fair value of the derivative is recorded on the Consolidated
13
Balance Sheet and changes in the fair value are recognized in the Consolidated Statement of Income, as are changes in the fair value of the hedged item.
Foreign currency forward contracts were outstanding for the US dollar equivalent of $
Other than the previously mentioned cross-currency interest rate swaps, the fair value of the other outstanding derivatives was
The effect of derivative instruments designated as cash flow hedges, and those not designated as hedges, on the Consolidated Statement of Income was as follows:
|
|
|
|
|
|
|
(Stated in millions) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gain (Loss) Recognized in Income |
|
|
|
|||||||||||||
|
Second Quarter |
|
|
Six Months |
|
|
|
||||||||||
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
Consolidated Statement of Income Classification |
||||
Derivatives designated as cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
Cost of services/sales |
|||
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Interest expense |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Revenue |
|||
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Cost of services/sales |
||||
|
|
|
|
( |
) |
|
|
|
|
|
|
|
Revenue |
||||
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
|
||
Derivatives not designated as hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
Cost of services/sales |
||||
SLB has issued credit default swaps (“CDSs”) to certain third-party financial institutions that have an aggregate notional amount outstanding of approximately $
9. Contingencies
10. Segment Information
Financial information by segment is as follows:
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2025 |
|
|||||||||||||
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
||||
|
|
|
|
Income |
|
|
and |
|
|
Capital |
|
||||
|
Revenue |
|
|
Before Taxes |
|
|
Amortization |
|
|
Investments (5) |
|
||||
Digital & Integration |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Corporate & other (1) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Interest income (2) |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense (3) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Charges and credits (4) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
14
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2024 |
|
|||||||||||||
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
||||
|
|
|
|
Income |
|
|
and |
|
|
Capital |
|
||||
|
Revenue |
|
|
Before Taxes |
|
|
Amortization |
|
|
Investments (5) |
|
||||
Digital & Integration |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Corporate & other (1) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Interest income (2) |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense (3) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Charges and credits (4) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2025 |
|
|||||||||||||
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
||||
|
|
|
|
Income |
|
|
and |
|
|
Capital |
|
||||
|
Revenue |
|
|
Before Taxes |
|
|
Amortization |
|
|
Investments (5) |
|
||||
Digital & Integration |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Corporate & other (1) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Interest income (2) |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense (3) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Charges and credits (4) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
15
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2024 |
|
|||||||||||||
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
||||
|
|
|
|
Income |
|
|
and |
|
|
Capital |
|
||||
|
Revenue |
|
|
Before Taxes |
|
|
Amortization |
|
|
Investments (5) |
|
||||
Digital & Integration |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Corporate & other (1) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Interest income (2) |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense (3) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Charges and credits (4) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Total assets by segment are as follows:
|
(Stated in millions) |
|
||||||
|
|
|
|
|
|
|
||
|
|
Jun. 30, |
|
|
Dec. 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
Digital & Integration |
|
$ |
|
|
$ |
|
||
Reservoir Performance |
|
|
|
|
|
|
||
Well Construction |
|
|
|
|
|
|
||
Production Systems |
|
|
|
|
|
|
||
Goodwill and intangibles |
|
|
|
|
|
|
||
All other assets |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
Segment assets consist of receivables, inventories, fixed assets, exploration data costs capitalized, and APS investments.
Revenue by geographic area was as follows:
|
|
|
|
|
|
|
(Stated in millions) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter |
|
|
Six Months |
|
||||||||||
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
North America |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Latin America |
|
|
|
|
|
|
|
|
|
|
|
||||
Europe & Africa (1) |
|
|
|
|
|
|
|
|
|
|
|
||||
Middle East & Asia |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
16
North America and International revenue disaggregated by segment was as follows:
|
|
|
|
|
|
|
(Stated in millions) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2025 |
|
|||||||||||||
|
North |
|
|
|
|
|
|
|
|
|
|
||||
|
America |
|
|
International |
|
|
Other |
|
|
Total |
|
||||
Digital & Integration |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2024 |
|
|||||||||||||
|
North |
|
|
|
|
|
|
|
|
|
|
||||
|
America |
|
|
International |
|
|
Other |
|
|
Total |
|
||||
Digital & Integration |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2025 |
|
|||||||||||||
|
North |
|
|
|
|
|
|
|
|
|
|
||||
|
America |
|
|
International |
|
|
Other |
|
|
Total |
|
||||
Digital & Integration |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2024 |
|
|||||||||||||
|
North |
|
|
|
|
|
|
|
|
|
|
||||
|
America |
|
|
International |
|
|
Other |
|
|
Total |
|
||||
Digital & Integration |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Significant segment expenses, which represent the difference between segment revenue and pretax segment income, consist of the following:
17
(Stated in millions) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2025 |
|
|||||||||||||
|
Digital & |
|
|
Reservoir |
|
|
Well |
|
|
Production |
|
||||
|
Integration |
|
|
Performance |
|
|
Construction |
|
|
Systems |
|
||||
Compensation |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cost of products, materials, and supplies |
|
- |
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
||||
Allocations |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2024 |
|
|||||||||||||
|
Digital & |
|
|
Reservoir |
|
|
Well |
|
|
Production |
|
||||
|
Integration |
|
|
Performance |
|
|
Construction |
|
|
Systems |
|
||||
Compensation |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cost of products, materials, and supplies |
|
- |
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
||||
Allocations |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2025 |
|
|||||||||||||
|
Digital & |
|
|
Reservoir |
|
|
Well |
|
|
Production |
|
||||
|
Integration |
|
|
Performance |
|
|
Construction |
|
|
Systems |
|
||||
Compensation |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cost of products, materials, and supplies |
|
- |
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
||||
Allocations |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2024 |
|
|||||||||||||
|
Digital & |
|
|
Reservoir |
|
|
Well |
|
|
Production |
|
||||
|
Integration |
|
|
Performance |
|
|
Construction |
|
|
Systems |
|
||||
Compensation |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cost of products, materials, and supplies |
|
- |
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
||||
Allocations |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Other segment expenses include transportation, mobilization, lease, professional fees, and other costs.
Revenue in excess of billings related to contracts where revenue is recognized over time was $
Total backlog was $
Billings and cash collections in excess of revenue was $
18
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Second Quarter 2025 Compared to First Quarter 2025
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2025 |
|
|
First Quarter 2025 |
|
||||||||||
|
|
|
|
Income |
|
|
|
|
|
Income |
|
||||
|
Revenue |
|
|
Before Taxes |
|
|
Revenue |
|
|
Before Taxes |
|
||||
Digital & Integration |
$ |
995 |
|
|
$ |
327 |
|
|
$ |
1,006 |
|
|
$ |
306 |
|
Reservoir Performance |
|
1,691 |
|
|
|
314 |
|
|
|
1,700 |
|
|
|
282 |
|
Well Construction |
|
2,963 |
|
|
|
551 |
|
|
|
2,977 |
|
|
|
589 |
|
Production Systems |
|
3,036 |
|
|
|
499 |
|
|
|
2,938 |
|
|
|
475 |
|
Eliminations & other |
|
(139 |
) |
|
|
(107 |
) |
|
|
(131 |
) |
|
|
(96 |
) |
|
|
|
|
|
1,584 |
|
|
|
|
|
|
1,556 |
|
||
Corporate & other (1) |
|
|
|
|
(169 |
) |
|
|
|
|
|
(178 |
) |
||
Interest income (2) |
|
|
|
|
30 |
|
|
|
|
|
|
36 |
|
||
Interest expense (3) |
|
|
|
|
(139 |
) |
|
|
|
|
|
(144 |
) |
||
Charges and credits (4) |
|
|
|
|
(21 |
) |
|
|
|
|
|
(207 |
) |
||
|
$ |
8,546 |
|
|
$ |
1,285 |
|
|
$ |
8,490 |
|
|
$ |
1,063 |
|
Second-quarter 2025 revenue of $8.5 billion increased 1% compared to the first quarter of 2025. SLB’s broad exposure across geographies and business lines enabled it to effectively overcome the impact of certain regional activity slowdowns. As a result, international revenue increased 2% sequentially, driven by robust growth in some parts of the Middle East, Asia, Europe and North Africa, which more than offset declines in certain key markets. Revenue in North America decreased 4% sequentially as a result of lower Asset Performance Solutions (“APS”) revenue and reduced activity due to the Canadian seasonal spring break.
Despite pockets of activity adjustments in key markets, the industry has shown that it can operate through uncertainty without a significant drop in upstream spending. This has been driven by the combination of capital discipline and the need for energy security.
Assuming commodity prices stay range bound, SLB remain constructive for the second half of the year. This is supported by its position in key markets, the depth of its diversified portfolio, and its increased exposure to the growing production and recovery market through the acquisition of ChampionX, which closed on July 16, 2025 (see Note 1 to the Consolidated Financial Statements). SLB will also continue to manage costs in line with market conditions as it remains focused on delivering peer-leading margins.
Digital & Integration
Digital & Integration revenue of $995 million decreased 1% sequentially primarily due to lower APS revenue in Canada. Digital revenue remained steady, with double-digit sequential growth from the combined effects of platforms, applications and digital operations, offset by reduced sales of exploration data following a strong first quarter.
Digital & Integration pretax operating margin of 33% expanded 240 basis points (“bps”) sequentially, driven by greater digital adoption and efficiency gains.
Reservoir Performance
Reservoir Performance revenue of $1.7 billion declined 1% sequentially due to a slowdown in evaluation and stimulation activity across international markets, partially offset by strong intervention activity.
Reservoir Performance pretax operating margin of 19% increased 203 bps sequentially as a result of the higher intervention activity and the absence of startup costs that impacted the first quarter.
19
Well Construction
Well Construction revenue of $3.0 billion was essentially flat sequentially. Higher revenue in Iraq, the United Arab Emirates, offshore Mexico, North Africa and Nigeria were offset by declines in drilling activity in Namibia, North America land markets, Argentina and Saudi Arabia.
Well Construction pretax operating margin of 19% declined 119 bps sequentially primarily due to an unfavorable geography mix in the international markets.
Production Systems
Production Systems revenue of $3.0 billion increased 3% sequentially primarily due to higher sales of artificial lift systems and midstream production solutions.
Production Systems sequential pretax operating margin remained steady at 16% primarily due to continued growth and a favorable activity mix.
Six Months 2025 Compared to Six Months 2024
|
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Six Months 2025 |
|
|
Six Months 2024 |
|
||||||||||
|
|
|
|
|
Income |
|
|
|
|
|
Income |
|
||||
|
|
Revenue |
|
|
Before Taxes |
|
|
Revenue |
|
|
Before Taxes |
|
||||
Digital & Integration |
|
$ |
2,001 |
|
|
$ |
633 |
|
|
$ |
2,003 |
|
|
$ |
579 |
|
Reservoir Performance |
|
|
3,391 |
|
|
|
596 |
|
|
|
3,544 |
|
|
|
715 |
|
Well Construction |
|
|
5,940 |
|
|
|
1,140 |
|
|
|
6,779 |
|
|
|
1,432 |
|
Production Systems |
|
|
5,974 |
|
|
|
973 |
|
|
|
5,843 |
|
|
|
873 |
|
Eliminations & other |
|
|
(271 |
) |
|
|
(202 |
) |
|
|
(323 |
) |
|
|
(97 |
) |
|
|
|
|
|
|
3,140 |
|
|
|
|
|
|
3,502 |
|
||
Corporate & other (1) |
|
|
|
|
|
(347 |
) |
|
|
|
|
|
(382 |
) |
||
Interest income (2) |
|
|
|
|
|
66 |
|
|
|
|
|
|
63 |
|
||
Interest expense (3) |
|
|
|
|
|
(283 |
) |
|
|
|
|
|
(238 |
) |
||
Charges and credits (4) |
|
|
|
|
|
(228 |
) |
|
|
|
|
|
(167 |
) |
||
|
|
$ |
17,035 |
|
|
$ |
2,348 |
|
|
$ |
17,846 |
|
|
$ |
2,778 |
|
Six-month 2025 revenue of $17.0 billion decreased 5% year on year primarily due to activity reductions in Saudi Arabia, Mexico, and certain key offshore markets. As a result, international revenue declined by 6% year on year. North America revenue increased by 4% primarily due to growth in data center infrastructure solutions.
Digital & Integration
Digital & Integration revenue of $2.0 billion was flat year on year. Revenue growth from platform, applications and digital operations of 10% was offset by lower sales exploration data and lower APS revenue.
Digital & Integration pretax operating margin of 32% increased 272 bps year on year driven by greater digital adoption and efficiency gains.
Reservoir Performance
Reservoir Performance revenue of $3.4 billion decreased 4% year on year primarily due to a slowdown in evaluation and stimulation activity in the international markets.
20
Reservoir Performance pretax operating margin of 18% contracted 259 bps year on year due to the lower evaluation and stimulation activity.
Well Construction
Well Construction revenue of $5.9 billion declined 12% year on year driven by a broad reduction in drilling activity both internationally, mainly in Saudi Arabia, Mexico and offshore Africa, and in North America.
Well Construction pretax operating margin of 19% declined 193 bps year on year driven by the widespread activity reductions.
Production Systems
Production Systems revenue of $6.0 billion increased 2% year on year driven by strong demand for data center infrastructure solutions, artificial lift, completions, and surface production systems.
Production Systems pretax operating margin of 16% expanded 136 bps year on year driven primarily by a favorable activity mix and execution efficiency.
Interest & Other Income
Interest & other income consisted of the following:
(Stated in millions) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter |
|
|
First Quarter |
|
|
Six Months |
|
|||||||
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
||||
Gain on sale of Palliser APS project |
$ |
149 |
|
|
$ |
- |
|
|
$ |
149 |
|
|
$ |
- |
|
Earnings of equity method investments |
|
72 |
|
|
|
42 |
|
|
|
114 |
|
|
|
93 |
|
Interest income |
|
31 |
|
|
|
36 |
|
|
|
67 |
|
|
|
76 |
|
|
$ |
252 |
|
|
$ |
78 |
|
|
$ |
330 |
|
|
$ |
169 |
|
Other
Research & engineering and General & administrative expenses, as a percentage of Revenue were as follows:
|
Second |
|
|
First |
|
|
|
|
|||||||
|
Quarter |
|
|
Quarter |
|
|
Six Months |
|
|||||||
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
||||
Research & engineering |
|
2.1 |
% |
|
|
2.0 |
% |
|
|
2.1 |
% |
|
|
2.1 |
% |
General & administrative |
|
1.0 |
% |
|
|
1.1 |
% |
|
|
1.1 |
% |
|
|
1.2 |
% |
The effective tax rate was 18% for the second quarter of 2025 as compared to 19% for the same period of 2024. The effective tax rate for the first six months of 2025 was 20% as compared to 19% for the same period of 2024.
Charges and Credits
SLB recorded charges and credits during the first six months of 2025 and 2024. These charges and credits, which are summarized below, are more fully described in Note 2 to the Consolidated Financial Statements.
2025:
21
|
(Stated in millions) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pretax Charge |
|
|
Tax Benefit |
|
|
Noncontrolling |
|
|
|
|
||||
|
(Credit) |
|
|
(Expense) |
|
|
Interests |
|
|
Net |
|
||||
First quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Workforce reductions |
$ |
158 |
|
|
$ |
10 |
|
|
$ |
- |
|
|
$ |
148 |
|
Merger and integration |
|
49 |
|
|
|
1 |
|
|
|
4 |
|
|
|
44 |
|
Second quarter: |
|
|
|
|
|
|
|
|
|
|
- |
|
|||
Impairment of equity method investment |
|
69 |
|
|
|
12 |
|
|
|
- |
|
|
|
57 |
|
Workforce reductions |
|
66 |
|
|
|
3 |
|
|
|
- |
|
|
|
63 |
|
Merger and integration |
|
35 |
|
|
|
4 |
|
|
|
4 |
|
|
|
27 |
|
Gain on sale of Palliser APS project |
|
(149 |
) |
|
|
(4 |
) |
|
|
- |
|
|
|
(145 |
) |
|
$ |
228 |
|
|
$ |
26 |
|
|
$ |
8 |
|
|
$ |
194 |
|
2024:
|
(Stated in millions) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
Noncontrolling |
|
|
|
|
||||
|
Pretax Charge |
|
|
Tax Benefit |
|
|
Interests |
|
|
Net |
|
||||
First quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Merger and integration |
$ |
25 |
|
|
$ |
6 |
|
|
$ |
5 |
|
|
$ |
14 |
|
Second quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Workforce reductions |
|
111 |
|
|
|
17 |
|
|
|
- |
|
|
|
94 |
|
Merger and integration |
|
31 |
|
|
|
5 |
|
|
|
8 |
|
|
|
18 |
|
|
$ |
167 |
|
|
$ |
28 |
|
|
$ |
13 |
|
|
$ |
126 |
|
Liquidity and Capital Resources
Details of the components of liquidity as well as changes in liquidity are as follows:
|
(Stated in millions) |
|
|||||||||
|
|
|
|
|
|
|
|
|
|||
|
Jun. 30, |
|
|
Jun. 30, |
|
|
Dec. 31, |
|
|||
Components of Liquidity: |
2025 |
|
|
2024 |
|
|
2024 |
|
|||
Cash |
$ |
3,236 |
|
|
$ |
2,953 |
|
|
$ |
3,544 |
|
Short-term investments |
|
511 |
|
|
|
1,050 |
|
|
|
1,125 |
|
Short-term borrowings and current portion of long-term debt |
|
(2,807 |
) |
|
|
(1,033 |
) |
|
|
(1,051 |
) |
Long-term debt |
|
(10,891 |
) |
|
|
(12,156 |
) |
|
|
(11,023 |
) |
Net debt (1) |
$ |
(9,951 |
) |
|
$ |
(9,186 |
) |
|
$ |
(7,405 |
) |
22
|
Six Months Ended Jun. 30, |
|
|||||
Changes in Liquidity: |
2025 |
|
|
2024 |
|
||
Net income |
$ |
1,877 |
|
|
$ |
2,243 |
|
Impairment of equity method investment |
|
69 |
|
|
|
- |
|
Gain on sale of Palliser APS project |
|
(149 |
) |
|
|
- |
|
Depreciation and amortization (2) |
|
1,273 |
|
|
|
1,231 |
|
Earnings of equity method investments, less dividends received |
|
(47 |
) |
|
|
12 |
|
Deferred taxes |
|
(60 |
) |
|
|
(29 |
) |
Stock-based compensation expense |
|
168 |
|
|
|
173 |
|
Increase in working capital |
|
(1,401 |
) |
|
|
(1,906 |
) |
Other |
|
72 |
|
|
|
39 |
|
Cash flow from operations |
|
1,802 |
|
|
|
1,763 |
|
Capital expenditures |
|
(769 |
) |
|
|
(862 |
) |
APS investments |
|
(225 |
) |
|
|
(256 |
) |
Exploration data costs capitalized |
|
(83 |
) |
|
|
(91 |
) |
Free cash flow (3) |
|
725 |
|
|
|
554 |
|
Dividends paid |
|
(773 |
) |
|
|
(751 |
) |
Stock repurchase program |
|
(2,300 |
) |
|
|
(735 |
) |
Proceeds from employee stock plans |
|
105 |
|
|
|
100 |
|
Proceeds from stock options |
|
8 |
|
|
|
20 |
|
Taxes paid on net settled stock-based compensation awards |
|
(55 |
) |
|
|
(78 |
) |
Business acquisitions and investments, net of cash acquired |
|
(47 |
) |
|
|
(505 |
) |
Proceeds from sale of Palliser APS project |
|
316 |
|
|
|
- |
|
Purchase of Blue Chip Swap securities |
|
(123 |
) |
|
|
(76 |
) |
Proceeds from sale of Blue Chip securities |
|
102 |
|
|
|
51 |
|
Other |
|
(9 |
) |
|
|
39 |
|
Increase in net debt before impact of changes in foreign exchange rates |
|
(2,051 |
) |
|
|
(1,381 |
) |
Impact of changes in foreign exchange rates on net debt |
|
(495 |
) |
|
|
171 |
|
Increase in net debt |
|
(2,546 |
) |
|
|
(1,210 |
) |
Net debt, beginning of period (1) |
|
(7,405 |
) |
|
|
(7,976 |
) |
Net debt, end of period (1) |
$ |
(9,951 |
) |
|
$ |
(9,186 |
) |
Key liquidity events during the first six months of 2025 and 2024 included:
23
As of June 30, 2025, SLB had $3.7 billion of cash and short-term investments on hand and committed debt facility agreements with commercial banks aggregating $5.0 billion, all of which was available. SLB believes these amounts are sufficient to meet future business requirements for at least the next 12 months and beyond.
SLB has a global footprint in more than 100 countries. As of June 30, 2025, only two of those countries individually accounted for greater than 5% of SLB’s net receivable balance. Only one of these countries, the United States, represented greater than 10% of such receivables. As of June 30, 2025, Mexico represented 9% of SLB's net accounts receivable balance see Note 8 to the Consolidated Financial Statements. While SLB has recently experienced delays in payment from its primary customer in Mexico, these receivables are not in dispute and SLB has not historically had any material write-offs due to uncollectible accounts receivable relating to this customer.
FORWARD-LOOKING STATEMENTS
This second-quarter 2025 Form 10-Q, as well as other statements we make, contain “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “outlook,” “expectations,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,” “should,” “could,” “would,” “will,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about SLB’s financial and performance targets and other forecasts or expectations regarding, or dependent on, its business outlook; growth for SLB as a whole and for each of its Divisions (and for specified business lines, geographic areas, or technologies within each Division); the benefits of the ChampionX acquisition, including the ability of SLB to integrate the ChampionX business successfully and to achieve anticipated synergies and value creation from the acquisition; oil and natural gas demand and production growth; oil and natural gas prices; forecasts or expectations regarding energy transition and global climate change; improvements in operating procedures and technology; capital expenditures by SLB and the oil and gas industry; the business strategies of SLB, including digital and “fit for basin,” as well as the strategies of SLB’s customers; SLB’s capital allocation plans, including dividend plans and share repurchase programs; SLB’s APS projects, joint ventures, and other alliances; the impact of ongoing or escalating conflicts on global energy supply; access to raw materials; future global economic and geopolitical conditions; future liquidity, including free cash flow; and future results of operations, such as margin levels. These statements are subject to risks and uncertainties, including, but not limited to, changing global economic and geopolitical conditions; changes in exploration and production spending by SLB’s customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of SLB’s customers and suppliers; SLB’s inability to achieve its financial and performance targets and other forecasts and expectations; SLB’s inability to achieve net-zero carbon emissions goals or interim emissions reduction goals; general economic, geopolitical and business conditions in key regions of the world; foreign currency risk; inflation; changes in monetary policy by governments; tariffs; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays or cancellations; challenges in SLB’s supply chain; production declines; the extent of future charges; SLB’s inability to recognize efficiencies and other intended benefits from its business strategies and initiatives, such as digital or new energy, as well as its cost reduction strategies; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, and climate-related initiatives; the inability of technology to meet new challenges in exploration; the competitiveness of alternative energy sources or product substitutes; and other risks and uncertainties detailed in this Form 10-Q and our most recent Form 10-K and Forms 8-K filed with or furnished to the SEC.
If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this Form 10-Q regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Statements in this Form 10-Q are made as of July 24, 2025, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
For quantitative and qualitative disclosures about market risk affecting SLB, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” of the SLB Annual Report on Form 10-K for the fiscal year ended December 31, 2024. SLB’s exposure to market risk has not changed materially since December 31, 2024.
Item 4. Controls and Procedures.
SLB has carried out an evaluation under the supervision and with the participation of SLB’s management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), of the effectiveness of SLB’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the
24
period covered by this report. Based on this evaluation, the CEO and the CFO have concluded that, as of the end of the period covered by this report, SLB’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that SLB files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. SLB’s disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to its management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding required disclosure. There was no change in SLB’s internal control over financial reporting during the quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, SLB’s internal control over financial reporting.
25
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
The information with respect to this Item 1 is set forth under Note 9—Contingencies, in the accompanying Consolidated Financial Statements.
Item 1A. Risk Factors.
On July 16, 2025, SLB completed the acquisition of ChampionX and therefore no longer faces risks associated with the ability to complete the ChampionX transaction. Except as described in the foregoing sentence, as of the date of this filing, there have been no material changes from the risk factors disclosed in Part 1, Item 1A, of SLB’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Unregistered Sales of Equity Securities
None.
Issuer Repurchases of Equity Securities
On January 21, 2016, the SLB Board of Directors approved a $10 billion share repurchase program for SLB common stock. As of June 30, 2025, SLB had repurchased approximately $5.8 billion of SLB common stock under this program.
SLB's common stock repurchase activity for the three months ended June 30, 2025 was as follows:
|
(Stated in thousands, except per share amounts) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total number |
|
|
Average price |
|
|
Total number |
|
|
Maximum |
|
||||
April 2025 |
|
9,127.3 |
|
|
$ |
50.40 |
|
|
|
9,127.3 |
|
|
$ |
4,241,326 |
|
May 2025 |
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
4,241,326 |
|
June 2025 |
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
4,241,326 |
|
|
|
9,127.3 |
|
|
$ |
50.40 |
|
|
|
9,127.3 |
|
|
|
|
|
SLB entered into ASR agreements to repurchase $2.3 billion of its common stock commencing on January 13, 2025, and ending no later than May 31, 2025. The ASR was completed on April 7, 2025, and SLB received 56.8 million shares of its common stock, of which 47.6 million were received in January 2025 and the remaining shares were received in April 2025. These shares were repurchased by SLB at an average price of $40.51, representing the volume-weighted average price of SLB's common stock during this period less a discount.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Our mining operations are subject to regulation by the federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this report.
Item 5. Other Information.
In 2013, SLB completed the wind down of its service operations in Iran. Prior to this, certain non-US subsidiaries provided oilfield services to the National Iranian Oil Company and certain of its affiliates (“NIOC”).
SLB’s residual transactions or dealings with the government of Iran during the second quarter of 2025 consisted of payments of taxes and other typical governmental charges. Certain non-US subsidiaries of SLB maintain depository accounts at the Dubai branch of Bank Saderat Iran (“Saderat”), and at Bank Tejarat (“Tejarat”) in Tehran and in Kish for the deposit by NIOC of amounts owed to non-US subsidiaries of SLB for prior services rendered in Iran and for the maintenance of such amounts previously received. One non-US
26
subsidiary also maintained an account at Tejarat for payment of local expenses such as taxes. SLB anticipates that it will discontinue dealings with Saderat and Tejarat following the receipt of all amounts owed to SLB for prior services rendered in Iran.
27
Item 6. Exhibits.
Exhibit 3.1—Articles of Incorporation of Schlumberger Limited (Schlumberger N.V.) (incorporated by reference to Exhibit 3.1 to SLB’s Current Report on Form 8-K filed on April 6, 2016) |
|
Exhibit 3.2—Amended and Restated By-Laws of Schlumberger Limited (Schlumberger N.V.) (incorporated by reference to Exhibit 3 to SLB’s Current Report on Form 8-K filed on April 21, 2023) |
|
* Exhibit 10.1—Employment, Non-Competition and Non-Solicitation Agreement effective as of May 1, 2025, by and between SLB and Khaled Al Mogharbel (+) |
|
Exhibit 10.2—SLB Discounted Stock Purchase Plan, as amended and restated effective January 16, 2025 (incorporated by reference to Appendix B to SLB’s Definitive Proxy Statement on Schedule 14A filed on February 20, 2025) (+) |
|
* Exhibit 22—Issuers of Registered Guaranteed Debt Securities |
|
* Exhibit 31.1—Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
* Exhibit 31.2—Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
** Exhibit 32.1—Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
** Exhibit 32.2—Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
* Exhibit 95—Mine Safety Disclosures |
|
* Exhibit 101.INS—Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document |
|
* Exhibit 101.SCH—Inline XBRL Taxonomy Extension Schema Document |
|
* Exhibit 104—Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* Filed with this Form 10-Q.
** Furnished with this Form 10-Q.
(+) Management contracts or compensatory plans or arrangements.
28
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
|
SCHLUMBERGER LIMITED |
Date: |
July 24, 2025 |
|
/s/ Howard Guild |
|
|
|
Howard Guild |
|
|
|
Chief Accounting Officer and Duly Authorized Signatory |
29
