Saturday, July 30, 2022

Schlumberger Announces Second-Quarter 2022 Results and Raises Full-Year Outlook

 

  • Revenue of $6.8 billion increased 14% sequentially and 20% year on year
  • GAAP EPS of $0.67 increased 86% sequentially and 123% year on year
  • EPS, excluding charges and credits, of $0.50 increased 47% sequentially and 67% year on year
  • Cash flow from operations was $408 million
  • Board approved quarterly cash dividend of $0.175 per share
  • Full-year revenue outlook revised upward to at least $27 billion

(BUSINESS WIRE)--Schlumberger Limited (NYSE: SLB) today announced results for the second-quarter 2022.

Second-Quarter Results(Stated in millions, except per share amounts)
 Three Months Ended Change
 Jun. 30, 2022 Mar. 31, 2022 Jun. 30, 2021 Sequential Year-on-year
Revenue

$6,773

 

$5,962

 

$5,634

 

14%

 

20%

Income before taxes - GAAP basis

$1,152

 

$638

 

$542

 

81%

 

113%

Net income - GAAP basis

$959

 

$510

 

$431

 

88%

 

123%

Diluted EPS - GAAP basis

$0.67

 

$0.36

 

$0.30

 

86%

 

123%

       

 

 

 

Adjusted EBITDA*

$1,530

 

$1,254

 

$1,198

 

22%

 

28%

Adjusted EBITDA margin*

22.6%

 

21.0%

 

21.3%

 

157 bps

 

132 bps

Pretax segment operating income*

$1,159

 

$894

 

$807

 

30%

 

44%

Pretax segment operating margin*

17.1%

 

15.0%

 

14.3%

 

212 bps

 

279 bps

Net income, excluding charges & credits*

$715

 

$488

 

$431

 

47%

 

66%

Diluted EPS, excluding charges & credits*

$0.50

 

$0.34

 

$0.30

 

47%

 

67%

       

 

 

 

Revenue by Geography      

 

 

 

International

$5,188

 

$4,632

 

$4,511

 

12%

 

15%

North America

1,537

 

1,282

 

1,083

 

20%

 

42%

Other

48

 

48

 

40

 

n/m

 

n/m

 

$6,773

 

$5,962

 

$5,634

 

14%

 

20%

*These are non-GAAP financial measures. See sections titled "Charges & Credits", "Divisions", and "Supplemental Information" for details.
n/m = not meaningful
 (Stated in millions)
 Three Months Ended Change
 Jun. 30, 2022 Mar. 31, 2022 Jun. 30, 2021 Sequential Year-on-year
Revenue by Division         
Digital & Integration

$955

 

$857

 

$817

 

11%

 

17%

Reservoir Performance

1,333

 

1,210

 

1,117

 

10%

 

19%

Well Construction

2,686

 

2,398

 

2,110

 

12%

 

27%

Production Systems

1,893

 

1,604

 

1,681

 

18%

 

13%

Other

(94)

 

(107)

 

(91)

 

n/m

 

n/m

 

$6,773

 

$5,962

 

$5,634

 

14%

 

20%

       

 

 

 

Pretax Operating Income by Division      

 

 

 

Digital & Integration

$379

 

$292

 

$274

 

30%

 

39%

Reservoir Performance

195

 

160

 

156

 

22%

 

25%

Well Construction

470

 

388

 

272

 

21%

 

73%

Production Systems

171

 

114

 

171

 

50%

 

0%

Other

(56)

 

(60)

 

(66)

 

n/m

 

n/m

 

$1,159

 

$894

 

$807

 

30%

 

44%

       

 

 

 

Pretax Operating Margin by Division      

 

 

 

Digital & Integration

39.7%

 

34.0%

 

33.5%

 

570 bps

 

621 bps

Reservoir Performance

14.6%

 

13.2%

 

13.9%

 

143 bps

 

69 bps

Well Construction

17.5%

 

16.2%

 

12.9%

 

134 bps

 

462 bps

Production Systems

9.0%

 

7.1%

 

10.2%

 

190 bps

 

-114 bps

Other

n/m

 

n/m

 

n/m

 

n/m

 

n/m

 

17.1%

 

15.0%

 

14.3%

 

212 bps

 

279 bps

          
n/m = not meaningful

Schlumberger CEO Olivier Le Peuch commented, “The second quarter marked a significant inflection point for Schlumberger with a strong acceleration of revenue and earnings growth. Sequentially, revenue grew 14%, by more than $800 million; EPS—excluding charges and credits—increased 47%; and pretax segment operating margin expanded 212 basis points (bps). Growth was broad-based, driven by an increase in activity internationally, in North America, and across all Divisions. The quarter was also characterized by a favorable mix of exploration and offshore activity and the increasing impact of improved pricing, resulting in the largest sequential quarterly growth since 2010.

“On a year-over-year basis, revenue grew 20%; EPS—excluding charges and credits—increased 67%; and pretax segment operating margin expanded 279 bps.

Raising Full-Year Outlook

“The strength of our second-quarter outperformance highlights a firmly established growth inflection and our ability to comprehensively participate in drilling and completion activity growth globally. The multiyear upcycle continues to gain momentum with upstream activity and service pricing steadily increasing both internationally and in North America, resulting in a strengthened outlook for Schlumberger.