Published: 07/23/2021
Published: 07/23/2021
Q2 2021 Earnings Release, with Financial Tables (310 KB PDF)
Q2 2021 Earnings Conference Call Prepared Remarks (189 KB PDF)
Q2 2021 Earnings Conference Call Transcript (173 KB PDF)
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PARIS, July 23, 2021—Schlumberger Limited (NYSE: SLB) today reported results for the second-quarter 2021.
(Stated in millions, except per share amounts) | ||||||
Three Months Ended | Change | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Sequential | Year-on-year | ||
Revenue* | $5,634 | $5,223 | $5,356 | 8% | 5% | |
Income (loss) before taxes - GAAP basis | $542 | $386 | $(3,627) | 40% | n/m | |
Net income (loss) - GAAP basis | $431 | $299 | $(3,434) | 44% | n/m | |
Diluted EPS (loss per share) - GAAP basis | $0.30 | $0.21 | $(2.47) | 43% | n/m | |
Adjusted EBITDA** | $1,198 | $1,049 | $838 | 14% | 43% | |
21.3% | 20.1% | 15.6% | 118 bps | 561 bps | ||
Pretax segment operating income** | $807 | $664 | $396 | 22% | 104% | |
Pretax segment operating margin** | 14.3% | 12.7% | 7.4% | 162 bps | 694 bps | |
Net income, excluding charges & credits** | $431 | $299 | $69 | 44% | 525% | |
Diluted EPS, excluding charges & credits** | $0.30 | $0.21 | $0.05 | 43% | 500% | |
Revenue by Geography | ||||||
International | $4,511 | $4,211 | $4,224 | 7% | 7% | |
North America* | 1,083 | 972 | 1,097 | 11% | -1% | |
40 | 40 | 35 | n/m | n/m | ||
$5,634 | $5,223 | $5,356 | 8% | 5% | ||
*Schlumberger divested certain businesses in North America during the fourth quarter of 2020. These businesses generated revenue of $159 million during the second quarter of 2020. Excluding the impact of these divestitures, global second-quarter 2021 revenue increased 8% year-on-year. North America second-quarter 2021 revenue, excluding the impact of these divestitures, increased 15% year-on-year. **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, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Sequential | Year-on-year | ||
Revenue by Division | ||||||
Digital & Integration | $817 | $773 | $619 | 6% | 32% | |
Reservoir Performance* | 1,117 | 1,002 | 1,170 | 12% | -4% | |
Well Construction | 2,110 | 1,935 | 2,089 | 9% | 1% | |
Production Systems** | 1,681 | 1,590 | 1,557 | 6% | 8% | |
(91) | (77) | (79) | n/m | n/m | ||
$5,634 | $5,223 | $5,356 | 8% | 5% | ||
Pretax Operating Income by Division |
||||||
Digital & Integration | $274 | $247 | $108 | 11% | 154% | |
Reservoir Performance | 156 | 102 | 22 | 52% | 609% | |
Well Construction | 272 | 209 | 180 | 30% | 51% | |
Production Systems | 171 | 138 | 145 | 24% | 18% | |
(66) | (32) | (59) | n/m | n/m | ||
$807 | $664 | $396 | 22% | 104% | ||
Pretax Operating Margin by Division |
||||||
Digital & Integration | 33.5% | 32.0% | 17.4% | 147 bps | 1,606 bps | |
Reservoir Performance | 14.0% | 10.2% | 1.9% | 373 bps | 1,206 bps | |
Well Construction | 12.9% | 10.8% | 8.6% | 209 bps | 427 bps | |
Production Systems | 10.2% | 8.7% | 9.3% | 146 bps | 84 bps | |
n/m | n/m | n/m | n/m | n/m | ||
14.3% | 12.7% | 7.4% | 162 bps | 694 bps | ||
*Schlumberger divested its OneStim® pressure pumping business in North America during the fourth quarter of 2020. This business generated revenue of $140 million during the second quarter of 2020. Excluding the impact of this divestiture, second-quarter 2021 revenue increased 8% year-on-year. **Schlumberger divested its low-flow artificial lift business in North America during the fourth quarter of 2020. This business generated revenue of $19 million during the second quarter of 2020. Excluding the impact of this divestiture, second-quarter 2021 revenue increased 9% year-on-year. n/m=not meaningful |
Schlumberger CEO Olivier Le Peuch commented, “Our second-quarter results demonstrate the broad strength of our portfolio, the extent of our market participation—both in North America and internationally—and our enhanced ability to capture and translate activity growth into sustained margin expansion and strong free cash flow. The quarter marks a leap forward in achieving our full-year financial targets with the potential for further upside given the right conditions. As I reflect on the progress we have made since last year, I want to acknowledge the entire Schlumberger team whose exemplary commitment to safety and performance has not wavered despite the challenges. Once again, I am extremely proud of our people for their dedication and resilience, and for delivering a strong quarter, clearly seizing the beginning of the upcycle.
“Second-quarter global revenue grew 8% sequentially, outperforming the rig count growth in both North America and the international markets. All four Divisions grew, resulting in the highest sequential quarterly revenue growth rate since the second quarter of 2017.
“In North America, revenue grew 11% sequentially, representing the highest sequential quarterly growth rate for this area since the third quarter of 2017. This performance was driven by US land revenue, which increased 19% due to higher drilling activity and increased sales of well and surface production systems. Well Construction revenue in US land grew more than 30% sequentially, significantly outperforming the rig count growth of 16%. In addition, Canada land revenue increased despite the spring breakup, due to higher Asset Performance Solutions (APS) project revenue, while North America offshore revenue was slightly higher due to sales of subsea production systems.
“International revenue grew 7% sequentially with all four Divisions registering growth. The revenue growth outpaced the international rig count increase—reflecting the depth and diversity of our portfolio—as activity surpassed the impact of the seasonal recovery in the Northern Hemisphere. Many countries posted double-digit sequential revenue growth.
“Globally, the second-quarter revenue growth was led by Reservoir Performance and Well Construction, where activity intensified beyond the seasonal recovery. Reservoir Performance revenue increased 12% sequentially due to the seasonal activity rebound in the Northern Hemisphere, in addition to higher exploration and appraisal activity. Well Construction revenue increased 9% sequentially from increased drilling activity in US land and broadly across the international markets, particularly offshore. Digital & Integration revenue increased 6% sequentially due to higher sales of digital solutions and higher APS project revenue. Production Systems revenue grew 6%, primarily due to higher sales of well, surface, and subsea production systems.
“Sequentially, second-quarter pretax segment operating income increased 22%. Pretax segment operating margin expanded by 162 basis points (bps) to 14% while adjusted EBITDA margin grew 118 bps to 21%. Adjusted EBITDA margin was the highest since 2018 and pretax segment operating margin reached its highest level since 2015. This performance highlights the impact of our capital stewardship and cost-out measures, which are providing us with significant operating leverage.
“Second-quarter cash flow from operations was $1.2 billion and free cash flow was $869 million. These amounts include a $477 million US federal tax refund. We are very pleased with our cash flow performance which is on track with our full-year target and enabled us to begin deleveraging the balance sheet during the quarter.
“While the rise of the COVID-19 Delta variant and resurgence of related disruptions could impact the pace of economic reopening, industry projections of oil demand reflect the anticipation of a wider vaccine-enabled recovery, improving road mobility, and the impact of various economic stimulus programs. Under this scenario, we believe the momentum of international activity growth that we experienced in the second quarter will continue as the cyclical recovery unfolds. This view is supported by rig count trends, capital spending signals, and customer feedback. In North America, we anticipate the growth rate to moderate; however, drilling activity could still surprise to the upside due to private E&P operator spending.
“Consequently, absent any further setback in the recovery, we continue to see our international revenue growing in the second half of 2021 by double-digits when compared to the second half of last year. This translates into full-year 2021 international revenue growth, setting the stage for a strong baseline as we move into 2022 and beyond.
“During the quarter, we also continued to execute our long-term strategy with advances in Digital and New Energy through our technology and unique partnerships. In addition, we accelerated our commitment to sustainability and decarbonization of our industry. In particular, we took definitive climate change action during the quarter and launched our Transition Technologies portfolio which will aid our clients in meeting their climate change ambitions. Finally, I am very proud that we announced our commitment to achieve net-zero emissions by 2050. Our net-zero emissions target is based on a verifiable, science-based approach that is aligned with the 1.5 degrees Celsius target of the Paris Agreement and includes our Scope 3 emissions.
“Overall, the second-quarter performance and the progress we made on our strategic targets align very well with our long-term financial ambition. We will seize the industry upcycle with strength in our core, will leverage the accretive impact of digital, and will continue building our portfolio of low-carbon energy ventures.
“I am truly excited about Schlumberger in the new industry landscape and our commitment to higher value and lower carbon for our people, our customers, our shareholders, and the global community.””
On June 28, 2021, Schlumberger repurchased $665 million of its outstanding 3.300% Senior Notes due September 2021.
On July 22, 2021, Schlumberger’s Board of Directors approved a quarterly cash dividend of $0.125 per share of outstanding common stock, payable on October 7, 2021 to stockholders of record on September 1, 2021.
(Stated in millions) | |||||||
Three Months Ended | Change | ||||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Sequential | Year-on-year | |||
North America* | $1,083 | $972 | $1,097 | 11% | -1% | ||
Latin America | 1,057 | 1,038 | 629 | 2% | 68% | ||
Europe/CIS/Africa | 1,453 | 1,256 | 1,449 | 16% | - | ||
Middle East & Asia | 2,001 | 1,917 | 2,146 | 4% | -7% | ||
Other | 40 | 40 | 35 | n/m | n/m | ||
$5,634 | $5,223 | $5,356 | 8% | 5% | |||
International | $4,511 | $4,211 | $4,224 | 7% | 7% | ||
North America* | $1,083 | $972 | $1,097 | 11% | -1% | ||
*Schlumberger divested certain businesses in North America during the fourth quarter of 2020. These businesses generated revenue
of $159 million during the second quarter of 2020. Excluding the impact of these divestitures, global second-quarter 2021 revenue
increased 8% year-on-year. North America second-quarter 2021 revenue, excluding the impact of these divestitures, increased 15%
year-on-year. n/m = not meaningful Certain prior period amounts have been reclassified to conform to the current period presentation. |
North America revenue of $1.1 billion increased 11% sequentially, with US land revenue growing 19% due to higher drilling activity and increased sales of well and surface production systems. The North America revenue increase represented the highest sequential quarterly growth rate since the third quarter of 2017. Well Construction revenue in US land grew more than 30% sequentially, outperforming the rig count growth of 16%. In addition, Canada land revenue increased despite the spring breakup due to higher APS project revenue, while offshore revenue was slightly higher due to sales of subsea production systems.
International revenue of $4.5 billion grew 7% sequentially outperforming the rig count growth. The revenue increases that all four Divisions experienced was driven by activity that strengthened beyond the impact of the seasonal recovery in the Northern Hemisphere, leading to double-digit sequential revenue growth in several countries.
Revenue in Latin America of $1.1 billion increased 2% sequentially due to double-digit sequential revenue growth in both Argentina and Guyana from higher Reservoir Performance intervention activity. In addition, Ecuador revenue increased due to higher Well Construction activity, partially offset by reduced drilling in Mexico and lower Production Systems revenue in Brazil following strong sales in the previous quarter.
Europe/CIS/Africa revenue of $1.5 billion increased 16% sequentially. This significant growth was driven by activity that strengthened beyond the impact of the seasonal recovery in the Northern Hemisphere, leading to double-digit sequential growth in most of the countries in the area. All four Divisions posted double-digit sequential revenue growth in the area, primarily from higher activity in digital solutions, stimulation, wireline, wellbore drilling including measurements, and fluids.
Revenue in the Middle East & Asia of $2.0 billion increased 4% sequentially. Growth was posted across all countries in the area except for India, which was impacted by COVID-related disruption. Double-digit sequential revenue growth was posted in Qatar, United Arab Emirates (UAE), and East Asia from higher Reservoir Performance and Well Construction activity. The revenue growth was driven by higher activity in wireline, intervention, stimulation, wellbore drilling including measurements, and fluids.
(Stated in millions) | ||||||
Three Months Ended | Change | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Sequential | Year-on-year | ||
Revenue | ||||||
International | $625 | $610 | $470 | 2% | 33% | |
North America | 191 | 161 | 145 | 19% | 32% | |
Other | 1 | 2 | 4 | n/m | n/m | |
$817 | $773 | $619 | 6% | 32% | ||
Pretax operating income | $274 | $247 | $108 | 11% | 154% | |
Pretax operating margin | 33.5% | 32.0% | 17.4% | 147 bps | 1,606 bps | |
n/m = not meaningful |
Digital & Integration revenue of $817 million increased 6% sequentially due to strong sales of digital solutions and higher APS project revenue partially offset by lower sales of multiclient seismic data licenses. Growth was led by Canada land from higher APS revenue in addition to higher digital solutions sales in Europe/CIS/Africa.
Digital & Integration pretax operating margin of 33% expanded 147 bps sequentially due to increased high-margin digital solutions sales and improved profitability from APS projects.
(Stated in millions) | ||||||
Three Months Ended | Change | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Sequential | Year-on-year | ||
Revenue* | ||||||
International | $1,038 | $922 | $952 | 13% | 9% | |
North America* | 79 | 78 | 215 | - | -63% | |
Other | - | 2 | 3 | n/m | n/m | |
$1,117 | $1,002 | $1,170 | 12% | -4% | ||
Pretax operating income | $156 | $102 | $22 | 52% | 609% | |
Pretax operating margin | 13.9% | 10.2% | 1.9% | 373 bps | 1,206 bps | |
*Schlumberger divested its OneStim pressure pumping business in North America during the fourth quarter of 2020. This business generated revenue of $140 million during the second quarter of 2020. Excluding the impact of this divestiture, global second-quarter 2021 revenue increased 8% year-on-year. North America second-quarter 2021 revenue, excluding the impact of this divestiture, increased 5% year-on-year. n/m = not meaningful |
Reservoir Performance revenue of $1.1 billion increased 12% sequentially due to higher activity that surpassed the impact of the seasonal rebound in the Northern Hemisphere, resulting in double-digit sequential revenue growth internationally. Growth was driven by seasonal rebound of activity in Russia, China, and Europe and higher offshore exploration in Guyana and Angola, benefiting wireline and testing activity. Higher activity was also posted in Argentina, Qatar, and the UAE.
Reservoir Performance pretax operating margin of 14% expanded 373 bps sequentially. Profitability was boosted by the seasonal recovery in the Northern Hemisphere, higher offshore and exploration activity, and favorable technology mix in wireline activity in Africa and in the Middle East.
(Stated in millions) | ||||||
Three Months Ended | Change | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Sequential | Year-on-year | ||
Revenue | ||||||
International | $1,708 | $1,577 | $1,704 | 8% | - | |
North America | 352 | 310 | 331 | 13% | 6% | |
Other | 50 | 48 | 54 | n/m | n/m | |
$2,110 | $1,935 | $2,089 | 9% | 1% | ||
Pretax operating income | $272 | $209 | $180 | 30% | 51% | |
Pretax operating margin | 12.9% | 10.8% | 8.6% | 209 bps | 427 bps | |
n/m = not meaningful |
Well Construction revenue of $2.1 billion increased 9% sequentially. Stronger North America and international activity beyond the seasonal rebound in the Northern Hemisphere was supported by the rig count increase. North America revenue growth was driven by US land revenue growth of more than 30%, outpacing the US land rig count increase of 16%, but partially offset by the decline in Canada land revenue due to the spring breakup. International growth was led by double-digit growth in Ecuador, the United Kingdom, Algeria, Angola, Gabon, Nigeria, Russia, Qatar, Iraq, East Asia, and Australia.
Sequentially, Well Construction pretax operating margin of 13% improved by 209 bps due to higher drilling activity following the seasonal recovery in the Northern Hemisphere, higher drilling in US land, increased volume of activity in Europe & Africa and the Middle East, and increased higher-margin offshore exploration activity in Africa.
(Stated in millions) | ||||||
Three Months Ended | Change | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Sequential | Year-on-year | ||
Revenue* | ||||||
International | $1,220 | $1,161 | $1,146 | 5% | 6% | |
North America* | 458 | 420 | 409 | 9% | 12% | |
Other | 3 | 9 | 2 | n/m | n/m | |
$1,681 | $1,590 | $1,557 | 6% | 8% | ||
Pretax operating income | $171 | $138 | $145 | 24% | 18% | |
Pretax operating margin | 10.2% | 8.7% | 9.3% | 146 bps | 84 bps | |
*Schlumberger divested its low-flow artificial lift business in North America during the fourth quarter of 2020. This business generated revenue of $19 million during the second quarter of 2020. Excluding the impact of this divestiture, global second-quarter 2021 revenue increased 9% year-on-year. North America second-quarter revenue, excluding the impact of this divestiture, increased 17% year-on-year. n/m = not meaningful |
Production Systems revenue of $1.7 billion increased 6% sequentially. The revenue increase was led by double-digit revenue growth in Russia, the United Kingdom, Norway, Kazakhstan, Turkey, Algeria, China, Kuwait, Qatar, UAE, and Mexico. US land also posted double-digit revenue growth on strong sales of surface and well production systems, outpacing the increase in drilling and completed well counts. Overall revenue growth was driven by higher sales of surface, subsea, and well production systems.
Sequentially, Production Systems pretax operating margin of 10% expanded 146 bps, due to improved profitability from higher sales of surface, well, and subsea production systems.
Schlumberger’s technology integration, with deep domain knowledge and performance differentiation, continues to earn the confidence of our customers globally. This is reflected in a considerable pipeline of new contract awards across geographies that will drive future growth in Well Construction and Reservoir Performance. Some notable contract awards during the quarter include:
In the offshore markets, Schlumberger Production Systems is positioned to benefit significantly from the recovery by leveraging our subsea technologies, in-country value creation, domain support, and integration capabilities. This differentiated approach is being recognized with increasing awards, resulting in a notable step up in book-to-bill ratio during the quarter. Awards include:
Schlumberger’s technology innovation continues to unlock potential for our customers around the world as they increasingly focus on extracting higher value from their assets. During the second quarter, Schlumberger new technologies were adopted at an increasing pace. For example, notable first-time deployments include:
In North America, Well Construction technology, market access, and digital enablement continue to support our broad customer base to achieve new performance benchmarks across multiple basins. These benchmark performances include new drilling records, increased reservoir contact, and higher efficiency. Examples during the quarter include:
Schlumberger continues to scale its digital platform strategy with best-in-class partners, removing barriers to adoption, and providing access to every customer in every basin. Examples from the quarter include:
Schlumberger’s Transition Technology portfolio of solutions can help customers decarbonize operations by eliminating flaring, reducing fugitive emissions, minimizing CO2 footprint, and expanding electrification. In addition, Schlumberger technology is increasingly being applied to adjacent, low-carbon and zero-carbon energy opportunities.
1) What is the capital investment guidance for the full-year 2021?
Capital investment (comprised of capex, multiclient, and APS investments) for the full-year 2021 is still expected to be between $1.5 to $1.7 billion. Capital investment in 2020 was $1.5 billion.
2) What were cash flow from operations and free cash flow for the second quarter of 2021?
Cash flow from operations for the second quarter of 2021 was $1.2 billion and free cash flow was $869 million, despite making $72 million of severance payments during the quarter. These amounts include a $477 million US federal tax refund.
3) What was included in “Interest and other income” for the second quarter of 2021?
“Interest and other income” for the second quarter of 2021 was $16 million. This amount consisted of earnings of equity method investments of $10 million, and interest income of $6 million.
4) How did interest income and interest expense change during the second quarter of 2021?
Interest income of $6 million for the second quarter of 2021 was essentially flat sequentially. Interest expense of $136 million was flat sequentially.
5) What is the difference between Schlumberger’s consolidated income (loss) before taxes and pretax segment operating income?
The difference consists of corporate items, charges and credits, and interest income and interest expense not allocated to the segments as well as stock-based compensation expense, amortization expense associated with certain intangible assets, certain centrally managed initiatives, and other nonoperating items.
6) What was the effective tax rate (ETR) for the second quarter of 2021?
The ETR for the second quarter of 2021 was 18.2% as compared to 19.2% for the first quarter of 2021.
7) How many shares of common stock were outstanding as of June 30, 2021 and how did this change from the end of the previous quarter?
There were 1.398 billion shares of common stock outstanding as of June 30, 2021 and March 31, 2021.
(Stated in millions) | ||
Shares outstanding at March 31, 2021 | 1,398 | |
Shares issued under employee stock purchase plan | - | |
Vesting of restricted stock | - | |
Shares outstanding at June 30, 2021 | 1,398 |
8) What was the weighted average number of shares outstanding during the second quarter of 2021 and first quarter of 2021? How does this reconcile to the average number of shares outstanding, assuming dilution, used in the calculation of diluted earnings per share?
The weighted average number of shares outstanding was 1.398 billion during the second quarter of 2021 and 1.398 billion during the first quarter of 2021. The following is a reconciliation of the weighted average shares outstanding to the average number of shares outstanding, assuming dilution, used in the calculation of diluted earnings per share.
(Stated in millions) | |||
Second Quarter 2021 |
First Quarter 2021 |
||
Weighted average shares outstanding | 1,398 | 1,398 | |
Unvested restricted stock | 23 | 21 | |
Average shares outstanding, assuming dilution | 1,421 | 1,419 |
9) What was Schlumberger’s adjusted EBITDA in the second quarter of 2021, the first quarter of 2021, and the second quarter of 2020?
Schlumberger’s adjusted EBITDA was $1.198 billion in the second quarter of 2021, $1.049 billion in the first quarter of 2021, and $838 million in the second quarter of 2020, and was calculated as follows:
(Stated in millions) | ||||
Second Quarter 2021 |
First Quarter 2021 |
Second Quarter 2020 |
||
Net income (loss) attributable to Schlumberger | $431 | $299 | $(3,434) | |
Net income attributable to noncontrolling interests | 12 | 13 | 6 | |
Tax (benefit) expense | 99 | 74 | (199) | |
Income (loss) before taxes | $542 | $386 | $(3,627) | |
Charges & credits | - | - | 3,724 | |
Depreciation and amortization | 526 | 532 | 604 | |
Interest expense | 136 | 136 | 144 | |
Interest income | (6) | (5) | (7) | |
Adjusted EBITDA | $1,198 | $1,049 | $838 |
Adjusted EBITDA represents income before taxes excluding charges & credits, depreciation and amortization, interest expense, and interest income. Management believes that adjusted EBITDA is an important profitability measure for Schlumberger and that it allows investors and management to more efficiently evaluate Schlumberger’s operations period over period and to identify operating trends that could otherwise be masked. Adjusted EBITDA is also used by management as a performance measure in determining certain incentive compensation. Adjusted EBITDA should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP.
10) What were the components of depreciation and amortization expense for the second quarter of 2021, the first quarter of 2021, and the second quarter of 2020?
The components of depreciation and amortization expense for the second quarter of 2021, the first quarter of 2021, and the second quarter of 2020 were as follows:
(Stated in millions) | ||||
Second Quarter 2021 |
First Quarter 2021 |
Second Quarter 2020 |
||
Depreciation of fixed assets | $352 | $355 | $417 | |
Amortization of APS investments | 77 | 75 | 58 | |
Amortization of intangible assets | 75 | 76 | 80 | |
Amortization of multiclient seismic data costs capitalized | 22 | 26 | 49 | |
$526 | $532 | $604 |
Schlumberger (SLB: NYSE) is a technology company that partners with customers to access energy. Our people, representing over 160 nationalities, are providing leading digital solutions and deploying innovative technologies to enable performance and sustainability for the global energy industry. With expertise in more than 120 countries, we collaborate to create technology that unlocks access to energy for the benefit of all.
Find out more at www.slb.com
*Mark of Schlumberger or a Schlumberger company.
Other company, product, and service names are the properties of their respective owners.
Schlumberger will hold a conference call to discuss the earnings press release and business outlook on Friday, July 23, 2021. The call is scheduled to begin at 9:30 a.m. US Eastern Time. To access the call, which is open to the public, please contact the conference call operator at +1 (844) 721-7241 within North America, or +1 (409) 207-6955 outside North America, approximately 10 minutes prior to the call’s scheduled start time, and provide the access code 8858313. At the conclusion of the conference call, an audio replay will be available until August 23, 2021 by dialing +1 (866) 207-1041 within North America, or +1 (402) 970-0847 outside North America, and providing the access code 6752598. The conference call will be webcast simultaneously at www.slb.com/irwebcast on a listen-only basis. A replay of the webcast will also be available at the same website until August 23, 2021.
Ndubuisi Maduemezia – Vice President of Investor Relations, Schlumberger Limited
Joy V. Domingo – Director of Investor Relations, Schlumberger Limited
Office +1 (713) 375-3535
investor-relations@slb.com
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This second-quarter 2021 earnings release, 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,” “forecast,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “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 our financial and performance targets and other forecasts or expectations regarding, or dependent on, our business outlook; growth for Schlumberger as a whole and for each of its Divisions (and for specified business lines, geographic areas, or technologies within each Division); oil and natural gas demand and production growth; oil and natural gas prices; forecasts or expectations regarding the energy transition and global climate change; improvements in operating procedures and technology; capital expenditures by Schlumberger and the oil and gas industry; our business strategies, including digital and “fit for basin,” as well as the strategies of our customers; our effective tax rate; our APS projects, joint ventures, and other alliances; our response to, and preparedness for, the COVID-19 pandemic and other widespread health emergencies; access to raw materials; future global economic and geopolitical conditions; future liquidity; 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 conditions; changes in exploration and production spending by Schlumberger’s customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of Schlumberger’s customers and suppliers; Schlumberger’s inability to achieve its financial and performance targets and other forecasts and expectations; Schlumberger’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; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays, or cancellations; challenges in Schlumberger’s supply chain; production declines; Schlumberger’s inability to recognize efficiencies and other intended benefits from its business strategies and initiatives, such as digital or Schlumberger New Energy; as well as its restructuring and structural cost reduction plans; 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 second-quarter 2021 earnings release and our most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission. 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 outcomes may vary materially from those reflected in our forward-looking statements. Statements in this second-quarter earnings release are made as of the date of this release, and Schlumberger disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise.
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