Published: 01/21/2022
Published: 01/21/2022
Q4 2021 Earnings Release, with Financial Tables (366 KB PDF)
Q4 2021 Earnings Conference Call Prepared Remarks (144 KB PDF)
Q4 2021 Earnings Conference Call Transcript (196 KB PDF)
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HOUSTON, January 21, 2022—Schlumberger Limited (NYSE: SLB) today reported results for the fourth-quarter and full-year 2021.
(Stated in millions, except per share amounts) | ||||||
Three Months Ended | Change | |||||
Dec. 31, 2021 | Sept. 30, 2021 | Dec. 31 2020 | Sequential | Year-on-year | ||
Revenue* | $6,225 | $5,847 | $5,532 | 6% | 13% | |
Income before taxes - GAAP basis | $755 | $691 | $471 | 9% | 60% | |
Net income - GAAP basis | $601 | $550 | $374 | 9% | 61% | |
Diluted EPS - GAAP basis | $0.42 | $0.39 | $0.27 | 8% | 56% | |
Adjusted EBITDA** |
$1,381 |
$1,296 |
$1,112 |
7% |
24% |
|
Adjusted EBITDA margin** | 22.2% | 22.2% | 20.1% | 2 bps | 208 bps | |
Pretax segment operating income** | $986 | $908 | $654 | 9% | 51% | |
Pretax segment operating margin** | 15.8% | 15.5% | 11.8% | 31 bps | 401 bps | |
Net income, excluding charges & credits** | $587 | $514 | $309 | 14% | 90% | |
Diluted EPS, excluding charges & credits** | $0.41 | $0.36 | $0.22 | 14% | 86% | |
Revenue by Geography |
||||||
International | $4,898 | $4,675 | $4,343 | 5% | 13% | |
North America* |
1,281 | 1,129 | 1,167 | 13% | 10% | |
46 | 43 | 22 | n/m | n/m | ||
$6,225 | $5,847 | $5,532 | 6% | 13% | ||
*Schlumberger divested certain businesses in North America during the fourth quarter of 2020. These businesses generated revenue of $284 million during the fourth quarter of 2020. Excluding the impact of these divestitures, global fourth-quarter 2021 revenue increased 19% year-on-year. North America fourth-quarter 2021 revenue, excluding the impact of these divestitures, increased 45% 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 | ||||||
Dec. 31, 2021 | Sept. 30, 2021 | Dec. 31 2020 | Sequential | Year-on-year | |||
Revenue by Division | |||||||
Digital & Integration | $889 | $812 | $832 | 10% | 7% | ||
Reservoir Performance* | 1,287 | 1,192 | 1,247 | 8% | 3% | ||
Well Construction | 2,388 | 2,273 | 1,868 | 5% | 28% | ||
Production Systems** | 1,765 | 1,674 | 1,649 | 5% | 7% | ||
Other | (104) | (104) | (64) | n/m | n/m | ||
$6,225 | $5,847 | $5,532 | 6% | 13% | |||
Pretax Operating Income by Division |
|||||||
Digital & Integration | $335 | $284 | $269 | 18% | 25% | ||
Reservoir Performance | 200 | $190 | 95 | 5% | 111% | ||
Well Construction | 368 | $345 | 183 | 6% | 101% | ||
Production Systems | 159 | $166 | 155 | -4% | 3% | ||
Other | (76) | $(77) | (48) | n/m | n/m | ||
$986 | $908 | $654 | 9% | 51% | |||
Pretax Operating Margin by Division |
|||||||
Digital & Integration | 37.7% | 35.0% | 32.4% | 268 bps | 537 bps | ||
Reservoir Performance | 15.5% | 16.0% | 7.6% | -43 bps | 792 bps | ||
Well Construction | 15.4% | 15.2% | 9.8% | 20 bps | 559 bps | ||
Production Systems | 9.0% | 9.9% | 9.4% | -85 bps | -38 bps | ||
Other | n/m | n/m | n/m | n/m | n/m | ||
15.8% | 15.5% | 11.8% | 31 bps | 401 bps | |||
*Schlumberger divested its OneStim® pressure pumping business in North America during the fourth quarter of 2020. This business generated revenue of $274 million during the fourth quarter of 2020. Excluding the impact of this divestiture, Reservoir Performance fourth-quarter 2021 revenue increased 32% 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 $11 million during the fourth quarter of 2020. Excluding the impact of this divestiture, Production Systems fourth-quarter 2021 revenue increased 8% year-on-year. n/m = not meaningful |
Schlumberger CEO Olivier Le Peuch commented, “Strengthening activity, accelerating digital sales, and outstanding free cash flow performance combined to deliver another quarter of remarkable financial results to close the year with great momentum.
“In retrospect, we started 2021 with a constructive outlook and an ambition to visibly expand margins and deliver robust free cash flow, while remaining focused on capital discipline.
“In fact, we concluded the year with 88% growth in EPS, excluding charges and credits; adjusted EBITDA margin of 21.5%; and $3.0 billion in free cash flow. The adjusted EBITDA margin—which represents a year-on-year expansion of 320 basis points (bps)—is the highest level since 2018. We restored our North America pretax operating margin to double-digits and expanded our international margin, both exceeding prepandemic 2019 levels.
“This was also a momentous year for us in terms of our commitment to sustainability. We announced our comprehensive 2050 net-zero commitment, inclusive of Scope 3 emissions, and launched our Transition Technologies* portfolio.
“I am extremely proud of the full-year results, as we operationalized our returns-focused strategy and surpassed our financial ambitions with resounding success.
“Turning to the fourth-quarter results, sequential revenue growth was broad based across all geographies and Divisions, led by Digital & Integration.
“International revenue of $4.90 billion grew 5% sequentially, driven primarily by strengthening activity, increased digital sales, and early benefits of pricing improvements. The sequential revenue increase was led by growth in Europe/CIS/Africa due to strong offshore activity in Africa and new projects in Europe. This growth was complemented by project startups and activity gains in the Middle East & Asia and sustained activity growth in Latin America. The fourth-quarter international revenue performance represents a 13% year-on-year increase, enabling us to accomplish our double-digit revenue growth ambition for the second half of 2021 when compared to the same period in 2020.
“In North America, revenue of $1.28 billion grew 13% sequentially, outperforming the rig count growth. The sequential growth was driven by strong offshore and land drilling activity and increased exploration data licensing in the US Gulf of Mexico and the Permian.
“Among the Divisions, Digital & Integration revenue increased 10% sequentially, driven by very strong digital sales, as the adoption of our digital offering continues to accelerate, and from increased exploration data licensing sales. Reservoir Performance revenue increased 8% sequentially from higher intervention activity in Latin America, new stimulation projects and activity gains in the Middle East & Asia, and increased offshore evaluation activity in North America. Well Construction revenue increased 5% due to higher land and offshore drilling activity both in North America and internationally. Similarly, Production Systems revenue grew 5% sequentially from new offshore projects and year-end sales.
“Overall, our fourth-quarter pretax segment operating income increased 9% sequentially, attaining the highest quarterly operating margin level since 2015. Contributing to this remarkable performance are the accretive effect of accelerating digital sales and early signs of pricing improvements, particularly when driven by new technology adoption and performance differentiation.
“Looking ahead into 2022, the industry macro fundamentals are very favorable, due to the combination of projected steady demand recovery, an increasingly tight supply market, and supportive oil prices. We believe this will result in a material step up in industry capital spending with simultaneous double-digit growth in international and North American markets. Absent any further COVID-related disruption, oil demand is expected to exceed prepandemic levels before the end of the year and to further strengthen in 2023. These favorable market conditions are strikingly similar to those experienced during the last industry supercycle, suggesting that resurgent global demand-led capital spending will result in an exceptional multiyear growth cycle.
“Schlumberger is well prepared to fully seize this growth ahead of us. We have entered this cycle in a position of strength, having reset our operating leverage, expanded peer-leading margins across multiple quarters, and aligned our technology and business portfolio with the new industry imperatives. Throughout 2021, we continued to strengthen our core portfolio, enhanced our sustainability leadership, successfully advanced our digital journey, and expanded our new energy portfolio.
“The combination of our performance and returns-focused strategy is resulting in enduring customer success and higher earnings. As such, we have increased confidence in reaching our midcycle adjusted EBITDA margin ambition earlier than anticipated and sustaining our financial outperformance. I am truly excited about this year and the outlook for Schlumberger—rooted in capital discipline and superior returns while also continuing to lead technology, digital, and clean energy innovation—to enable performance and sustainability for the global energy industry.”
On November 30, 2021, Schlumberger deposited sufficient funds with the trustee for its $1.0 billion of 2.40% Senior Notes due May 2022 to satisfy and discharge all of its legal obligations relating to such notes.
On January 20, 2022, Schlumberger’s Board of Directors approved a quarterly cash dividend of $0.125 per share of outstanding common stock, payable on April 7, 2022 to stockholders of record on February 9, 2022.
(Stated in millions) | |||||||
Three Months Ended | Change | ||||||
Dec. 31, 2021 | Sept. 30, 2021 | Dec. 31 2020 | Sequential | Year-on-year | |||
North America* | $1,281 | $1,129 | $1,167 | 13% | 10% | ||
Latin America | 1,204 | 1,160 | 969 | 4% | 24% | ||
Europe/CIS/Africa | 1,587 | 1,482 | 1,366 | 7% | 16% | ||
Middle East & Asia | 2,107 | 2,033 | 2,008 | 4% | 5% | ||
Other | 46 | 43 | 22 | n/m | n/m | ||
$6,225 | $5,847 | $5,532 | 6% | 13% | |||
International | $4,898 | $4,675 | $4,343 | 5% | 13% | ||
North America* | $1,281 | $1,129 | $1,167 | 13% | 10% | ||
*Schlumberger divested certain businesses in North America during the fourth quarter of 2020. These businesses generated
revenue of $284 million during the fourth quarter of 2020. Excluding the impact of these divestitures, global fourth-quarter 2021
revenue increased 19% year-on-year. North America fourth-quarter 2021 revenue, excluding the impact of these divestitures, increased 45% year-on-year. n/m = not meaningful |
North America revenue of $1.28 billion increased 13% sequentially, driven by strong offshore and land drilling activity and increased exploration data licensing in the US Gulf of Mexico and the Permian.
Revenue in Latin America of $1.20 billion increased 4% sequentially due to double-digit revenue growth in Argentina, Brazil, and Mexico, mainly from robust Well Construction activity. Reservoir Performance and Production Systems revenue also increased but was partially offset by a temporary production interruption in our Asset Performance Solutions (APS) projects in Ecuador due to pipeline disruption.
Europe/CIS/Africa revenue of $1.59 billion increased 7% sequentially, due to higher revenue in Europe and Africa driven by strong offshore activity, increased digital sales, and new projects—mainly in Turkey—that benefited Production Systems. These increases, however, were partially offset by reduced Reservoir Performance and Well Construction activity in Russia and Scandinavia due to the onset of seasonal effects.
Revenue in the Middle East & Asia of $2.11 billion increased 4% sequentially due to new projects and activity gains that benefited Reservoir Performance in Saudi Arabia, Oman, Australia, Qatar, Indonesia, and Iraq. Similarly, Well Construction revenue grew from new projects in Iraq and the United Arab Emirates, and from increased drilling activity in Qatar, Kuwait, and Indonesia. Growth was also driven by higher digital sales in China and Malaysia. These increases, however, were partially offset by lower sales of production systems due to delivery delays as a result of logistics constraints.
(Stated in millions) | ||||||
Three Months Ended | Change | |||||
Dec. 31, 2021 | Sept. 30, 2021 | Dec. 31 2020 | Sequential | Year-on-year | ||
Revenue | ||||||
International | $624 | $615 | $688 | 1% | -9% | |
North America | 263 | 196 | 142 | 34% | 85% | |
Other | 2 | 1 | 2 | n/m | n/m | |
$889 | $812 | $832 | 10% | 7% | ||
Pretax operating income | $335 | $284 | $269 | 18% | 25% | |
Pretax operating margin | 37.7% | 35.0% | 32.4% | 268 bps | 537 bps | |
n/m = not meaningful |
Digital & Integration revenue of $889 million increased 10% sequentially, propelled by accelerated digital sales internationally, particularly in Europe/CIS/Africa and Middle East & Asia, and increased exploration data licensing sales in North America offshore and the Permian. These increases, however, were partially offset by the effects of a temporary production interruption in our APS projects in Ecuador due to pipeline disruption.
Digital & Integration pretax operating margin of 38% expanded 268 bps sequentially, due to improved profitability in digital and exploration data licensing.
(Stated in millions) | ||||||
Three Months Ended | Change | |||||
Dec. 31, 2021 | Sept. 30, 2021 | Dec. 31 2020 | Sequential | Year-on-year | ||
Revenue* | ||||||
International | $1,194 | $1,112 | $906 | 7% | 32% | |
North America* | 92 | 79 | 339 | 16% | -73% | |
Other | 1 | 1 | 2 | n/m | n/m | |
$1,287 | $1,192 | $1,247 | 8% | 3% | ||
Pretax operating income | $200 | $190 | $95 | 5% | 111% | |
Pretax operating margin | 15.5% | 16.0% | 7.6% | -43 bps | 792 bps | |
*Schlumberger divested its OneStim pressure pumping business in North America during the fourth quarter of 2020. This business generated revenue of $274 million during the fourth quarter of 2020. Excluding the impact of this divestiture, global fourth-quarter 2021 revenue increased 32% year-on-year. North America fourth-quarter 2021 revenue, excluding the impact of this divestiture, increased 42% year-on-year. n/m = not meaningful |
Reservoir Performance revenue of $1.29 billion increased 8% sequentially due to higher intervention activity across the international offshore markets, mainly in the UK and Latin America, and from new stimulation projects and activity gains in the Middle East & Asia, particularly in Saudi Arabia. These increases, however, were partially offset by the onset of seasonal effects in Russia and Scandinavia. North America revenue grew from higher offshore evaluation activity.
Reservoir Performance pretax operating margin of 16% was essentially flat sequentially. Profitability improved from higher offshore and exploration activity but was offset by technology mix and seasonality effects in the Northern Hemisphere.
(Stated in millions) | ||||||
Three Months Ended | Change | |||||
Dec. 31, 2021 | Sept. 30, 2021 | Dec. 31 2020 | Sequential | Year-on-year | ||
Revenue | ||||||
International | $1,901 | $1,839 | $1,569 | 3% | 21% | |
North America | 441 | 382 | 252 | 15% | 75% | |
Other | 46 | 52 | 47 | n/m | n/m | |
$2,388 | $2,273 | $1,868 | 5% | 28% | ||
Pretax operating income | $368 | $345 | $183 | 6% | 101% | |
Pretax operating margin | 15.4% | 15.2% | 9.8% | 20 bps | 559 bps | |
n/m = not meaningful |
Well Construction revenue of $2.39 billion increased 5% sequentially, driven by higher measurements and drilling fluids activity and increased drilling equipment sales. North America revenue increased due to higher rig count on land and increased well construction activity in the US Gulf of Mexico. International revenue growth was driven by the double-digit growth in Latin America, mainly in Mexico and Argentina, in Sub-Sahara Africa, and in the Middle East in Kuwait, Qatar, Iraq, and UAE. These increases were partially offset by seasonal effects in Russia and Scandinavia.
Well Construction pretax operating margin of 15% was essentially flat sequentially as the favorable mix of increased activity and new technology was offset by seasonal effects in the Northern Hemisphere.
(Stated in millions) | ||||||
Three Months Ended | Change | |||||
Dec. 31, 2021 | Sept. 30, 2021 | Dec. 31 2020 | Sequential | Year-on-year | ||
Revenue* | ||||||
International | $1,278 | $1,205 | $1,215 | 6% | 5% | |
North America* | 484 | 469 | 433 | 3% | 12% | |
Other | 3 | 0 | 1 | n/m | n/m | |
$1,765 | $1,674 | $1,649 | 5% | 7% | ||
Pretax operating income | $159 | $166 | $155 | -4% | 3% | |
Pretax operating margin | 9.0% | 9.9% | 9.4% | -85 bps | -38 bps | |
*Schlumberger divested its low-flow artificial lift business in North America during the fourth quarter of 2020. This business generated revenue of $11 million during the fourth quarter of 2020. Excluding the impact of this divestiture, global fourth-quarter 2021 revenue increased 8% year-on-year. North America fourth-quarter revenue, excluding the impact of this divestiture, increased 15% year-on-year. n/m = not meaningful |
Production Systems revenue of $1.76 billion increased 5% sequentially. Revenue increases in subsea, well production, and midstream production systems were offset by a revenue decline in surface production systems. International activity was driven by double-digit growth in Europe/CIS/Africa—mainly from strong project progress in Angola, Gabon, and Mozambique, new projects in Turkey, and increased activity in Scandinavia and Russia & Central Asia—and by growth in Latin America, mainly in Brazil and Ecuador. This revenue growth was partially offset by delivery delays in the Middle East & Asia as a result of global supply and logistics constraints.
Production Systems pretax operating margin of 9% declined 85 bps sequentially due to an unfavorable mix and the impact of delayed deliveries due to global supply and logistics constraints.
As activity growth accelerates, Schlumberger’s performance differentiation, technology, and integration capabilities continue to earn customer recognition and contract awards for all types of oil and gas projects, from short- and long-cycle development to exploration—including offshore and deepwater. Awards from the quarter include:
Schlumberger technologies—which won an array of innovation awards in 2021, including an Offshore Technology Conference Spotlight on New Technology, six World Oil Awards, and two Hart Energy's E&P Meritorious Awards for Engineering Innovation—and peer-leading execution capabilities are making significant performance impacts for customers, who are increasingly adopting technologies that help them create differentiated value.
Examples of performance impact during the quarter in North America include:
Examples of performance impact during the quarter internationally include:
The adoption of Schlumberger’s comprehensive digital platform continues to accelerate as customers advance their digital transformation and apply digital solutions to improve productivity and efficiency. Furthermore, the use cases for Schlumberger digital solutions also continue to expand into adjacent sectors, increasing the total addressable market and enabling decarbonization in and beyond the oil and gas industry.
Digital awards and implementations from the quarter include:
Decarbonization is a priority, and in 2021, Schlumberger made a bold commitment to achieve net-zero greenhouse gas emissions by 2050, with our net-zero target inclusive of Scope 3 emissions.
Schlumberger is uniquely positioned to help customers decarbonize oil and gas operations through our Transition Technologies portfolio and the novel application of our technologies in low-carbon energy:
In Schlumberger New Energy, we are forging partnerships to apply a portfolio of low-carbon and carbon-neutral energy technologies across industries, contributing to a more sustainable future energy mix.
1) What is the capital investment guidance for the full-year 2022?
Capital investment (comprised of capex, multiclient, and APS investments) for the full-year 2022 is expected to be between $1.9 and $2.0 billion. Capital investment for the full-year 2021 was $1.7 billion.
2) What were cash flow from operations and free cash flow for the fourth quarter of 2021?
Cash flow from operations for the fourth quarter of 2021 was $1.93 billion and free cash flow was $1.30 billion, despite making $22 million of severance payments during the quarter.
3) What were cash flow from operations and free cash flow for the full year of 2021?
Cash flow from operations for the full year of 2021 was $4.65 billion and free cash flow was $3.00 billion, despite making $248 million of severance payments during the year.
4) What was included in “Interest and other income” for the fourth quarter of 2021?
“Interest and other income” for the fourth quarter of 2021 was $57 million. This consisted of a gain on the sale of 9.5 million shares of Liberty Oilfield Services (Liberty) of $28 million (refer to Question 12), interest income of $15 million, and earnings of equity method investments of $14 million.
5) How did interest income and interest expense change during the fourth quarter of 2021?
Interest income of $15 million for the fourth quarter of 2021 increased $7 million sequentially. Interest expense of $137 million increased $7 million sequentially (refer to Question 12).
6) 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.
7) What was the effective tax rate (ETR) for the fourth quarter of 2021?
The ETR for the fourth quarter of 2021, calculated in accordance with GAAP, was 19.1% as compared to 18.6% for the third quarter of 2021. Excluding charges and credits, the ETR for the fourth quarter of 2021 was 19.0% as compared to 18.3% for the third quarter of 2021.
8) How many shares of common stock were outstanding as of December 31, 2021 and how did this change from the end of the previous quarter?
There were 1.403 billion shares of common stock outstanding as of both December 31, 2021 and September 30, 2021.
9) What was the weighted average number of shares outstanding during the fourth quarter of 2021 and third 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 1.403 billion during the fourth quarter of 2021 and 1.402 billion during the third 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) | |||
Fourth Quarter 2021 |
Third Quarter 2021 |
||
Weighted average shares outstanding | 1,403 | 1,402 | |
Unvested restricted stock | 27 | 22 | |
Average shares outstanding, assuming dilution | 1,430 | 1,424 |
10) What was Schlumberger’s adjusted EBITDA in the fourth quarter of 2021, the third quarter of 2021, and the fourth quarter of 2020, full-year 2021, and full-year 2020?
Schlumberger’s adjusted EBITDA was $1.381 billion in the fourth quarter of 2021, $1.296 billion in the third quarter of 2021, and $1.112 billion in the fourth quarter of 2020, and was calculated as follows:
(Stated in millions) | ||||
Fourth Quarter 2021 |
Third Quarter 2021 |
Fourth Quarter 2020 |
||
Net income attributable to Schlumberger | $601 | $550 | $374 | |
Net income attributable to noncontrolling interests | 10 | 12 | 8 | |
Tax expense | 144 | 129 | 89 | |
Income before taxes | $755 | $691 | $471 | |
Charges & credits | (18) | (47) | (81) | |
Depreciation and amortization | 532 | 530 | 583 | |
Interest expense | 127 | 130 | 144 | |
Interest income | (15) | (8) | (5) | |
Adjusted EBITDA | $1,381 | $1,296 | $1,112 |
Schlumberger’s adjusted EBITDA was $4.925 billion in full-year 2021 and $4.313 billion in full-year 2020, and was calculated as follows:
(Stated in millions) | |||
2021 | 2020 | ||
Net income (loss) attributable to Schlumberger | $1,881 | $(10,518) | |
Net income attributable to noncontrolling interests | 47 | 32 | |
Tax expense (benefit) | 446 | (812) | |
Income (loss) before taxes | $2,374 | $(11,298) | |
Charges & credits | (65) | 12,515 | |
Depreciation and amortization | 2,120 | 2,566 | |
Interest expense | 529 | 563 | |
Interest income | (33) | (33) | |
Adjusted EBITDA | $4,925 | $4,313 |
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.
11) What were the components of depreciation and amortization expense for the fourth quarter of 2021, the third quarter of 2021, and the fourth quarter of 2020?
The components of depreciation and amortization expense for the fourth quarter of 2021, the third quarter of 2021, and the fourth quarter of 2020 were as follows:
(Stated in millions) | ||||
Fourth Quarter 2021 |
Third Quarter 2021 |
Fourth Quarter 2020 |
||
Depreciation of fixed assets | $345 | $350 | $374 | |
Amortization of intangible assets | 76 | 75 | 79 | |
Amortization of APS investments | 71 | 82 | 88 | |
Amortization of multiclient seismic data costs capitalized | 40 | 23 | 42 | |
$532 | $530 | $583 |
12) What were the components of the net pretax credit of $18 million recorded during the fourth quarter of 2021 related to?
During the fourth quarter of 2021, Schlumberger sold 9.5 million of its shares in Liberty and received proceeds of $109 million. As a result of the transaction, Schlumberger recognized a gain of $28 million. This gain is reflected in Interest and other income in the Condensed Consolidated Statement of Income (Loss). As of December 31, 2021 Schlumberger had a 31% equity interest in Liberty.
On November 30, 2021, Schlumberger deposited sufficient funds with the trustee for its $1.0 billion of 2.40% Senior Notes due 2022 (including payment of the February 1, 2022 interest payment) to satisfy and discharge all of its obligations relating to such notes. As a result of this transaction, Schlumberger recorded a charge of $10 million. This charge is reflected in Interest in the Condensed Consolidated Statement of Income (Loss).
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, January 21, 2022. 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 February 21, 2022 by dialing +1 (866) 207-1041 within North America, or +1 (402) 970-0847 outside North America, and providing the access code 3953842. 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 February 21, 2022.
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 fourth-quarter and full-year 2021 earnings press 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 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 the COVID-19 pandemic and our preparedness for 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 our customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers and suppliers; the inability to achieve its financial and performance targets and other forecasts and expectations; the inability to achieve Schlumberger’s 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; inflation; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays, or cancellations; challenges in our supply chain; production declines; the inability to recognize efficiencies and other intended benefits from our business strategies and initiatives, such as digital or Schlumberger New Energy; as well as our 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 press 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. Forward-looking and other statements in this press release 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 press 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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