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.