Schlumberger Ltd
Summary
- Schlumberger is one of the largest oilfield services companies in the world.
- SLB is presence in more than 100 countries and has approximately 99,000 employees.
- Recently SLB Acquired Gyrodata Incorporated.
Schlumberger (NYSE: SLB, OSCL: 0SCL) is one of the largest oilfield services companies in the world, with operations in over 100 countries and approximately 99,000 employees.
Recent Developments
SLB Completes Acquisition of Gyrodata Incorporated1
03 February 2023; SLB announced it has completed the acquisition of Gyrodata Incorporated, a global company specializing in gyroscopic wellbore positioning and survey technology. The transaction will incorporate Gyrodata’s wellbore placement and surveying technologies within SLB’s Well Construction business, bringing customers innovative drilling solutions.
This combination will improve wellbore quality and reduce drilling risk to unlock even the most remote and complex reservoirs. Integrating three-axis solid state gyro measurements with the latest SLB technological innovations will help ensure tighter trajectory control, reduce data acquisition time and improve the decision-making process—resulting in greater overall drilling efficiency.
Financial Highlights
First-Quarter 2023 Results
Apr. 21, 2023-- SLB announced results for the first-quarter 2023.2
- Revenue of $7.7 billion increased 30% year on year
- GAAP EPS of $0.65 increased 81% year on year
- EPS, excluding charges and credits, of $0.63 increased 85% year on year
- Net income attributable to SLB of $934 million increased 83% year on year
- Adjusted EBITDA of $1.8 billion increased 43% year on year
- Cash flow from operations was $330 million
- Board approved quarterly cash dividend of $0.25 per share
During the quarter, SLB repurchased approximately 4.4 million shares of its common stock at an average price of $52.65 per share for a total purchase price of $230 million.
On February 3, 2023, SLB completed the acquisition of Gyrodata Incorporated, a global company specializing in gyroscopic wellbore positioning and survey technology. The transaction incorporates Gyrodata’s wellbore placement and surveying technologies within SLB’s Well Construction business, further enhancing its ability to deliver innovative drilling solutions to customers.
On April 20, 2023, SLB’s Board of Directors approved a quarterly cash dividend of $0.25 per share of outstanding common stock, payable on July 13, 2023, to stockholders of record on June 7, 2023.
Full-Year 2022 Results
20 January 2023 SLB announced results for the fourth-quarter and full-year 2022.
Full-year 2022 revenue of $28.1 billion increased 23% year-on-year driven by activity increases internationally, in North America and across all Divisions. Full-year pretax operating margin of 18% increased 316 bps due to improved operating leverage from higher activity, a favorable activity mix, and an improving pricing environment. Full year net income increased 71% to $3.14 billion from $1.83 billion last year.
International revenue increased 20% to $21.9 billion led by Latin America and Europe/CIS/Africa with revenue growth of 27% and 25%, respectively, while revenue in the Middle East & Asia increased 12%. In North America, revenue increased 34% to $6.0 billion primarily driven by robust onshore drilling activity; higher sales of production systems; a strong contribution from the APS project in Canada; and increased exploration data licensing in the US Gulf of Mexico.
Digital & Integration
Digital & Integration full-year revenue of $3.7 billion increased 13% year on year, primarily driven by increased APS project activity in Ecuador and Canada and higher exploration data licensing sales in the US Gulf of Mexico.
Digital & Integration pretax operating margin of 36% expanded 177 bps year on year largely due to improved profitability in exploration data licensing.
Reservoir Performance
Reservoir Performance full-year revenue of $5.6 billion increased 21% year on year as a result of strong international activity led by the Middle East & Asia and Latin America on higher activity and improved pricing.
Reservoir Performance pretax operating margin of 16% increased 177 bps year on year primarily due to improved profitability in intervention activity.
Well Construction
Well Construction full-year revenue of $11.4 billion grew 31% year on year with strong growth across all geographical areas led by North America and Latin America, which grew 56% and 53%, respectively. This growth was driven by higher land and offshore activity along with improved pricing.
Well Construction pretax operating margin of 19% expanded 560 bps year on year driven by the higher activity and improved pricing.
Production Systems
Production Systems full-year revenue of $7.9 billion increased 17% year on year driven by new projects and increased sales activity primarily in Europe, Africa, and North America. Double digit growth was posted in midstream, artificial lift, surface production systems and subsea production systems.
Production Systems pretax operating margin of 10% was essentially flat primarily as a result of higher logistics costs and a less favorable revenue mix.
During 2022, SLB sold 47.8 million of its shares of Liberty and recognized a gain of $325 million. During 2021, SLB sold 9.5 million of its shares of Liberty and recognized a gain of $28 million.
Interest expense of $490 million in 2022 decreased $49 million compared to 2021 primarily as a result of the repayment of $1.7 billion and $2.1 billion of debt during 2022 and 2021, respectively.
Company Overview
Schlumberger is one of the largest oilfield services companies in the world, with operations in over 100 countries and approximately 99,000 employees. In October 2022, the company announced its brand a new name SLB.3
Business Segments
Digital & Integration – Combines SLB’s industry-leading digital solutions and data products with its integrated offering of Asset Performance Solutions (“APS”). This Division help customers by reducing cycle times and risk, accelerating returns, increasing productivity, and lowering costs and carbon emissions.
Reservoir Performance – Consists of reservoir-centric technologies and services that are critical to optimizing reservoir productivity and performance. Reservoir Performance develops and deploys innovative technologies and services to evaluate, intervene, and stimulate reservoirs that help customers understand subsurface assets and maximize their value.
On December 31, 2020, SLB contributed its onshore hydraulic fracturing business in the United States and Canada (“OneStim®”), including its pressure pumping, pumpdown perforating, and Permian frac sand businesses, to Liberty Energy Inc. (“Liberty”), in exchange for a 37% equity interest in Liberty. OneStim’s historical results were reported as part of the Reservoir Performance Division through the closing of the transaction. As of December 31, 2022, SLB had a 5% equity interest in Liberty.
Well Construction – Combines the full portfolio of products and services to optimize well placement and performance, maximize drilling efficiency, and improve wellbore assurance. Well Construction provides operators and drilling rig manufacturers with services and products related to designing and constructing a well.
Production Systems – Develops technologies and provides expertise that enhance production and recovery from subsurface reservoirs to the surface, into pipelines, and to refineries. Production Systems provides a comprehensive portfolio of equipment and services including subsurface production systems, subsea and surface equipment and services, and midstream production systems.
Company History
Conrad and his brother Marcel began working together in 1919 to change the face of subsurface exploration.4
| Year | Milestone |
| 1926 | Conrad and Marcel Schlumberger founded the Societe de Prospection Electrique (SPE) in France to provide electrical prospecting services for the oil industry. |
| 1935 | SPE established its first research laboratory in Houston, Texas. |
| 1956 | SPE introduced the first commercial electrical resistivity well log, which provided a detailed record of the geology and fluids encountered in a well. |
| 1960 | SPE merged with the GSI Group to form Schlumberger Limited, which became a publicly traded company. |
| 1970s | Schlumberger introduced several new logging tools, including the first nuclear magnetic resonance logging tool and the first acoustic imaging tool. |
| 1980s | Schlumberger expanded its services to include seismic acquisition and processing, directional drilling, and well testing. |
| 1990s | Schlumberger acquired several companies, including GeoQuest Systems, which provided software and information management solutions, and WesternGeco, which offered geophysical services. |
| 2000s | Schlumberger continued to expand its services and technologies, including the launch of the industry's first integrated drilling project management service, IDS. |
| 2010s | Schlumberger introduced several new technologies, including the DrillSTEM drilling system, which improved drilling efficiency, and the GAIA digital subsurface platform, which provides real-time data analysis. |
| 2020s | Schlumberger continues to develop new technologies and services to support the industry's transition to a low-carbon future, including carbon capture and storage and renewable energy solutions. |
| 2022 | SLB Acquired Gyrodata Incorporated |
References
- ^ https://investorcenter.slb.com/news-releases/news-release-details/slb-completes-acquisition-gyrodata-incorporated
- ^ https://investorcenter.slb.com/news-releases/news-release-details/slb-announces-first-quarter-2023-results
- ^ https://fintel.io/doc/sec-schlumberger-limited-nv-87347-10k-2023-january-25-19382-1901
- ^ https://www.slb.com/about/who-we-are/our-history
