SCHLUMBERGER LIMITEDNV

Previous wording

Interest income excludes amounts that are included in the segments’ income ($9 million in the second quarter of 2024; $4 million in the first quarter of 2024).

Current wording

Interest income excludes amounts that are included in the segments’ income ($16 million in the third quarter of 2024; $9 million in the second quarter of 2024).

Previous wording

Interest expense excludes amounts that are included in the segments’ income ($3 million in both the first and second quarter of 2024).

Current wording

Interest expense excludes amounts that are included in the segments’ income ($4 million in the third quarter of 2024; $3 million in the second quarter of 2024).

Previous wording

Digital & Integration revenue of $1.1 billion increased 10% sequentially due to higher digital revenue while Asset Performance Solutions (“APS”) revenue was flat. Growth in digital revenue was driven by the increased adoption of SLB’s digital solutions and higher exploration data license sales.

Current wording

Digital & Integration revenue of $1.1 billion increased 4% sequentially due to higher digital revenue while Asset Performance Solutions (“APS”) revenue was flat. Digital revenue grew 7% sequentially driven by the increased adoption internationally of our cloud, AI, and edge technology platforms.

Previous wording

Digital & Integration pretax operating margin of 31% expanded 435 basis points (“bps”) sequentially, primarily due to improved profitability in digital following strong exploration data license sales and higher uptake of digital solutions.

Current wording

Digital & Integration pretax operating margin of 36% expanded 456 basis points (“bps”) sequentially, mostly due to improved profitability in digital, following higher uptake of digital products and solutions and cost efficiencies.

Previous wording

Well Construction pretax operating margin of 22% expanded 125 bps sequentially due to the international activity increases in measurements and fluids.

Current wording

Well Construction pretax operating margin of 22% declined 19 bps sequentially due to reduced activity both in North America and internationally.

Previous wording

Production Systems pretax operating margin of 16% expanded 146 bps sequentially due to improved profitability in subsea production systems and artificial lift.

Current wording

Production Systems pretax operating margin of 17% expanded 110 bps sequentially with improved profitability in surface production systems, completions, and artificial lift.

Previous wording

Interest income excludes amounts that are included in the segments’ income ($13 million in 2024; $- million in 2023).

Current wording

Interest income excludes amounts that are included in the segments’ income ($31 million in 2024; $2 million in 2023).

Previous wording

Interest expense excludes amounts that are included in the segments’ income ($7 million in both 2024 and 2023).

Current wording

Interest expense excludes amounts that are included in the segments’ income ($13 million in 2024; $10 million in 2023).

Previous wording

Six-month 2024 revenue of $17.8 billion increased 13% year on year. Approximately 50% of the year-on-year revenue increase came from the acquisition of the Aker subsea business in the fourth quarter of 2023.

Current wording

Nine-month 2024 revenue of $27.0 billion increased 12% year on year. Approximately 50% of the year on year revenue increase came from the acquisition of the Aker Solutions subsea business ("Aker") in the fourth quarter of 2023.

Previous wording

International revenue grew by 18% year on year. Excluding the contribution of the acquired Aker subsea business, international revenue increased by 11% driven by higher activity in the Middle East & Asia. North America revenue decreased by 6% primarily due to lower drilling in US land.

Current wording

International revenue grew by 16% year on year. Excluding the contribution of the acquired Aker subsea business, international revenue increased by 8% primarily driven by higher activity in the Middle East & Asia. North America revenue decreased by 3% due to lower drilling in US land.

Previous wording

Digital & Integration revenue of $2.0 billion increased 9% year on year due to digital growing in line with SLB’s ambition of full-year growth in the high-teens.

Current wording

Digital & Integration revenue of $3.1 billion increased 10% year on year due to digital revenue growing in line with SLB’s ambition of full-year growth in the high teens.

Previous wording

Digital & Integration pretax operating margin of 29% contracted 298 bps year on year due to the effects of higher APS amortization expense and lower gas prices.

Current wording

Digital & Integration pretax operating margin of 31% declined 69 bps year on year primarily due to the effects of higher APS amortization expense and lower gas prices.

Previous wording

Reservoir Performance revenue of $3.5 billion increased 13% year on year due to increased stimulation and intervention activity, with approximately 75% of the revenue growth coming from the Middle East & Asia.

Current wording

Reservoir Performance revenue of $5.4 billion increased 11% year on year due to increased stimulation and intervention activity, with approximately 75% of the revenue growth coming from the Middle East & Asia.

Previous wording

Reservoir Performance pretax operating margin of 20% expanded 276 bps year on year on improved profitability in the international markets driven by higher activity and improved pricing from increased technology intensity.

Current wording

Reservoir Performance pretax operating margin of 20% expanded 167 bps year on year due to improved profitability in the international markets driven by higher activity and improved pricing from increased technology intensity.

Previous wording

Well Construction revenue of $6.8 billion increased 2% year on year. This revenue increase was driven by 8% growth internationally, primarily in the Middle East & Asia, partially offset by a 16% reduction in North America largely due to lower drilling in US land.

Current wording

Well Construction revenue of $10.1 billion was essentially flat year on year. International revenue grew 5%, primarily in the Middle East & Asia, largely offset by a 15% reduction in North America largely due to lower drilling activity in US land.

Previous wording

Production Systems revenue of $5.8 billion increased 29% year on year mainly due to the acquisition of the Aker subsea business. Excluding the effects of the Aker subsea acquisition, revenue grew 8% year on year driven by a 13% increase in international sales. Organic year-on-year growth was led by strong international sales of artificial lift, surface production systems, and completions.

Current wording

Production Systems revenue of $8.9 billion increased 30% year on year mainly due to the acquisition of the Aker subsea business. Excluding the effects of the Aker subsea acquisition, revenue grew by 8% year on year driven by strong international sales across the portfolio.

Previous wording

Production Systems pretax operating margin of 15% expanded 425 bps year on year driven by a favorable activity mix, execution efficiency, and conversion of improved-price backlog.

Current wording

Production Systems pretax operating margin of 16% expanded 391 bps year on year driven by a favorable activity mix, execution efficiency, and conversion of improved-price backlog.

Previous wording

Research & engineeringand General & administrative expenses, as a percentage of Revenue, for the second quarter and first quarter of 2024 and the first six months of 2024 and 2023 were as follows:

Current wording

Research & engineeringand General & administrative expenses, as a percentage of Revenue, for the third quarter and second quarter of 2024 and the first nine months of 2024 and 2023 were as follows:

Previous wording

SLB recorded charges and credits during the first six months of 2024 and 2023. These charges and credits, which are summarized below, are more fully described in Note 2 to the Consolidated Financial Statements. SLB did not record any charges or credits during the second quarter of 2023.

Current wording

SLB recorded charges and credits during the first nine months of 2024 and the first quarter of 2023. These charges and credits, which are summarized below, are more fully described in Note 2 to the Consolidated Financial Statements. SLB did not record any charges or credits during the second and third quarters of 2023.

Previous wording

Key liquidity events during the first six months of 2024 and 2023 included:

Current wording

Key liquidity events during the first nine months of 2024 and 2023 included:

Previous wording

Capital investments (consisting of capital expenditures, APS investments and exploration data capitalized) were $1.2 billion during the first six months of 2024 compared to $1.2 billion during the first six months of 2023. Capital investments for the full year 2024 are expected to be approximately $2.6 billion, which is the same level as the full year 2023.

Current wording

Capital investments (consisting of capital expenditures, APS investments and exploration data capitalized) were $1.9 billion during both the first nine months of 2024 and the first nine months of 2023. Capital investments for the full year 2024 are expected to be approximately $2.6 billion, which is the same level as the full year 2023.

Previous wording

In January 2024, SLB announced a 10% increase to its quarterly cash dividend from $0.25 per share of outstanding common stock to $0.275 per share, beginning with the dividend payable in April 2024. Dividends paid during the first six months of 2024 and 2023 were $751 million and $605 million, respectively.

Current wording

In January 2024, SLB announced a 10% increase to its quarterly cash dividend from $0.25 per share of outstanding common stock to $0.275 per share, beginning with the dividend payable in April 2024. Dividends paid during the first nine months of 2024 and 2023 were $1.1 billion and $961 million, respectively.

Previous wording

As of June 30, 2024, SLB had cumulatively repurchased approximately $2.5 billion of SLB common stock under its $10 billion share repurchase program.

Current wording

As of September 30, 2024, SLB had cumulatively repurchased approximately $3.0 billion of SLB common stock under its $10 billion share repurchase program.

Previous wording

During the second quarter of 2024, SLB and Aker Carbon Capture ASA (“ACC”) announced the closing of their previously announced joint venture. The new company combines technology portfolios, expertise, and operation platforms to support accelerated carbon capture adoption for industrial decarbonization at scale. At closing, SLB paid NOK 4.1 billion ($0.4 billion) in cash to ACC for the purchase of 80% of the shares in Aker Carbon Capture Holdings AS (“ACCH”), which held the business of ACC. ACC is also entitled to performance-based payments of up to NOK 1.4 billion if certain targets are met over the period from 2025 to 2027.

Current wording

During the second quarter of 2024, SLB and Aker Carbon Capture ASA (“ACC”) announced the closing of their previously announced joint venture. The new company, SLB Capturi™, combines technology portfolios, expertise, and operation platforms to support accelerated carbon capture adoption for industrial decarbonization at scale. At closing, SLB paid NOK 4.1 billion ($0.4 billion) in cash to ACC for the purchase of 80% of the shares in Aker Carbon Capture Holdings AS (“ACCH”), which held the business of ACC. ACC is also entitled to performance-based payments of up to NOK 1.4 billion if certain targets are met over the period from 2025 to 2027.

Previous wording

As of June 30, 2024, SLB had $4.0 billion of cash and short-term investments on hand and committed debt facility agreements with commercial banks aggregating $5.0 billion, $4.6 billion of which was available and unused. SLB believes these amounts are sufficient to meet future business requirements for at least the next 12 months and beyond.

Current wording

As of September 30, 2024, SLB had $4.5 billion of cash and short-term investments on hand and committed debt facility agreements with commercial banks aggregating $5.0 billion, all of which was available. SLB believes these amounts are sufficient to meet future business requirements for at least the next 12 months and beyond.

Previous wording

SLB has a global footprint in more than 100 countries. As of June 30, 2024, only three of those countries individually accounted for greater than 5% of SLB’s net receivable balance. One of these countries, Mexico, represented greater than 10% of such receivables. As of June 30, 2024, Mexico represented 15% of SLB's net accounts receivable balance. In July 2024, SLB issued a credit default swap ("CDS") to a third-party financial institution for a notional amount of $550 million relating to a borrowing provided by the financial institution to SLB's primary customer in Mexico. This borrowing was utilized by the customer to pay approximately $645 million of SLB's outstanding receivables in July 2024. SLB’s receivables from its primary customer in Mexico are not in dispute and SLB has not historically had any material write-offs due to uncollectible accounts receivable relating to this customer.

Current wording

SLB has a global footprint in more than 100 countries. As of September 30, 2024, only three of those countries individually accounted for greater than 5% of SLB’s net receivable balance. Only one of these countries, the United States, represented greater than 10% of such receivables. As of September 30, 2024, Mexico represented 9% of SLB's net accounts receivable balance. (See Note 8 to the Consolidated Financial Statements). SLB’s receivables from its primary customer in Mexico are not in dispute and SLB has not historically had any material write-offs due to uncollectible accounts receivable relating to this customer.

Previous wording

This second-quarter 2024 Form 10-Q, 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,” “precursor,” “forecast,” “outlook,” “expectations,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “scheduled,” “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 SLB’s financial and performance targets and other forecasts or expectations regarding, or dependent on, its business outlook; growth for SLB 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 SLB and the oil and gas industry; the business strategies of SLB, including digital and “fit for basin,” as well as the strategies of SLB’s customers; -SLB’s capital allocation plans, including dividend plans and share repurchase programs; SLB’s APS projects, joint ventures, and other alliances; the impact of the ongoing conflict in Ukraine on global energy supply; access to raw materials; future global economic and geopolitical conditions; future liquidity, including free cash flow; 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 and geopolitical conditions; changes in exploration and production spending by SLB’s customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of SLB’s customers and suppliers; SLB’s inability to achieve its financial and performance targets and other forecasts and expectations; SLB’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; the ongoing conflict in Ukraine; foreign currency risk; inflation; changes in monetary policy by governments; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays or cancellations; challenges in SLB’s supply chain; production declines; the extent of future charges; SLB’s inability to recognize efficiencies and other intended benefits from its business strategies and initiatives, such as digital or new energy, as well as its cost reduction strategies; changes in government regulations and …

Excerpt shortened here; the source contains the full paragraph.

Current wording

This third-quarter 2024 Form 10-Q, 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,” “precursor,” “forecast,” “outlook,” “expectations,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “scheduled,” “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 SLB’s financial and performance targets and other forecasts or expectations regarding, or dependent on, its business outlook; growth for SLB 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 SLB and the oil and gas industry; the business strategies of SLB, including digital and “fit for basin,” as well as the strategies of SLB’s customers; -SLB’s capital allocation plans, including dividend plans and share repurchase programs; -SLB’s APS projects, joint ventures, and other alliances; the impact of the ongoing conflict in Ukraine on global energy supply; access to raw materials; future global economic and geopolitical conditions; future liquidity, including free cash flow; 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 and geopolitical conditions; changes in exploration and production spending by SLB’s customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of SLB’s customers and suppliers; SLB’s inability to achieve its financial and performance targets and other forecasts and expectations; SLB’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; the ongoing conflict in Ukraine; foreign currency risk; inflation; changes in monetary policy by governments; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays or cancellations; challenges in SLB’s supply chain; production declines; the extent of future charges; SLB’s inability to recognize efficiencies and other intended benefits from its business strategies and initiatives, such as digital or new energy, as well as its cost reduction strategies; changes in government regulations and …

Excerpt shortened here; the source contains the full paragraph.