SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended: March 31, 2003
Commission file No.: 1-4601
SCHLUMBERGER N.V.
(SCHLUMBERGER LIMITED)
(Exact name of registrant as specified in its charter)
| NETHERLANDS ANTILLES (State or other jurisdiction of incorporation or organization) |
52-0684746 (I.R.S. Employer Identification No.) | |
| 153 EAST 53 STREET, 57th Floor NEW YORK, NEW YORK, U.S.A. |
10022 | |
| 42 RUE SAINT-DOMINIQUE PARIS, FRANCE |
75007 | |
| PARKSTRAAT 83T THE HAGUE, THE NETHERLANDS (Addresses of principal executive offices) |
2514 JG (Zip Codes) |
Registrant’s telephone number: (212) 350-9400
Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. YES x NO ¨
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class |
Outstanding at March 31, 2003 | |
| COMMON STOCK, $0.01 PAR VALUE |
582,275,917 |
PART I. FINANCIAL INFORMATION
Item 1: Financial Statements
SCHLUMBERGER LIMITED
(Schlumberger N.V., Incorporated in the Netherlands Antilles)
and Subsidiary Companies
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(Stated in thousands except per share amounts)
| Three Months Ended March 31, |
|||||||
| 2003 |
2002 |
||||||
| REVENUE: |
|||||||
| Operating |
$ |
3,343,344 |
$ |
3,256,198 |
| ||
| Interest & other income |
|
29,658 |
|
33,837 |
| ||
|
|
3,373,002 |
|
3,290,035 |
| |||
| EXPENSES: |
|||||||
| Cost of goods sold & services |
|
2,650,073 |
|
2,561,594 |
| ||
| Research & engineering |
|
162,362 |
|
159,658 |
| ||
| Marketing |
|
94,562 |
|
95,585 |
| ||
| General |
|
159,231 |
|
160,631 |
| ||
| Interest |
|
92,863 |
|
82,253 |
| ||
|
|
3,159,091 |
|
3,059,721 |
| |||
| Income from Continuing Operations before taxes and minority interest |
|
213,911 |
|
230,314 |
| ||
| Taxes on income |
|
68,998 |
|
63,972 |
| ||
| Income from Continuing Operations before minority interest |
|
144,913 |
|
166,342 |
| ||
| Minority interest |
|
4,249 |
|
(6,494 |
) | ||
| Income from Continuing Operations |
|
149,162 |
|
159,848 |
| ||
| Income from Discontinued Operations |
|
— |
|
12,624 |
| ||
| Net Income |
$ |
149,162 |
$ |
172,472 |
| ||
| Basic earnings per share: |
|||||||
| Income from Continuing operations |
$ |
0.26 |
$ |
0.28 |
| ||
| Income from Discontinued operations |
|
— |
|
0.02 |
| ||
| Net Income |
$ |
0.26 |
$ |
0.30 |
| ||
| Diluted earnings per share: |
|||||||
| Income from Continuing operations |
$ |
0.26 |
$ |
0.28 |
| ||
| Income from Discontinued operations |
|
— |
|
0.02 |
| ||
| Net Income |
$ |
0.26 |
$ |
0.30 |
| ||
| Average shares outstanding: |
|||||||
| Basic |
|
582,209 |
|
576,306 |
| ||
| Assuming dilution |
|
583,981 |
|
581,104 |
| ||
See Notes to Consolidated Financial Statements
-2-
SCHLUMBERGER LIMITED
(Schlumberger N.V., Incorporated in the Netherlands Antilles)
and Subsidiary Companies
CONSOLIDATED BALANCE SHEET
| (Stated in thousands) |
||||||||
| Mar. 31, 2003 |
Dec. 31, 2002 |
|||||||
| (Unaudited) |
||||||||
| ASSETS |
||||||||
| CURRENT ASSETS: |
||||||||
| Cash |
$ |
145,506 |
|
$ |
168,110 |
| ||
| Short-term Investments |
|
1,324,767 |
|
|
1,567,906 |
| ||
| Receivables less allowance for doubtful accounts (2003—$169,002; 2002—$172,871) |
|
3,657,754 |
|
|
3,489,406 |
| ||
| Inventories |
|
1,042,503 |
|
|
1,043,057 |
| ||
| Deferred taxes |
|
428,552 |
|
|
435,887 |
| ||
| Other current assets |
|
506,058 |
|
|
481,074 |
| ||
|
|
7,105,140 |
|
|
7,185,440 |
| |||
| FIXED INCOME INVESTMENTS, HELD TO MATURITY |
|
380,000 |
|
|
407,500 |
| ||
| INVESTMENTS IN AFFILIATED COMPANIES |
|
709,731 |
|
|
687,524 |
| ||
| FIXED ASSETS |
|
4,523,859 |
|
|
4,663,756 |
| ||
| MULTICLIENT SEISMIC DATA |
|
1,020,473 |
|
|
1,018,483 |
| ||
| GOODWILL |
|
4,304,346 |
|
|
4,229,993 |
| ||
| INTANGIBLE ASSETS |
|
535,252 |
|
|
558,664 |
| ||
| DEFERRED TAXES |
|
140,335 |
|
|
147,013 |
| ||
| OTHER ASSETS |
|
524,744 |
|
|
536,822 |
| ||
| $ |
19,243,880 |
|
$ |
19,435,195 |
| |||
| LIABILITIES & STOCKHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Accounts payable and accrued liabilities |
$ |
4,374,340 |
|
$ |
4,580,762 |
| ||
| Estimated liability for taxes on income |
|
619,811 |
|
|
625,058 |
| ||
| Dividend payable |
|
109,825 |
|
|
109,565 |
| ||
| Long-term debt due within one year |
|
400,902 |
|
|
452,577 |
| ||
| Bank & short-term loans |
|
621,812 |
|
|
682,956 |
| ||
|
|
6,126,690 |
|
|
6,450,918 |
| |||
| LONG-TERM DEBT |
|
6,145,557 |
|
|
6,028,549 |
| ||
| POSTRETIREMENT BENEFITS |
|
565,349 |
|
|
544,456 |
| ||
| OTHER LIABILITIES |
|
243,186 |
|
|
251,607 |
| ||
|
|
13,080,782 |
|
|
13,275,530 |
| |||
| MINORITY INTEREST |
|
554,886 |
|
|
553,527 |
| ||
| STOCKHOLDERS’ EQUITY: |
||||||||
| Common stock |
|
2,172,065 |
|
|
2,170,965 |
| ||
| Income retained for use in the business |
|
5,600,711 |
|
|
5,560,712 |
| ||
| Treasury stock at cost |
|
(1,576,448 |
) |
|
(1,578,358 |
) | ||
| Accumulated other comprehensive income |
|
(588,116 |
) |
|
(547,181 |
) | ||
|
|
5,608,212 |
|
|
5,606,138 |
| |||
| $ |
19,243,880 |
|
$ |
19,435,195 |
| |||
See Notes to Consolidated Financial Statements
-3-
SCHLUMBERGER LIMITED
(Schlumberger N.V., Incorporated in the Netherlands Antilles)
and Subsidiary Companies
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
| (Stated in thousands) |
||||||||
| Three Months Ended March 31, |
||||||||
| 2003 |
2002 |
|||||||
| Cash flows from operating activities: |
||||||||
| Income from continuing operations |
$ |
149,162 |
|
$ |
159,848 |
| ||
| Adjustments to reconcile income from continuing operations to cash provided by operating activities: |
||||||||
| Depreciation and amortization (1) |
|
386,512 |
|
|
361,250 |
| ||
| Non-cash charges |
|
— |
|
|
28,923 |
| ||
| Earnings of companies carried at equity, less dividends received |
|
(15,454 |
) |
|
(15,424 |
) | ||
| Deferred taxes |
|
44,293 |
|
|
16,585 |
| ||
| Provision for losses on accounts receivable |
|
17,537 |
|
|
11,095 |
| ||
| Change in operating assets and liabilities: |
||||||||
| (Increase) decrease in receivables |
|
(163,336 |
) |
|
68,207 |
| ||
| Decrease (increase) in inventories |
|
4,709 |
|
|
(54,337 |
) | ||
| Increase in other current assets |
|
(23,976 |
) |
|
(52,508 |
) | ||
| Decrease in accounts payable and accrued liabilities |
|
(321,051 |
) |
|
(224,888 |
) | ||
| Decrease in estimated liability for taxes on income |
|
(3,809 |
) |
|
(37,587 |
) | ||
| Postretirement benefits |
|
20,893 |
|
|
12,155 |
| ||
| Other - net |
|
(4,108 |
) |
|
9,019 |
| ||
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
91,372 |
|
|
282,338 |
| ||