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8-K - FORM 8-K - SCHLUMBERGER LIMITED/NVd713225d8k.htm
EX-99.1 - EX-99.1 - SCHLUMBERGER LIMITED/NVd713225dex991.htm

Exhibit 99.2

 

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First-Quarter 2014 Results—Supplemental Information

 

1) What were multiclient sales in the first quarter of 2014?

Multiclient sales, including transfer fees, were $162 million in the first quarter of 2014.

 

2) What was the WesternGeco backlog at the end of the first quarter of 2014?

WesternGeco backlog, which is based on signed contracts with customers, was $1.14 billion at the end of the first quarter of 2014.

 

3) What were the Schlumberger pretax and after-tax returns-on-sales from continuing operations for the first quarter of 2014, excluding charges and credits?

The Schlumberger pretax return on sales from continuing operations, excluding charges and credits, was 18.5% for the first quarter of 2014 and 19.5% for the fourth quarter of 2013.

The Schlumberger after-tax return on sales from continuing operations, excluding charges and credits, was 14.2% for the first quarter of 2014 versus 15.0% for the fourth quarter of 2013.

 

4) What was the Schlumberger Net Debt at the end of the first quarter of 2014?

Net debt was $5.05 billion at March 31, 2014—a $610 million increase as compared to the end of the previous quarter.

Liquidity during the quarter was used by working capital consumption of $870 million, which typically is higher at the beginning of the year. Liquidity was used also for capital expenditures of $864 million and stock buy-back of $899 million.

Net Debt represents gross debt less cash, short-term investments and fixed income investments, held to maturity.

 

5) What was included in “Interest and other income, net” for the first quarter of 2014?

“Interest and other income, net” for the first quarter of 2014 consisted of the following:

 

     ($ millions)  

Equity in net earnings of affiliated companies

   $ 64   

Interest Income

     12   
  

 

 

 
   $ 76   


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6) How did interest income and interest expense change during the first quarter of 2014?

Interest income of $12 million increased $1 million sequentially. Interest expense of $103 million increased $5 million sequentially.

 

7) Why was there a difference between the consolidated Schlumberger pretax income and the total pretax income of Oilfield Services?

The difference consisted of such items as corporate expenses and interest income and interest expense not allocated to the segments, as well as interest on postretirement medical benefits, stock-based compensation expense and the amortization expense associated with intangible assets recorded in connection with the 2010 Smith acquisition.

 

8) What was the effective tax rate (ETR), excluding charges and credits, for the first quarter of 2014?

The ETR for the first quarter of 2014 was 22.6% and 22.3% in the prior quarter. There were no charges and credits in the first quarter of 2014.

 

9) What is the capex guidance for the full year 2014?

Schlumberger capex is expected to be $3.8 billion for 2014. Capex in 2013 was $3.9 billion.


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Non-GAAP Financial Measures

In addition to financial results determined in accordance with US generally accepted accounting principles (GAAP), this document also includes non-GAAP financial measures (as defined under SEC Regulation G). The following is a reconciliation of these non-GAAP measures to the comparable GAAP measures:

 

            (Stated in millions, except per share amounts)  
     Fourth Quarter 2013  
     Pretax      Tax      Noncont.
Interest
     Net      Diluted
EPS
 

Schlumberger income from continuing operations, as reported

   $ 2,170       $ 487       $ 19       $ 1,664       $ 1.26   

Provision for accounts receivable

     152         30         —           122         0.09   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Schlumberger income from continuing operations, excluding charges & credits

   $ 2,322       $ 517       $ 19       $ 1,786       $ 1.35   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Fourth Quarter 2013  
     GAAP    Excluding
Charges
& Credits
 

Pretax return on sales

   18.2%      19.5%   

After tax return on sales

   14.0%      15.0%   

Effective tax rate

   22.4%      22.3%   

There were no charges or credits recorded during the first quarter of 2014.

 

     (Stated in millions)  

Components of Net Debt

    
 
Mar. 31,
2014
  
  
    

 

Dec. 31,

2013

 

  

Cash and short-term investments

   $ 7,078        $ 8,370    

Fixed income investments, held to maturity

     358          363    

Short-term borrowings and current portion of long-term debt

     (1,369)         (2,783)   

Long-term debt

     (11,120)         (10,393)   
  

 

 

    

 

 

 
   $ (5,053)       $ (4,443)   
  

 

 

    

 

 

 


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This document, the first-quarter 2014 earnings release and 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 as our forecasts or expectations regarding business outlook; growth for Schlumberger as a whole and for each of its segments (and for specified products or geographic areas within each segment); oil and natural gas demand and production growth; oil and natural gas prices; improvements in operating procedures and technology; capital expenditures by Schlumberger and the oil and gas industry; the business strategies of Schlumberger’s customers; future global economic conditions; and future results of operations. These statements are subject to risks and uncertainties, including, but not limited to, global economic conditions; changes in exploration and production spending by Schlumberger’s customers and changes in the level of oil and natural gas exploration and development; general economic, political and business conditions in key regions of the world, including in Russia and the Ukraine; pricing erosion; weather and seasonal factors; operational delays; production declines; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services and climate-related initiatives; the inability of technology to meet new challenges in exploration; and other risks and uncertainties detailed in our first-quarter 2014 earnings release, our most recent Form 10-K and other filings that we make with the Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should our underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. 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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