REG-Schlumberger Limited Schlumberger Announces First-Quarter 2017 Results <Origin Href="QuoteRef">SLB.N</Origin> - Part 2
21/04/2017 12:05
- Part 2: For the preceding part double click ID:nBw2lY8SDa
Fourth Quarter 2016
Pretax Tax Noncont. Net Diluted
Interest EPS
Schlumberger net loss (GAAP basis) $(213) $(19) $10 $(204) $(0.15)
Workforce reduction 234 6 - 228
Facility closure costs 165 40 - 125
Costs associated with exiting certain activities 98 23 - 75
Merger & integration 76 14 - 62
Currency devaluation loss in Egypt 63 - - 63
Contract termination costs 39 9 - 30
Schlumberger net income, excluding charges & credits $462 $73 $10 $379 $0.27
There were no charges or credits during the first quarter of 2016.
Product Groups
(Stated in millions)
Three Months Ended
Mar. 31, 2017 Dec. 31, 2016 Mar. 31, 2016
Revenue Income Revenue Income Revenue Income
Before Before Before
Taxes Taxes Taxes
Reservoir Characterization $1,618 $281 $1,676 $319 $1,719 $334
Drilling 1,985 229 2,013 234 2,493 371
Production 2,187 110 2,203 128 2,376 206
Cameron 1,229 162 1,346 188 - -
Eliminations & other (125) (25) (131) (59) (68) (10)
Pretax operating income 757 810 901
Corporate & other (239) (245) (172)
Interest income((1)) 24 23 13
Interest expense((1)) (126) (126) (120)
Charges & credits (82) (675) -
$6,894 $334 $7,107 $(213) $6,520 $622
((1)) Excludes interest included in the Product Groups results.
Certain prior period items have been reclassified to conform to the
current period presentation.
Supplemental Information
1) What is the capex guidance for the full year 2017?
Capex (excluding multiclient and SPM investments) is expected to be
$2.2 billion for 2017.
2) What was the cash flow from operations for the first quarter of 2017?
Cash flow from operations for the first quarter of 2017 was $656
million despite the consumption of working capital that is typically
experienced in the first quarter. The use of working capital was
driven by annual payments associated with employee compensation.
Working capital also reflected $140 million of severance payments
during the first quarter of 2017.
3) What was included in “Interest and other income” for the first quarter of
2017?
“Interest and other income” for the first quarter of 2017 was $46
million. This amount consisted of earnings of equity method
investments of $17 million and interest income of $29 million.
4) How did interest income and interest expense change during the first quarter
of 2017?
Interest income of $29 million was flat sequentially. Interest
expense of $139 million was also flat sequentially.
5) What is the difference between pretax operating income and Schlumberger’s
consolidated income before taxes?
The difference principally consists of corporate items (including charges and
credits) and interest income and interest expense not allocated to the
segments as well as stock-based compensation expense, amortization expense
associated with certain intangible assets (including intangible asset
amortization expense resulting from the acquisition of Cameron), certain
centrally managed initiatives, and other nonoperating items.
6) What was the effective tax rate (ETR) for the first quarter of 2017?
The ETR for the first quarter of 2017, calculated in accordance with
GAAP, was 14.8% as compared to 8.8% for the fourth quarter of 2016.
The ETR for the first quarter of 2017, excluding charges and
credits, was 15.3% as compared to 15.8% for the fourth quarter of
2016.
7) How many shares of common stock were outstanding as of March 31, 2017 and how
did this change from the end of the previous quarter?
There were 1.389 billion shares of common stock outstanding as of
March 31, 2017. The following table shows the change in the number
of shares outstanding from December 31, 2016 to March 31, 2017.
(Stated in millions)
Shares outstanding at December 31, 2016 1,391
Shares sold to optionees, less shares exchanged 1
Vesting of restricted stock 1
Shares issued under employee stock purchase plan 1
Stock repurchase program (5)
Shares outstanding at March 31, 2017 1,389
8) What was the weighted average number of shares outstanding during the first
quarter of 2017 and fourth quarter of 2016 and how does this reconcile to the
average number of shares outstanding, assuming dilution used in the
calculation of diluted earnings per share, excluding charges and credits?
The weighted average number of shares outstanding during the first quarter of
2017 was 1.393 billion and 1.392 billion during the fourth quarter of 2016.
The following is a reconciliation of the weighted average shares
outstanding to the average number of shares outstanding, assuming
dilution, used in the calculation of diluted earnings per share,
excluding charges and credits.
(Stated in millions)
First Quarter Fourth Quarter
2017 2016
Weighted average shares outstanding 1,393 1,391
Assumed exercise of stock options 4 5
Unvested restricted stock 5 5
Average shares outstanding, assuming dilution 1,402 1,401
9) What was the amount of WesternGeco multiclient sales in the first quarter of
2017?
Multiclient sales, including transfer fees, were $138 million in the
first quarter of 2017 and $143 million in the fourth quarter of 2016.
10) What was the WesternGeco backlog at the end of the first quarter of 2017?
WesternGeco backlog, which is based on signed contracts with
customers, was $613 million at the end of the first quarter of 2017.
It was $759 million at the end of the fourth quarter of 2016.
11) What were the orders and backlogs for Cameron Group’s OneSubsea and Drilling
Systems businesses?
OneSubsea and Drilling Systems orders and backlogs were as follows:
(Stated in millions)
Orders First Quarter Fourth Quarter
2017 2016
OneSubsea $546 $523
Drilling Systems $174 $132
Backlog (at the end of period)
OneSubsea $2,634 $2,526
Drilling Systems $608 $607
About Schlumberger
Schlumberger is the world's leading provider of technology for reservoir
characterization, drilling, production, and processing to the oil and gas
industry. Working in more than 85 countries and employing approximately
100,000 people who represent over 140 nationalities, Schlumberger supplies the
industry's most comprehensive range of products and services, from exploration
through production, and integrated pore-to-pipeline solutions that optimize
hydrocarbon recovery to deliver reservoir performance.
Schlumberger Limited has principal offices in Paris, Houston, London and The
Hague, and reported revenues of $27.81 billion in 2016. For more information,
visit www.slb.com
(http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.slb.com&esheet=51543335&newsitemid=20170421005280&lan=en-US&anchor=www.slb.com&index=1&md5=66b786ba9fba6dfb73b09be9c8cf5628)
.
*Mark of Schlumberger or of Schlumberger companies.
Notes
Schlumberger will hold a conference call to discuss the earnings press release
and business outlook on Friday, April 21, 2017. The call is scheduled to begin
at 8:30 a.m. US Eastern Time. To access the call, which is open to the public,
please contact the conference call operator at +1 (800) 288-8967 within North
America, or +1 (612) 333-4911 outside North America, approximately 10 minutes
prior to the call’s scheduled start time. Ask for the “Schlumberger
Earnings Conference Call.” At the conclusion of the conference call an audio
replay will be available until May 21, 2017 by dialing +1 (800) 475-6701
within North America, or +1 (320) 365-3844 outside North America, and
providing the access code 417634.
The conference call will be webcast simultaneously at www.slb.com/irwebcast
(http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.slb.com%2Firwebcast&esheet=51543335&newsitemid=20170421005280&lan=en-US&anchor=www.slb.com%2Firwebcast&index=2&md5=d5313a27c03162c2daa5cf05a9183e66)
on a listen-only basis. A replay of the webcast will also be available at the
same web site until May 30, 2017.
This first-quarter 2017 earnings release, 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 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, including our transformation program; capital
expenditures by Schlumberger and the oil and gas industry; the business
strategies of Schlumberger’s customers; the anticipated benefits of the
Cameron transaction; the success of Schlumberger’s joint ventures and
alliances; 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;
foreign currency risk; pricing pressure; weather and seasonal factors;
operational modifications, delays or cancellations; 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; the inability
to integrate the Cameron business and to realize expected synergies; the
inability to retain key employees; and other risks and uncertainties detailed
in this first-quarter 2017 earnings release and our most recent Forms 10-K,
10-Q, and 8-K filed with or furnished to the Securities and Exchange
Commission. If one or more of these or other risks or uncertainties
materialize (or the consequences of any such 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.
Schlumberger Limited Simon Farrant – Schlumberger Limited, Vice President of
Investor Relations Joy V. Domingo – Schlumberger Limited, Manager of
Investor Relations Office +1 (713) 375-3535 investor-relations@slb.com
(mailto:investor-relations@slb.com)
View source version on businesswire.com:
http://www.businesswire.com/news/home/20170421005280/en/
(http://www.businesswire.com/news/home/20170421005280/en/)
Schlumberger Ld.
Copyright Business Wire 2017Recent news on Schlumberger NV
See all newsREG - Competition and Mkts - Merger Update: Schlumberger / ChampionX
AnnouncementREG - Competition and Mkts - Merger Update: Schlumberger/ChampionX
AnnouncementREG - Competition and Mkts - Merger Update: Schlumberger/ChampionX
AnnouncementREG - Stock Exch Notice - Admission to ISM - 22/09/2023
AnnouncementREG - Stock Exch Notice - Admission to ISM - 14/08/2023
Announcement