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MarketScreener Homepage  >  Equities  >  Nyse  >  Schlumberger Limited    SLB   AN8068571086

SCHLUMBERGER LIMITED

(SLB)
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SCHLUMBERGER LIMITE : NV Management's Discussion and Analysis of Financial Condition and Results of Operations. (form 10-Q)

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07/29/2020 | 11:23am EDT

Second Quarter 2020 Compared to First Quarter 2020



                                                                                        (Stated in millions)

                                               Second Quarter 2020                 First Quarter 2020
                                                          Income (Loss)                       Income (Loss)
                                                             Before                              Before
                                          Revenue             Taxes           Revenue             Taxes
Reservoir Characterization               $    1,052      $           185     $    1,311      $           184
Drilling                                      1,731                  165          2,289                  285
Production                                    1,615                   25          2,703                  212
Cameron                                       1,015                   80          1,254                  121
Eliminations & other                            (57 )                (59 )         (102 )                (26 )
                                                                     396                                 776
Corporate & other (1)                                               (169 )                              (228 )
Interest income (2)                                                    7                                  15
Interest expense (3)                                                (137 )                              (129 )
Charges and credits (4)                                           (3,724 )                            (8,523 )
                                         $    5,356$        (3,627 )$    7,455$        (8,089 )

(1) Comprised principally of certain corporate expenses not allocated to the

segments, stock-based compensation costs, amortization expense associated

with certain intangible assets, certain centrally managed initiatives and

other nonoperating items.

(2) Interest income excludes amounts which are included in the segments' income

($- million in Q2 2020; $- million in Q1 2020).

(3) Interest expense excludes amounts which are included in the segments' income

($7 million in Q2 2020; $7 million in Q1 2020).

(4) Charges and credits are described in detail in Note 2 to the Consolidated

    Financial Statements.




The second quarter of 2020 was probably the most challenging quarter in past
decades. Second-quarter revenue of $5.4 billion declined 28% sequentially,
caused by the significant decrease in North America activity, and international
activity drop due to downward revisions to customer budgets accentuated by
COVID-19 disruptions. The entire oil and gas industry was confronted with
historic oil demand and supply imbalances caused by demand destruction from the
global COVID-19 containment effort.



North America revenue declined 48% sequentially with land revenue falling 60% as
customers dramatically cut back spending. International revenue declined 19%
sequentially with Latin America and Africa experiencing the largest revenue
declines due to COVID-19-related restrictions and the drop in deepwater
activity. In addition, there was a production interruption in the Asset
Performance Solutions ("APS") projects in Ecuador caused by a major landslide
that led to the rupture of the main pipeline.



Schlumberger has worked to protect its liquidity and cash positions and sustained resilient international margins while navigating the trough of this downcycle.




Despite the severe drop in international revenue and the effect of the APS
production interruption in Ecuador, international margin was essentially flat
compared to the previous quarter, due to Schlumberger's swift and decisive
actions to reduce operating costs, restructure, and rationalize its asset base.
Schlumberger is working to permanently remove $1.5 billion of structural costs
annually by reorganizing into a leaner and more responsive company that is
better aligned with its customers' workflows.



Looking at the macro view in the near-term, during the beginning of the third
quarter of 2020 oil demand slowly started to normalize and is expected to
continue to improve as government measures support consumption. However,
subsequent waves of potential COVID-19 resurgence pose a negative risk to this
outlook.



The conditions are set in the third quarter for a modest frac completion
activity increase in North America, though from a very low base.
Internationally, markets may continue to be disrupted by the pandemic and will
continue to adjust to budget levels set during the second quarter, but this is
expected to be mostly offset if there is a seasonal return of activity in the
Northern Hemisphere and a rebound of Latin America from its second-quarter
weakness. However, any further material COVID-19 disruption or significant
setback in oil demand arising from a slower economic recovery could present
downside risks to this outlook. Absent these risks, Schlumberger anticipates
flat sequential revenue in the third quarter. Schlumberger expects its third
quarter pretax segment operating income and margin to expand as a result of its
restructuring efforts, improved activity mix, and sustained benefits from
technology adoption, including digital.

                                       21

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Reservoir Characterization


Reservoir Characterization revenue of $1.1 billion decreased 20% sequentially.
This was mainly due to lower Wireline activity in North America land and the
Eastern Middle East and Sub-Sahara Africa GeoMarkets. Testing Services revenue
was also lower mainly in the Sub-Sahara Africa GeoMarket as a result of projects
that were completed in the prior quarter, as well as delayed and cancelled
activities due to COVID-19.



Reservoir Characterization pretax operating margin of 18% rebounded 357 bps
sequentially despite the significant revenue decline. This margin expansion was
driven by prompt cost reduction measures through headcount rationalization and
furloughs.

Drilling

Drilling revenue of $1.7 billion decreased 24% sequentially. This was primarily
due to the activity decline in US land as rig count dropped more than 50%, while
COVID-19 disruptions caused drilling activities to be cancelled or suspended in
several international GeoMarkets.



Drilling pretax operating margin of 10% contracted by 289 bps sequentially.
Drilling & Measurements and M-I SWACO accounted for most of the margin decline
and experienced the largest drop in activity due to their sizeable footprint in
North America land.

Production

Production revenue of $1.6 billion decreased 40% sequentially. This was driven
by the sharp drop in OneStim® pressure-pumping activity in North America land,
lower APS revenue due primarily to the significant production interruption in
Ecuador and COVID-19 disruptions.



Production pretax operating margin of 2% contracted by 630 bps sequentially. The
margin decline was due to reduced profitability in North America land from the
dramatic fall in activity, which mostly impacted the OneStim margin, as well as
the drop in APS revenue in Ecuador.

Cameron

Cameron revenue of $1.0 billion decreased 19% sequentially. The decline was driven by lower Surface Systems and Valves & Process Systems revenues in North America and lower Drilling Systems sales.

Cameron pretax operating margin of 8% declined by 180 bps sequentially primarily due to the significant revenue decline.

                                       22

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              Second Quarter 2020 Compared to Second Quarter 2019



                                                                                          (Stated in millions)

                                               Second Quarter 2020                  Second Quarter 2019
                                                          Income (Loss)                         Income (Loss)
                                                             Before                                Before
                                          Revenue             Taxes            Revenue              Taxes
Reservoir Characterization               $    1,052      $           185     $     1,558       $           317
Drilling                                      1,731                  165           2,420                   301
Production                                    1,615                   25           3,077                   235
Cameron                                       1,015                   80           1,328                   165
Eliminations & other                            (57 )                (59 )          (114 )                 (50 )
                                                                     396                                   968
Corporate & other (1)                                               (169 )                                (238 )
Interest income (2)                                                    7                                     9
Interest expense (3)                                                (137 )                                (146 )
Charges and credits (4)                                           (3,724 )                                   -
                                         $    5,356$        (3,627 )$     8,269       $           593



(1) Comprised principally of certain corporate expenses not allocated to the

segments, stock-based compensation costs, amortization expense associated

with certain intangible assets, certain centrally managed initiatives and

other nonoperating items.

(2) Interest income excludes amounts which are included in the segments' income

($- million in 2020; $2 million in 2019).

(3) Interest expense excludes amounts which are included in the segments' income

($7 million in 2020; $10 million in 2019).

(4) Charges and credits are described in detail in Note 2 to the Consolidated

Financial Statements.



Second-quarter 2020 revenue of $5.4 billion was 35% lower compared to the same
period last year due to the significant fall in North America activity, well as
the international activity drop due to downward revisions to customer budgets
accentuated by COVID-19 disruptions. With market uncertainty weighing on demand
outlook, North America revenue declined 58% reflecting the continued capital
discipline of North America operators, who reduced drilling and frac activity.
International revenue decreased 24%. This decline was most prominent in Latin
America and Africa due to COVID-19-related restrictions and the drop in
deepwater activity, as well as the effect of the APS production interruption in
Ecuador.

Reservoir Characterization

Second-quarter 2020 revenue of $1.1 billion decreased 32% year-on-year.  This
was mainly due to lower Wireline and WesternGeco revenue as customers pulled
back activity due to COVID-19 and cut discretionary spending and exploration in
several international GeoMarkets.

Year-on-year, pretax operating margin decreased 273 bps to 18% due to reduced profitability, largely in Wireline and WesternGeco.

Drilling


Second-quarter 2020 revenue of $1.7 billion decreased 28% year-on-year. This was
primarily due to the activity decline in US land as rig count significantly
decreased, while COVID-19 disruptions caused drilling activities to be cancelled
or suspended in several international GeoMarkets. Revenue was also lower due to
the divestiture of the Drilling Tools businesses at the end of the fourth
quarter of 2019.



Year-on-year, pretax operating margin decreased 288 bps to 10% due to the significant reduction in activity in North America.

Production

Second-quarter 2020 revenue of $1.6 billion decreased 48% year-on-year. This revenue decrease was driven by the sharp drop in OneStim pressure pumping activity in North America land, lower APS revenue due primarily to the significant production interruption in Ecuador and COVID-19 disruptions.

                                       23

--------------------------------------------------------------------------------

Year-on-year, pretax operating margin decreased 612 bps to 2% due primarily to reduced profitability in OneStim in North America land.

Cameron

Second-quarter 2020 revenue of $1.0 billion decreased 24% year-on-year. The decline was driven primarily by lower Valves & Process Systems and Surface Systems revenue in North America.

Year-on-year, pretax operating margin decreased 453 bps to 8% due to the significant revenue decline.

                  Six Months 2020 Compared to Six Months 2019



                                                                    (Stated in millions)

                                 Six Months 2020                  Six Months 2019
                                         Income (Loss)                    Income (Loss)
                                            Before                           Before
                           Revenue           Taxes          Revenue           Taxes
Reservoir Characterization $  2,363     $           369     $  3,017     $           598
Drilling                      4,020                 450        4,806                 608
Production                    4,318                 237        5,967                 453
Cameron                       2,270                 201        2,586                 313
Eliminations & other           (160 )               (85 )       (227 )               (96 )
                                                  1,172                            1,876
Corporate & other (1)                              (397 )                           (511 )
Interest income (2)                                  22                               18
Interest expense (3)                               (266 )                           (282 )
Charges and credits (4)                         (12,247 )                              -
                           $ 12,811$       (11,716 )$ 16,149     $         1,101



(1) Comprised principally of certain corporate expenses not allocated to the

segments, stock-based compensation costs, amortization expense associated

with certain intangible assets, certain centrally managed initiatives and

other nonoperating items.

(2) Interest income excludes amounts which are included in the segments' income

($1 million in 2020; $5 million in 2019).

(3) Interest expense excludes amounts which are included in the segments' income

($15 million in 2020; $20 million in 2019).

(4) Charges and credits are described in detail in Note 2 to the Consolidated Financial Statements.


Six-month 2020 revenue of $12.8 billion was 21% lower compared to the same
period last year due to the significant fall in North America activity, as well
as the international activity drop due to downward revisions to customer budgets
accentuated by COVID-19 disruptions. With market uncertainty weighing on demand
outlook, North America revenue declined 37% reflecting the continued capital
discipline of North America operators, who reduced drilling and frac activity.
International revenue decreased 12%. The decline was most prominent in Latin
America and Africa due to COVID-19 related restrictions and the drop in
deepwater activity, as well as the effect of the APS production interruption in
Ecuador.

Reservoir Characterization

Six-month 2020 revenue of $2.4 billion decreased 22% year-on-year. This was mainly due to lower Wireline and WesternGeco revenue as customers pulled back activity due to COVID-19 and cut discretionary spending and exploration in several international GeoMarkets. Testing Services and Software Integrated Solutions revenue declined slightly.

Year-on-year, pretax operating margin decreased 421 bps to 16% due to reduced profitability largely in Wireline and WesternGeco.

Drilling

Six-month 2020 revenue of $4.0 billion decreased 16% year-on-year. This was primarily due to the activity decline in US land as rig count significantly decreased while COVID-19 disruptions caused drilling activities to be cancelled or suspended in several


                                       24

--------------------------------------------------------------------------------

international GeoMarkets. Revenue was also lower due to the divestiture of the Drilling Tools businesses at the end of the fourth quarter of 2019.

Year-on-year, pretax operating margin decreased 145 bps to 11%. Margins were lower due to the decrease in revenue and COVID-19-related disruptions.

Production

Six-month 2020 revenue of $4.3 billion decreased 28% year-on-year. This revenue decrease was driven primarily by the sharp drop in OneStim pressure pumping activity in North America land, lower APS revenue due primarily to the significant production interruption in Ecuador and COVID-19 disruptions.

Year-on-year, pretax operating margin decreased 211 bps to 5% due primarily to reduced profitability in OneStim in North America land.

Cameron

Six-month 2020 revenue of $2.3 billion decreased 12% year-on-year. The decline was driven primarily by lower Valves & Process Systems and Surface Systems revenue in North America.

Year-on-year, pretax operating margin decreased 322 bps to 9% due to the significant revenue decline.

Interest and Other Income

Interest & other income consisted of the following:



                                                                   (Stated in millions)

                                                 Second Quarter           Six Months
                                                2020         2019       2020      2019
Equity in net earnings of affiliated companies $    26$  14$   49$  16
Interest income                                      7          11         23        23
                                               $    33$  25$   72$  39

The increases in earnings from equity method investments primarily relates to higher income associated with Schlumberger's equity investments in rig- and seismic-related businesses.




Other

Research & engineering and General & administrative expenses, as a percentage of
Revenue, for the second quarter and six months ended June 30, 2020 and 2019 were
as follows:



                           Second Quarter          Six Months
                           2020        2019      2020      2019
Research & engineering        2.6 %      2.2 %     2.5 %     2.2 %
General & administrative      1.5 %      1.4 %     1.6 %     1.4 %




The effective tax rate for the second quarter of 2020 was 6%, as compared to 17%
for the same period of 2019. The charges described in Note 2 to the Consolidated
Financial Statements reduced the effective tax rate for the second quarter of
2020 by 17 percentage points as a significant portion of these charges were not
tax-effective. Changes in the geographic mix of pretax earnings increased the
effective tax rate for the second quarter of 2020 by six percentage points as
compared to the same period of 2019.



The effective tax rate for first six months of 2020 was 8% as compared to 16%
for the same period of 2019. The charges described in Note 2 to the Consolidated
Financial Statements reduced the effective tax rate for the first six months of
2020 by 10 percentage points as a significant portion of these charges were not
tax-effective.

                                       25

--------------------------------------------------------------------------------

Charges and Credits

Schlumberger recorded the following charges and credits during 2020, which are fully described in Note 2 to the Consolidated Financial Statements:



                                                               (Stated in millions)

                                                  Pretax        Tax          Net
First quarter:
Goodwill                                         $  3,070     $      -     $  3,070
Intangible asset impairments                        3,321         (815 )      2,506
Asset Performance Solutions investments             1,264            4      

1,268

North America pressure pumping impairment             587         (133 )        454
Workforce reductions                                  202           (7 )        195
Other                                                  79           (9 )         70
Valuation allowance                                     -          164          164
Second quarter:
Workforce reductions                                1,021          (71 )        950
Asset Performance Solutions investments               730          (15 )        715
Fixed asset impairments                               666          (52 )        614
Inventory write-downs                                 603          (49 )        554
Right-of-use asset impairments                        311          (67 )    

244

Costs associated with exiting certain activities      205           25      

230

Multiclient seismic data impairment                   156           (2 )    

154

Repurchase of bonds                                    40           (2 )    

38

Postretirement benefits curtailment gain              (69 )         16          (53 )
Other                                                  61           (4 )         57
                                                 $ 12,247$ (1,017 )$ 11,230




The first quarter 2020 results did not include any benefit from reduced
depreciation and amortization expense as a result of the first quarter
impairment charges.  However, commencing with the second quarter of 2020,
depreciation and amortization expense was reduced by approximately $95 million
on a quarterly basis as a result of the first quarter impairment
charges. Approximately $45 million of this quarterly reduction is reflected in
the Production segment, with the remaining $50 million reflected in the
"Corporate & other" line item.



The second quarter 2020 results did not include any benefit from reduced
expenses associated with the second quarter restructuring and impairment
charges. However, going forward depreciation and amortization expense will be
reduced by approximately $80 million and lease expense will be reduced by $25
million, on a quarterly basis. Approximately $70 million of this quarterly
reduction will be reflected in the Production Segment, with the remaining $35
million reflected amongst the Reservoir Characterization, Drilling and Cameron
segments.

There were no charges or credits recorded during the first six months of 2019.

Liquidity and Capital Resources


The effects of the COVID-19 pandemic have resulted in a significant and swift
reduction in international and U.S. economic activity. These effects have
adversely affected the demand for oil and natural gas, as well as for
Schlumberger's products and services, and caused significant volatility and
disruption of the financial markets. This period of extreme economic disruption,
low oil prices and reduced demand for Schlumberger's products and services has
had, and is likely to continue to have, a material adverse impact on
Schlumberger's business, results of operations, financial condition and, at
times, access to sources of liquidity.

In view of the uncertainty of the depth and extent of the contraction in oil
demand due to the COVID-19 pandemic combined with the weaker commodity price
environment, Schlumberger has turned its strategic focus to cash conservation
and protecting its balance sheet. As a result, in April 2020 Schlumberger
announced a 75% reduction to its quarterly dividend. The revised dividend
supports Schlumberger's value proposition through a balanced approach of
shareholder distributions and organic investment, while providing the
flexibility to weather the uncertain environment. This decision reflects the
Company's focus on its capital stewardship program as well as its commitment to
maintain both a strong liquidity position and a strong investment grade credit
rating that provides privileged access to the financial markets.

                                       26

--------------------------------------------------------------------------------

Details of the components of liquidity as well as changes in liquidity follow:



                                                                   (Stated in millions)

                                                Jun. 30,       Jun. 30,       Dec. 31,
Components of Liquidity:                          2020           2019           2019
Cash                                           $    1,462$    1,466$    1,137
Short-term investments                              2,127            882          1,030
Short-term borrowings and current portion of
long-term debt                                       (603 )          (98 )         (524 )
Long-term debt                                    (16,763 )      (16,978 )      (14,770 )
Net debt (1)                                   $  (13,777 )$  (14,728 )$  (13,127 )






Changes in Liquidity:                                      Six Months Ended Jun. 30,
                                                           2020                2019
Net income (loss)                                      $     (10,796 )     $         923
Impairment and other charges                                  12,247                   -
Depreciation and amortization (2)                              1,396        

1,841

Earnings of equity method investments, less dividends received

                                                         (26 )                 -
Deferred taxes                                                (1,050 )              (101 )
Stock-based compensation expense                                 213        

194

Increase in working capital (3)                                 (423 )            (1,460 )
Other                                                             26                  37
Cash flow from operations                                      1,587               1,434
Capital expenditures                                            (658 )              (817 )
APS investments                                                 (224 )              (332 )
Multiclient seismic data costs capitalized                       (61 )              (109 )
Free cash flow (4)                                               644                 176
Dividends paid                                                (1,386 )            (1,385 )
Proceeds from employee stock plans                                69        

106

Stock repurchase program                                         (26 )              (199 )
Net proceeds from asset divestitures                             298                   -
Business acquisitions and investments, net of cash
acquired plus debt assumed                                       (20 )               (17 )
Other                                                           (229 )              (135 )
Increase in net debt                                            (650 )            (1,454 )
Net debt, beginning of period                                (13,127 )           (13,274 )
Net debt, end of period                                $     (13,777 )$     (14,728 )

(1) "Net debt" represents gross debt less cash and short-term

investments. Management believes that Net debt provides useful information

regarding the level of Schlumberger's indebtedness by reflecting cash and

    investments that could be used to repay debt. Net debt is a non-GAAP
    financial measure that should be considered in addition to, not as a
    substitute for or superior to, total debt.

(2) Includes depreciation of property, plant and equipment and amortization of

intangible assets, multiclient seismic data costs, and APS investments.

(3) Includes severance payments of approximately $426 million and $71 million

during the six months ended June 30, 2020 and 2019, respectively.

(4) "Free cash flow" represents cash flow from operations less capital

expenditures, APS investments and multiclient seismic data costs capitalized.

Management believes that free cash flow is an important liquidity measure for

the company and that it is useful to investors and management as a measure of

our ability to generate cash. Once business needs and obligations are met,

this cash can be used to reinvest in the company for future growth or to

return to shareholders through dividend payments or share repurchases. Free

cash flow does not represent the residual cash flow available for

discretionary expenditures. Free cash flow is a non-GAAP financial measure

that should be considered in addition to, not as substitute for or superior

to, cash flow from operations.

Key liquidity events during the first six months of 2020 and 2019 included:

• On January 21, 2016, the Board approved a $10 billion share repurchase

            program for Schlumberger common stock. Schlumberger had

repurchased

            $1.0 billion of Schlumberger common stock under this program as of
            June 30, 2020. The Company did not repurchase any Schlumberger common
            stock during the second quarter of 2020.


                                       27

--------------------------------------------------------------------------------

The following table summarizes the activity under the share repurchase program:



                                   (Stated in millions, except per share amounts)

                                Total cost      Total number       Average price
                                of shares         of shares          paid per
                                purchased         purchased            share
Six months ended June 30, 2020 $         26               0.8     $         

33.81

Six months ended June 30, 2019 $        199               4.8     $         41.40



• Capital expenditures were $0.7 billion during the first six months of 2020

compared to $0.8 billion during the first six months of 2019,

respectively. Capital expenditures for full-year 2020 are expected to be

approximately $1.1 billion, representing a 35% decrease as compared to 2019.

• During the second quarter of 2020, Schlumberger issued €1.0 billion of

      1.375% Guaranteed Notes due 2026, $900 million of 2.650% Senior Notes due
      2030 and €1.0 billion of 2.00% Guaranteed Notes due 2032.



• During the second quarter of 2020, Schlumberger repurchased all $600 million

of its 4.20% Senior Notes due 2021 and $935 million of its 3.30% Senior

Notes due 2021. Schlumberger paid a premium of approximately $40 million in

      connection with these repurchases.  This premium was classified in
      Impairments & other in the Consolidated Statement of Income (Loss).  See
      Note 2 - Charge and Credits.



• During the second quarter of 2020, Schlumberger established a €5.0 billion

Guaranteed Euro Medium Term Note program that provides for the issuance of

various types of debt instruments such as fixed or floating rate notes in

euro, US dollar or other currencies. Schlumberger has not issued any debt

      under this program.



• During the first quarter of 2020, Schlumberger issued €400 million of 0.25%

      Notes due 2027 and €400 million of 0.50% Notes due 2031.



• During the first quarter of 2020, Schlumberger completed the sale of its 49%

interest in the Bandurria Sur Block in Argentina. The net cash proceeds

      from this transaction, combined with the proceeds received from the
      divestiture of a smaller APS project, amounted to $298 million.



• During the first quarter of 2019, Schlumberger issued $750 million of 3.75%

Senior Notes due 2024 and $850 million of 4.30% Senior Notes due 2029.



Schlumberger recorded a $1.0 billion charge relating to severance during the
second quarter of 2020. The vast majority of this charge is expected to be paid
during the second half of 2020.

Schlumberger generates revenue in more than 120 countries. As of June 30, 2020, six of those countries individually accounted for greater than 5% of Schlumberger's net receivables balance, of which only the United States accounted for greater than 10% of such receivables.


As of June 30, 2020, Schlumberger had $3.6 billion of cash and short-term
investments on hand. Schlumberger had separate committed debt facility
agreements aggregating $8.0 billion that support commercial paper programs, of
which $6.2 billion was available and unused. Schlumberger believes these amounts
are sufficient to meet future business requirements for at least the next 12
months.

Borrowings under the commercial paper programs at June 30, 2020 were $1.8 billion.

FORWARD-LOOKING STATEMENTS


This second-quarter 2020 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 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; pricing; Schlumberger's response to, and
preparedness for, the COVID-19 pandemic; access to raw materials; improvements
in operating procedures and technology; capital expenditures by Schlumberger and
the oil and gas industry; the business strategies of Schlumberger and
Schlumberger's customers; Schlumberger's digital strategy; Schlumberger's
restructuring efforts and charges recorded as a result of such efforts; our

                                       28

--------------------------------------------------------------------------------

effective tax rate; Schlumberger's APS projects, joint ventures, and alliances;
future global economic and geopolitical conditions; and future results of
operations. These statements are subject to risks and uncertainties, including,
but not limited to, changing 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; the results of operations and
financial condition of Schlumberger's customers and suppliers, particularly
during extended periods of low prices for crude oil and natural gas;
Schlumberger's inability to sufficiently monetize assets; the extent of future
charges; general economic, geopolitical, and business conditions in key regions
of the world; foreign currency risk; pricing pressure; weather and seasonal
factors; unfavorable effects of health pandemics; availability and cost of raw
materials; operational modifications, delays or cancellations; challenges in
Schlumberger's supply chain; production declines; Schlumberger's inability to
recognize intended benefits from its business strategies and initiatives, such
as digital or new energy, as well as our restructuring and structural cost
reduction plans; 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 competitiveness of alternative energy sources or product
substitutes; and other risks and uncertainties detailed in this Form 10-Q and
our most recent Form 10-K and Forms 8-K filed with or furnished to the SEC. 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. Statements in this second-quarter
2020 Form 10-Q are made as of July 29, 2020, and Schlumberger disclaims any
intention or obligation to update publicly or revise such statements, whether as
a result of new information, future events or otherwise.

© Edgar Online, source Glimpses

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