Third Quarter 2020 Compared to Second Quarter 2020
(Stated in millions) Third Quarter 2020 Second Quarter 2020 Income (Loss) Income (Loss) Before Before Revenue Taxes Revenue Taxes Reservoir Characterization$ 1,010 $ 169$ 1,052 $ 185 Drilling 1,519 144 1,731 165 Production 1,801 227 1,615 25 Cameron 965 60 1,015 80 Eliminations & other (37 ) (25 ) (57 ) (59 ) 575 396 Corporate & other (1) (151 ) (169 ) Interest income (2) 3 7 Interest expense (3) (131 ) (137 ) Charges and credits (4) (350 ) (3,724 )$ 5,258 $ (54 )$ 5,356 $ (3,627 )
(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 Q3 2020; $- million in Q2 2020).
(3) Interest expense excludes amounts which are included in the segments' income
(
(4) Charges and credits are described in detail in Note 2 to the Consolidated
Financial Statements. Third-quarter 2020 revenue declined 2% sequentially, asNorth America revenue was 2% lower and international revenue declined 1%. InNorth America land, increased completions activity on drilled but uncompleted ("DUC") wells was offset by reduced drilling in US land.North America offshore was affected by reduced rig activity, lower multiclient seismic license sales, and hurricane disruption. International revenue was driven by higher activity inLatin America , boosted by the resumption of production in the Asset Performance Solutions ("APS") projects inEcuador and increased seasonal summer activity in theNorth Sea andRussia . These increases were offset by the effects of rig count declines and extended COVID-19 disruptions inAfrica and in theMiddle East &Asia . Looking to the fourth quarter of 2020, Schlumberger expects to continue to benefit from the effectiveness of its strategy, disciplined approach toNorth America , and broad strength of its international business, as reflected in the third-quarter results. InNorth America , the conditions are set for continued momentum, with improving DUC well completion activity in US land and a modest drilling resumption in the US andCanada . International activity is steady following the budget resets completed in the third quarter and activity will be affected by the seasonal decline in the Northern Hemisphere, partly offset by muted year-end product and multiclient license sales. Overall internationally, Schlumberger views the next two quarters as a period of transition for our industry at the trough of this cycle. Improving demand recovery supported by various government measures to stimulate economic activity and continued supply discipline from the major producers set the conditions for a long-term activity rebound. However, while the global lockdowns are evolving and vaccine development is progressing, the near-term recovery remains fragile owing to potential subsequent waves of COVID-19 that could pose a significant risk to this outlook. OnAugust 31, 2020 ,Schlumberger and Liberty Oilfield Services Inc. ("Liberty") entered into an agreement for the contribution to Liberty of OneStim®, Schlumberger's onshore hydraulic fracturing business in the United Stated andCanada , including its pressure pumping, pumpdown perforating, and Permian frac sand businesses, in exchange for a 37% equity interest in Liberty. The transaction is expected to close in the fourth quarter of 2020 and is subject to Liberty stockholder approval and other customary closing conditions. OneStim represented approximately 5% of Schlumberger's consolidated revenue for the nine months endedSeptember 30, 2020 . 24 --------------------------------------------------------------------------------
Reservoir Characterization
Reservoir Characterization revenue of$1.0 billion decreased 4% sequentially.North America and international revenues declined 14% and 2%, respectively. This was mainly due to lower WesternGeco® multiclient seismic license sales inNorth America offshore. Revenue was also lower in theMiddle East due to reducedWesternGeco activity as a result of a completed project and lower Testing Services activity due to project cancellations and delays.
Reservoir Characterization pretax operating margin of 17% contracted 90 basis
points ("bps") sequentially due to lower sales of
Drilling
Drilling revenue of$1.5 billion decreased 12% sequentially.North America and international revenues declined 16% and 11%, respectively. The revenue decline inNorth America was primarily due to lower activity in US land as rig count dropped 29%, along with rig count reductions and activity disruptions in the USGulf of Mexico due to a more active hurricane season. In addition, extended COVID-19 disruptions caused drilling activities to be suspended or deferred in several international GeoMarkets.
Drilling pretax operating margin of 10% was essentially flat sequentially,
despite the significant revenue decline. Margin was resilient both in
Production
Production revenue of$1.8 billion increased 12% sequentially.North America and international revenues increased 13% and 11%, respectively. This was driven primarily by the gradual recovery in DUC well completions activity in US land and the resumption of APS production inEcuador following a major landslide that led to the rupture of the main pipeline last quarter. OneStim revenue grew more than 50% sequentially as US-market stage counts increased by more than 30%. Production pretax operating margin of 13% expanded by 11 percentage points sequentially. The margin expansion was due to the resumption of production in APS projects inEcuador and improved profitability across each of Completions, Artificial Lift Solutions, and Well Services, supported by cost reduction measures. OneStim margin improved due to better operating leverage as revenue increased by more than 50%. Cameron
Cameron revenue of
Cameron pretax operating margin of 6% declined by 162 bps sequentially. The margin contraction was primarily due to the unfavorable mix where contribution from the long-cycle businesses of OneSubsea and Drilling Systems was lower due to reduced activity. 25
-------------------------------------------------------------------------------- Third Quarter 2020 Compared to Third Quarter 2019 (Stated in millions) Third Quarter 2020 Third Quarter 2019 Income (Loss) Income (Loss) Before Before Revenue Taxes Revenue Taxes Reservoir Characterization$ 1,010 $ 169$ 1,651 $ 360 Drilling 1,519 144 2,469 306 Production 1,801 227 3,153 288 Cameron 965 60 1,363 173 Eliminations & other (37 ) (25 ) (95 ) (31 ) 575 1,096 Corporate & other (1) (151 ) (231 ) Interest income (2) 3 7 Interest expense (3) (131 ) (151 ) Charges and credits (4) (350 ) (12,692 )$ 5,258 $ (54 )$ 8,541 $ (11,971 )
(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;
(3) Interest expense excludes amounts which are included in the segments' income
(
(4) Charges and credits are described in detail in Note 2 to the Consolidated
Financial Statements. Third-quarter 2020 revenue of$5.3 billion was 38% lower compared to the same period last year due to the significant fall inNorth America activity while international activity dropped due to downward revisions to customer budgets accentuated by COVID-19 disruptions.North America revenue declined 59% reflecting the continued capital discipline ofNorth America operators, who reduced drilling and frac activity. International revenue decreased 27% due to COVID-19-related disruptions, the drop in offshore activity, and reduced customer discretionary spending.
Reservoir Characterization
Third-quarter 2020 revenue of$1.0 billion decreased 39% year-on-year mainly due to lower Wireline andWesternGeco revenues as customers reduced activity due to COVID-19 and cut discretionary spending and exploration in several international GeoMarkets.
Year-on-year, pretax operating margin decreased 512 bps to 17% largely due to
the revenue declines in Wireline and
Drilling
Third-quarter 2020 revenue of$1.5 billion decreased 39% year-on-year primarily due to the activity decline in US land as rig count dropped significantly, 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 292 bps to 10% primarily due to
the significant reduction in activity in
Production
Third-quarter 2020 revenue of
26 -------------------------------------------------------------------------------- Year-on-year, pretax operating margin increased 347 bps to 13% despite the significant drop in revenue. Margin improvement was supported by cost reduction measures and reduced depreciation and amortization following the asset impairment charges relating to OneStim and APS that were recorded in the second quarter of 2020. Cameron Third-quarter 2020 revenue of$1.0 billion decreased 29% year-on-year primarily as a result of lower Valves & Process Systems and Surface Systems revenues inNorth America . Year-on-year, pretax operating margin decreased 644 bps to 6% due to reduced Surface Systems and Valves & Process Systems profitability inNorth America and lower OneSubsea margins internationally. Nine Months 2020 Compared to Nine Months 2019 (Stated in millions) Nine Months 2020 Nine Months 2019 Income (Loss) Income (Loss) Before Before Revenue Taxes Revenue Taxes Reservoir Characterization$ 3,372 $ 538$ 4,669 $ 959 Drilling 5,540 594 7,275 914 Production 6,119 464 9,120 740 Cameron 3,235 262 3,949 486 Eliminations & other (197 ) (111 ) (324 ) (127 ) 1,747 2,972 Corporate & other (1) (548 ) (742 ) Interest income (2) 25 25 Interest expense (3) (397 ) (433 ) Charges and credits (4) (12,596 ) (12,692 )$ 18,069 $ (11,769 ) $ 24,689 $ (10,870 )
(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
(
(3) Interest expense excludes amounts which are included in the segments' income
(
(4) Charges and credits are described in detail in Note 2 to the Consolidated
Financial Statements.
Nine-month 2020 revenue of$18.1 billion was 27% lower compared to the same period last year due to the significant fall inNorth America activity, as well as the international activity drop due to downward revisions to customer budgets accentuated by COVID-19 disruptions.North America revenue declined 45%, reflecting the continued capital discipline ofNorth America operators, who reduced drilling and frac activity. International revenue decreased 17%. The decline was most prominent inLatin America ,Europe , andAfrica due to COVID-19-related restrictions, the drop in offshore activity, and the effect of the APS production interruption inEcuador during the second quarter of 2020.
Reservoir Characterization
Nine-month 2020 revenue of$3.4 billion decreased 28% year-on-year primarily due to lower Wireline andWesternGeco revenue as customers reduced activity due to COVID-19 and cut discretionary spending and exploration in several international GeoMarkets.
Year-on-year, pretax operating margin decreased 459 bps to 16% due to reduced
profitability largely in Wireline and
27 --------------------------------------------------------------------------------
Drilling
Nine-month 2020 revenue of$5.5 billion decreased 24% year-on-year due to the activity decline in US land as rig count decreased significantly, while COVID-19 disruptions caused drilling activities to be cancelled or suspended in several international GeoMarkets. Revenue was also lower due to the divestiture of the Drilling Tools businesses at the end of the fourth quarter of 2019.
Year-on-year, pretax operating margin decreased 184 bps to 11% primarily due to the decrease in revenue and COVID-19-related disruptions.
Production
Nine-month 2020 revenue of
Year-on-year, pretax operating margin was essentially flat at 8% despite the significant drop in revenue. The margin was resilient as it was supported by cost reduction measures as well as reduced depreciation and amortization following the asset impairment charges relating to OneStim and APS that were recorded in the second quarter of 2020.
Cameron
Nine-month 2020 revenue of
Year-on-year, pretax operating margin decreased 421 bps to 8% due to the revenue decline.
Interest and Other Income
Interest & other income consisted of the following:
(Stated in millions) Third Quarter Nine Months 2020 2019 2020 2019 Equity in net earnings of affiliated companies$ 19 $ 13 $ 66 $ 30 Interest income 3 8 28 31$ 22 $ 21 $ 94 $ 61
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 third quarter and nine months endedSeptember 30, 2020 and 2019 were as follows: Third Quarter Nine Months 2020 2019 2020 2019 Research & engineering 2.6 % 2.1 % 2.5 % 2.1 % General & administrative 1.6 % 1.4 % 1.6 % 1.4 % The effective tax rate for the third quarter of 2020 was (35)%, as compared to 5% for the same period of 2019. The charges described in Note 2 to the Consolidated Financial Statements reduced the effective tax rate by 55 and 11 percentage points for the third quarter of 2020 and 2019, respectively, as a significant portion of these charges were not tax-effective. Changes in the geographic mix of pretax earnings accounted for the remaining increase in the effective tax rate for the third quarter of 2020 as compared to the same period of 2019. 28
-------------------------------------------------------------------------------- The effective tax rate for first nine months of 2020 was 8% as compared to 4% for the same period of 2019. The charges and credits described in Note 2 to the Consolidated Financial Statements reduced the effective tax rate by 11 and 12 percentage points for the first nine months of 2020 and 2019, respectively, as a significant portion of these charges were not tax-effective. Changes in the geographic mix of pretax earnings accounted for the remaining increase in the effective tax rate for the first nine months of 2020 as compared to the same period of 2019. 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 60 (4 ) 56 Third quarter: Facility exit charges 254 (39 ) 215 Workforce reductions 63 - 63 Other 33 (1 ) 32$ 12,596 $ (1,057 ) $ 11,539 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, commencing with the third quarter of 2020, depreciation and amortization expense was reduced by approximately$80 million and lease expense was reduced by$25 million , on a quarterly basis. Approximately$70 million of this quarterly reduction is reflected in the Production Segment, with the remaining$35 million reflected amongst the Reservoir Characterization, Drilling and Cameron segments. The third quarter 2020 results did not include any benefit from reduced expenses associated with the third quarter restructuring charges. However, going forward depreciation and lease expense will be reduced by$15 million , on a quarterly basis. This quarterly reduction will be reflected amongst all of the segments. 29
--------------------------------------------------------------------------------
2019
Schlumberger recorded the following charges in connection with the preparation of its third quarter 2019 financial statements, which are fully described in Note 2 to the Consolidated Financial Statements, all of which are classified in Impairment & other in the Consolidated Statement of Loss: (Stated in millions) Pretax Tax Net Goodwill$ 8,828 $ (43 ) $ 8,785 Intangible assets 1,085 (248 ) 837 North America pressure pumping 1,575 (344 ) 1,231 Other North America-related 310 (53 ) 257 Argentina 127 - 127 Equity-method investments 231 (12 ) 219 Asset Performance Solutions investments 294 - 294 Other 242 (13 ) 229$ 12,692 $ (713 ) $ 11,979 As these impairment charges were effective as ofAugust 31, 2019 , the third quarter 2019 results include a one-month reduction in depreciation and amortization expense of$27 million . Approximately$21 million of this amount relates to the Production segment. The remaining$6 million is reflected in the "Corporate & other" line item.
There were no charges or credits recorded during the first six months of 2019.
As market conditions evolve and Schlumberger continues to develop its strategy to deal with such conditions, it may result in further restructuring and/or impairment charges in future periods.
Liquidity and Capital Resources
The effects of the COVID-19 pandemic have resulted in a significant and swift reduction in international andU.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, inApril 2020 Schlumberger announced a 75% reduction to its quarterly cash 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. Details of the components of liquidity as well as changes in liquidity follow: (Stated in millions) Sept. 30, Sept. 30, Dec. 31, Components of Liquidity: 2020 2019 2019 Cash$ 1,219 $ 1,183 $ 1,137 Short-term investments 2,618 1,109 1,030 Short-term borrowings and current portion of long-term debt (1,292 ) (340 ) (524 ) Long-term debt (16,471 ) (16,333 ) (14,770 ) Net debt (1)$ (13,926 ) $ (14,381 ) $ (13,127 ) 30
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Nine Months Ended Sept. 30, Changes in Liquidity: 2020 2019 Net loss$ (10,868 ) $ (10,450 ) Impairment and other charges 12,596
12,692
Depreciation and amortization (2) 1,983
2,741
Earnings of equity method investments, less dividends received
(18 ) 2 Deferred taxes (1,147 ) (833 ) Stock-based compensation expense 318 329 Increase in working capital (3) (822 ) (1,340 ) Other 24 38 Cash flow from operations 2,066 3,179 Capital expenditures (858 ) (1,230 ) APS investments (252 ) (526 ) Multiclient seismic data costs capitalized (86 ) (181 ) Free cash flow (4) 870 1,242 Dividends paid (1,560 ) (2,077 ) Proceeds from employee stock plans 146 196 Stock repurchase program (26 )
(278 ) Business acquisitions and investments, net of cash acquired plus debt assumed
(33 ) (21 ) Net proceeds from divestitures 325 - Impact of changes in foreign exchange rates on net debt (372 ) (87 ) Other (149 ) (82 ) Increase in net debt (799 ) (1,107 ) Net debt, beginning of period (13,127 ) (13,274 ) Net debt, end of period$ (13,926 ) $ (14,381 )
(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
during the nine months ended
(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 nine months of 2020 and 2019 included:
• On
for Schlumberger common stock. Schlumberger had repurchased
Schlumberger common stock under this program as of
Company did not repurchase any Schlumberger common stock during the third
quarter of 2020.
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 Nine months ended September 30, 2020 $ 26 0.8 $ 33.81 Nine months ended September 30, 2019 $ 278 7.0 $ 39.92 31
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• Capital expenditures were
compared to
respectively. Capital expenditures for full-year 2020 are expected to be
approximately
• During the third quarter of 2020, Schlumberger issued
Senior Notes due 2025 and$350 million of 2.65% Senior Notes due 2030.
• During the third quarter of 2019, Schlumberger issued €500 million of 0.00%
Notes due 2024, €500 million of 0.25% Notes due 2027 and €500 million of 0.50%
Notes due 2031.
• During the second quarter of 2020, Schlumberger issued €1.0 billion of 1.375%
Guaranteed Notes due 2026,
€1.0 billion of 2.00% Guaranteed Notes due 2032.
• During the second quarter of 2020, Schlumberger repurchased all
of its 4.20% Senior Notes due 2021 and
due 2021. Schlumberger paid a premium of approximately
connection with these repurchases. This premium was classified in Impairments
& other in the Consolidated Statement of Loss. See Note 2 - Charges 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
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
Senior Notes due 2024 and$850 million of 4.30% Senior Notes due 2029. Schlumberger had a provision of$0.7 billion relating to the severance recorded on its Consolidated Balance Sheet as ofSeptember 30, 2020 . Approximately half of this balance is expected to be paid during the fourth quarter of 2020 with the remainder expected to be paid in 2021.
Schlumberger generates revenue in more than 120 countries. As of
As ofSeptember 30, 2020 , Schlumberger had$3.8 billion of cash and short-term investments on hand. Schlumberger had separate committed debt facility agreements aggregating$8.1 billion that support commercial paper programs, of which$7.0 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
FORWARD-LOOKING STATEMENTS This third-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 divisions (and for specified business lines or geographic areas within each division); 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 and other widespread health emergencies; 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 strategy for itsNorth America operations; the expected benefits of, or timing to complete, the proposed OneStim transaction; Schlumberger's 32
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restructuring efforts and charges recorded as a result of such efforts; our effective tax rate; Schlumberger's APS projects, joint ventures, and alliances; future global economic and geopolitical conditions; 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 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 achieve its financial and performance targets and other forecasts and expectations; 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 its 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 theSEC . 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 third-quarter 2020 Form 10-Q are made as ofOctober 21, 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.
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