Monday, January 31, 2022

ABB Acquires Controlling Interest in InCharge Energy, Strengthening its EV Charging Solutions in the U.S.

ZURICH -Thursday 27 January 2022 [ AETOS Wire ]

As a leading provider of EV charging infrastructure, service and software solutions to commercial fleets, InCharge Energy will expand ABB’s smart and connected EV charging offering
Transaction expected to position ABB more strongly to benefit from significant investments in U.S. EV market with focus on sustainable fleet electrification
Transaction builds on ABB’s initial investment as part of series A venture capital funding and increases stake to approx. 60%
(BUSINESS WIRE)-- ABB today announced the acquisition of a controlling stake in electric vehicle (EV) commercial charging infrastructure solutions company InCharge Energy. The addition of InCharge Energy will strengthen ABB’s E-mobility Division in the North American market by broadening its customer base and expanding its fleet electrification software and digital services offering.

The transaction is part of ABB E-mobility’s growth strategy and is intended to accelerate the expansion of its portfolio to include turnkey EV infrastructure solutions to private and public commercial fleets, EV manufacturers, ride-share operators, municipalities, and commercial facilities owners. Financial terms of the transaction were not disclosed.

InCharge Energy tailors end-to-end EV charging infrastructure solutions, from initial consultancy and recommendations on required energy upgrades to the procurement, installation, operation, and maintenance of charging systems. It also provides cloud-based software services for the optimization of energy management, critical for maximizing fleet business performance. Its innovative service models offer subscription solutions such as software-as-a-service and fully financed charging-as-a-service.

With solutions for a broad range of customers from last mile delivery to rental fleets, InCharge Energy has several master agreements with major commercial fleet operators in the U.S. Founded in 2018 and based in California, the company has around 50 employees and is active in the U.S. and Canada.

ABB initially acquired a 10 percent stake through its investment in the Series A venture capital funding round in 2020 and has now increased its interest to approximately 60 percent of InCharge Energy’s issued share capital. Founders Cameron Funk and Terry O’Day, together with the current management team, will continue to lead the company and retain the remaining stake.

“As a world leader in sustainable transport electrification – from charging solutions for cars, buses and trucks to rail infrastructure and on-shore marine electrification – we expect to continue to outgrow this strong market based on market-leading technology and innovation. This transaction is part of our commitment to accelerate the future of sustainable transport and strengthens the support to current and future customers and partners in the U.S.” said Tarak Mehta, President of ABB’s Electrification business area.

Frank Muehlon, President of ABB’s E-mobility Division said: “Today’s announcement is another important step in the evolution of our customer-focused EV offering from hardware solutions to digital and future mobility services. Together with InCharge Energy and its service-centric customer approach, we are ideally positioned to benefit from the significant future growth of the U.S. EV market, where fleet electrification is expected to be a major driver, especially for fast-charging solutions. With our combined end-to-end turnkey solutions, we stand ready to help the U.S. achieve its aim of building a nationwide network of 500,000 EV chargers by 2030.”

Cameron Funk, CEO of InCharge Energy added: “ABB, as a pioneer of the green mobility revolution, is a natural fit for us. Most of our turnkey solutions already include ABB’s state-of-the-art charging hardware and we have partnered closely since ABB’s initial investment. One of the keys to further growth will be our combined ability to offer turnkey solutions and advanced services to fleet managers and EV drivers.”

As part of the recently signed Infrastructure Investment and Jobs Act, the U.S. is expected to allocate $7.5 billion to build out the national network of EV chargers and invest over $5 billion in clean transit buses to accelerate EV adoption, reduce air pollution and create jobs. As the world leader in EV charging solutions, ABB is ready to support the expansion of the country’s charging network and help meet the goals of the Act.

ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries. www.abb.com

About InCharge Energy
InCharge Energy is an energy solutions company that is accelerating electrification of the transportation industry by providing a comprehensive scalable e-fleet solution. We tailor our solutions to private and public commercial fleets, electric vehicle OEMs, ride-share operators, municipalities and commercial/residential facilities owners.

Important notice about forward-looking information

This press release contains forward-looking statements relating to the acquisition by ABB of a majority stake in InCharge Energy. Such forward-looking statements can be identified by words such as plans, intends, expects, and other similar terms. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. Among other risks, there can be no guarantee that the expected benefits of the investment will be realized. No forward-looking statement can be guaranteed. Forward-looking statements in the press release should be evaluated together with the many uncertainties that affect ABB's business, particularly those identified in the cautionary factors discussion in ABB's Annual Report on Form 20-F. ABB undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005482/en/

Contacts
For more information please contact:

ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
or
Investor Relations
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com

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AEM Announces Major Upgrade to the Earth Networks Total Lightning Network®

 Enhanced network enables organizations to pinpoint lightning activity with location accuracy under 100 meters


LONGMONT, Colo-Wednesday 26 January 2022 [ AETOS Wire ]


(BUSINESS WIRE)-- AEM today announced the highly anticipated update of the Earth Networks Total Lightning Network® (ENTLN). With significant enhancements to both location accuracy and lightning detection efficiency, the ENTLN now improves the ability for AEM customers to track real-time lightning and provide early warning for severe weather events that could threaten public safety and operational effectiveness.


The enhancements are driven through redesigns of the proprietary ENTLN algorithms and include:


Exceptional lightning location accuracy now under 100 meters. With enhanced accuracy, those in charge of keeping people and assets safe from severe weather have further precision to make confident decisions in moments that matter.


Detection efficiency over 95% regionally, with 30-50% more lightning detected worldwide. With increased detection efficiency, the ENTLN improves upon its industry leading reliability.


90% cloud-to-ground and in-cloud lightning classification accuracy. For customers who make decisions based on the type of lightning, improved classification enhances the ability to track lightning events relevant to a specific situation.


Lightning data from ENTLN is now available in expanded data formats for seamless consumption into 3rd party applications to investigate weather events, verify strikes and analyze lightning induced damage. These new network capabilities are also accompanied by a redesigned lightning sensor allowing for easier deployments and maintenance in remote environments.


The new lightning offering is now integrated into AEM’s suite of decision support applications including:


Earth Networks Sferic Products – for safeguarding lives and assets from severe weather including lightning, high winds, and heavy precipitation, the Sferic product line provides over 120 map layers displaying current conditions and forecasting and enables custom alerts to be delivered via email, text, or via push notifications to a companion mobile app.


OneRain Contrail® – for flood risk management and warning, dam safety, and reservoir gate operations, Contrail delivers lightning information to ensure first responder safety and identify more vigorous convective storms that may exacerbate local flash flooding and high-water conditions.


FTS360 – for wildfire monitoring and mitigation, FTS360 integrates sensor and station data, camera imagery, and video to provide complete situational awareness of current and potential wildfire events. The lightning data improves response time by providing early detection and verification of potential wildfire ignitions.


“With environmental risks escalating and increased impacts from severe weather events around the world, both the public and private sectors are growing increasingly dependent on real-time weather insights to drive their emergency action plans, keep people safe, and minimize downtime,” said Mark Miller, Chief Commercial Officer, AEM. “We are excited to bring these improvements to our industry-leading lightning detection network and ensure decision makers have access to the most trusted and reliable lightning data on the market.”


“As an early adopter of the new ENTLN, we have been impressed with the increased detection efficiency and location accuracy it has brought to the Australia Total Lightning Network (ATLN),” said Martin Palmer, Managing Director, WeatherZone. “Their data, along with our solutions and insights, provides our customers with the operational intelligence they need to make agile and confident decisions. Earth Networks enables us to provide a comprehensive solution to organisations and businesses across Australia.”


Operating over 1,800 sensors across 100 countries, the Earth Networks Total Lightning Network is the most advanced global lightning network in the world. Its ability to comprehensively monitor both in-cloud and cloud-to-ground lightning enables the creation of faster severe weather alerts, lightning-derived radar alternatives and real-time storm visualization.


The new lightning network capabilities, as well as AEM’s broader set of environmental risk solutions, are on display at the American Meteorological Society (AMS) 102nd Annual Meeting from now until January 27, 2022. To learn more visit AEM at https://aem.eco.


About AEM


AEM is combining global technology leaders to empower communities and organizations to survive and thrive in the face of escalating environment risks. By deploying intelligent sensing networks, operating a secure and scalable data management infrastructure, and delivering high-value analytics through a suite of end-user applications, AEM serves as the essential source for environmental insights. These technologies enable positive outcomes, helping reduce environmental impact and creating a safer world. For more information, visit https://aem.eco.


View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005052/en/


Contacts

Anuj Agrawal

Anuj.Agrawal@aem.eco


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Yokogawa Survey Reveals Significant Impact of Industrial Autonomy on Environmental Sustainability

 TOKYO-Monday 31 January 2022 [ AETOS Wire ]


(BUSINESS WIRE) -- Yokogawa Electric Corporation (TOKYO: 6841) reveals today the results of its latest survey* to gain further insights into the current and future state of industrial autonomy in process manufacturing. The survey highlights that the number of manufacturers moving forward with industrial autonomy is clearly increasing, and that there is a high awareness of the expected benefits on environmental sustainability.


This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220127005054/en/


The global survey was conducted in seven markets (China, Germany, India, Japan, Saudi Arabia, SE Asia and the US) amongst 534 respondents from 390 companies in the chemical & petrochemical, life sciences, oil & gas, power generation, and renewable energy industry sectors.


Key insights

Regarding environmental sustainability, 45% of the respondents anticipate that industrial autonomy will have a significant impact and another 36% expect a moderate impact in the areas of dynamic energy optimization, water management, and emissions reduction. In contrast, only 6% expect industrial autonomy to have no impact at all on environmental sustainability.


The implementation of industrial autonomy projects is starting to gather pace, with 51% of the respondents surveyed now scaling deployment across multiple facilities and business functions and another 19% reporting they have deployed in at least one facility or business function.


While productivity improvements in production and manufacturing processes are expected to deliver the highest return on investment (ROI) in digital transformation over the next three years – with 31% ranking this area first and a further 20% ranking it second – health, safety and environment is emerging as a key area of ROI, with 26% ranking it first (13%) or second (13%).


With the ongoing COVID-19 pandemic, increasing remote operations capabilities represents a key factor in industrial autonomy. The survey reveals that one-third (33%) of manufacturers have deployed remote operations in single sites and 31% have implemented across multi-sites in connection to industrial autonomy.


C-level executives play a key role in plant-level autonomous planning, with the survey respondents saying that the Chief Executive Officer (38%), Chief Technical Officer (34%), and Chief Information Officer (31%) are the primary final decision-makers. These decision-makers are supported by senior level technical professionals, with 43% saying the Chief Digital Officer has significant influence on plant level autonomy decisions.


“It is gratifying to see from our latest survey that environmental sustainability is emerging as an area in which the shift from industrial automation to industrial autonomy, which we call IA2IA, is expected to make a significant positive impact,” explained Tsuyoshi Abe, senior vice president and head of the Marketing Headquarters at Yokogawa Electric. “Overall, however, our survey also indicates that one of the biggest challenges in implementing industrial autonomy is the lack of a clear roadmap, with almost half seeing it as their most significant challenge. This underlines the importance of a defined roadmap to industrial autonomy and finding the right partner to develop it.”


The survey report can be downloaded from the following website:

https://www.yokogawa.com/ia2ia/


* The "Global End-user Survey on the Implementation of Industrial Autonomy" was conducted on behalf of Yokogawa by research company Omdia in September 2021 among 534 respondents from 390 companies across seven global markets: China, Germany, India, Japan, Saudi Arabia, SE Asia, and the US. Respondents comprised manufacturers/end-users, OEMs, and systems integrators in the chemical & petrochemical, life sciences, upstream and mid-stream oil & gas, refining, power generation, and renewable energy power generation industry sectors. The survey respondents were in IT management, operations/project/plant management, and corporate management.


About Yokogawa

Yokogawa provides advanced solutions in the areas of measurement, control, and information to customers across a broad range of industries, including energy, chemicals, materials, pharmaceuticals, and food. Yokogawa addresses customer issues regarding the optimization of production, assets, and the supply chain with the effective application of digital technologies, enabling the transition to autonomous operations.

Founded in Tokyo in 1915, Yokogawa continues to work toward a sustainable society through its 17,500 employees in a global network of 119 companies spanning 61 countries.

For more information, visit www.yokogawa.com

The names of corporations, organizations, products, services and logos herein are either registered trademarks or trademarks of Yokogawa Electric Corporation or their respective holders.


View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005054/en/


Photos/Multimedia Gallery Available: https://www.businesswire.com/news/home/52568913/en


Contacts

Media inquiries:

PR Section,

Integrated Communications Center

Yokogawa Electric Corporation

E-mail: Yokogawa-pr@cs.jp.yokogawa.com







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Schlumberger Announces Fourth-Quarter and Full-Year 2021 Results

 

HOUSTON-Monday 31 January 2022 [ AETOS Wire ]

·         Fourth-quarter revenue of $6.22 billion increased 6% sequentially and 13% year-on-year

·         Fourth-quarter GAAP EPS of $0.42 increased 8% sequentially and 56% year-on-year

·         Fourth-quarter EPS, excluding charges and credits, of $0.41 increased 14% sequentially and 86% year-on-year

·         Fourth-quarter cash flow from operations was $1.93 billion and free cash flow was $1.30 billion

·         Board approved quarterly cash dividend of $0.125 per share

·         Full-year revenue was $22.9 billion

·         Full-year GAAP EPS was $1.32

·         Full-year EPS, excluding charges and credits, was $1.28

·         Full-year cash flow from operations was $4.65 billion and free cash flow was $3.00 billion

(BUSINESS WIRE-- Schlumberger Limited (NYSE: SLB) today reported results for the fourth-quarter and full-year 2021.

Fourth-Quarter Results

 

 

(Stated in millions, except per share amounts)

 

 

Three Months Ended

 

Change

 

 

Dec. 31, 2021

 

Sept. 30, 2021

 

Dec. 31, 2020

 

Sequential

 

Year-on-year

Revenue*

 

$6,225

 

$5,847

 

$5,532

 

6%

 

13%

Income before taxes - GAAP basis

 

$755

 

$691

 

$471

 

9%

 

60%

Net income - GAAP basis

 

$601

 

$550

 

$374

 

9%

 

61%

Diluted EPS - GAAP basis

 

$0.42

 

$0.39

 

$0.27

 

8%

 

56%

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

$1,381

 

$1,296

 

$1,112

 

7%

 

24%

Adjusted EBITDA margin**

 

22.2%

 

22.2%

 

20.1%

 

2 bps

 

208 bps

Pretax segment operating income**

 

$986

 

$908

 

$654

 

9%

 

51%

Pretax segment operating margin**

 

15.8%

 

15.5%

 

11.8%

 

31 bps

 

401 bps

Net income, excluding charges & credits**

 

$587

 

$514

 

$309

 

14%

 

90%

Diluted EPS, excluding charges & credits**

 

$0.41

 

$0.36

 

$0.22

 

14%

 

86%

 

 

 

 

 

 

 

 

 

 

 

Revenue by Geography

 

 

 

 

 

 

 

 

 

 

International

 

$4,898

 

$4,675

 

$4,343

 

5%

 

13%

North America*

 

1,281

 

1,129

 

1,167

 

13%

 

10%

Other

 

46

 

43

 

22

 

n/m

 

n/m

 

 

$6,225

 

$5,847

 

$5,532

 

6%

 

13%

 

 

 

 

 

 

 

 

 

 

 

*Schlumberger divested certain businesses in North America during the fourth quarter of 2020. These businesses generated revenue of $284 million during the fourth quarter of 2020. Excluding the impact of these divestitures, global fourth-quarter 2021 revenue increased 19% year-on-year. North America fourth-quarter 2021 revenue, excluding the impact of these divestitures, increased 45% year-on-year.

**These are non-GAAP financial measures. See sections titled "Charges & Credits", "Divisions", and "Supplemental Information" for details.

n/m = not meaningful

 

 

 

(Stated in millions)

 

 

Three Months Ended

 

Change

 

 

Dec. 31, 2021

 

Sept. 30, 2021

 

Dec. 31, 2020

 

Sequential

 

Year-on-year

Revenue by Division

 

 

 

 

 

 

 

 

 

 

Digital & Integration

 

$889

 

$812

 

$832

 

10%

 

7%

Reservoir Performance*

 

1,287

 

1,192

 

1,247

 

8%

 

3%

Well Construction

 

2,388

 

2,273

 

1,868

 

5%

 

28%

Production Systems**

 

1,765

 

1,674

 

1,649

 

5%

 

7%

Other

 

(104)

 

(104)

 

(64)

 

n/m

 

n/m

 

 

$6,225

 

$5,847

 

$5,532

 

6%

 

13%

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Income by Division

 

 

 

 

 

 

 

 

 

 

Digital & Integration

 

$335

 

$284

 

$269

 

18%

 

25%

Reservoir Performance

 

200

 

$190

 

95

 

5%

 

111%

Well Construction

 

368

 

$345

 

183

 

6%

 

101%

Production Systems

 

159

 

$166

 

155

 

-4%

 

3%

Other

 

(76)

 

$(77)

 

(48)

 

n/m

 

n/m

 

 

$986

 

$908

 

$654

 

9%

 

51%

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Margin by Division

 

 

 

 

 

 

 

 

 

 

Digital & Integration

 

37.7%

 

35.0%

 

32.4%

 

268 bps

 

537 bps

Reservoir Performance

 

15.5%

 

16.0%

 

7.6%

 

-43 bps

 

792 bps

Well Construction

 

15.4%

 

15.2%

 

9.8%

 

20 bps

 

559 bps

Production Systems

 

9.0%

 

9.9%

 

9.4%

 

-85 bps

 

-38 bps

Other

 

n/m

 

n/m

 

n/m

 

n/m

 

n/m

 

 

15.8%

 

15.5%

 

11.8%

 

31 bps

 

401 bps

 

 

 

 

 

 

 

 

 

 

 

*Schlumberger divested its OneStim® pressure pumping business in North America during the fourth quarter of 2020. This business generated revenue of $274 million during the fourth quarter of 2020. Excluding the impact of this divestiture, Reservoir Performance fourth-quarter 2021 revenue increased 32% year-on-year.

**Schlumberger divested its low-flow artificial lift business in North America during the fourth quarter of 2020. This business generated revenue of $11 million during the fourth quarter of 2020. Excluding the impact of this divestiture, Production Systems fourth-quarter 2021 revenue increased 8% year-on-year.

n/m = not meaningful

Schlumberger CEO Olivier Le Peuch commented, “Strengthening activity, accelerating digital sales, and outstanding free cash flow performance combined to deliver another quarter of remarkable financial results to close the year with great momentum.

“In retrospect, we started 2021 with a constructive outlook and an ambition to visibly expand margins and deliver robust free cash flow, while remaining focused on capital discipline.

“In fact, we concluded the year with 88% growth in EPS, excluding charges and credits; adjusted EBITDA margin of 21.5%; and $3.0 billion in free cash flow. The adjusted EBITDA margin—which represents a year-on-year expansion of 320 basis points (bps)—is the highest level since 2018. We restored our North America pretax operating margin to double-digits and expanded our international margin, both exceeding prepandemic 2019 levels.

“This was also a momentous year for us in terms of our commitment to sustainability. We announced our comprehensive 2050 net-zero commitment, inclusive of Scope 3 emissions, and launched our Transition Technologies* portfolio.

“I am extremely proud of the full-year results, as we operationalized our returns-focused strategy and surpassed our financial ambitions with resounding success.

“Turning to the fourth-quarter results, sequential revenue growth was broad based across all geographies and Divisions, led by Digital & Integration.

“International revenue of $4.90 billion grew 5% sequentially, driven primarily by strengthening activity, increased digital sales, and early benefits of pricing improvements. The sequential revenue increase was led by growth in Europe/CIS/Africa due to strong offshore activity in Africa and new projects in Europe. This growth was complemented by project startups and activity gains in the Middle East & Asia and sustained activity growth in Latin America. The fourth-quarter international revenue performance represents a 13% year-on-year increase, enabling us to accomplish our double-digit revenue growth ambition for the second half of 2021 when compared to the same period in 2020.

“In North America, revenue of $1.28 billion grew 13% sequentially, outperforming the rig count growth. The sequential growth was driven by strong offshore and land drilling activity and increased exploration data licensing in the US Gulf of Mexico and the Permian.

“Among the Divisions, Digital & Integration revenue increased 10% sequentially, driven by very strong digital sales, as the adoption of our digital offering continues to accelerate, and from increased exploration data licensing sales. Reservoir Performance revenue increased 8% sequentially from higher intervention activity in Latin America, new stimulation projects and activity gains in the Middle East & Asia, and increased offshore evaluation activity in North America. Well Construction revenue increased 5% due to higher land and offshore drilling activity both in North America and internationally. Similarly, Production Systems revenue grew 5% sequentially from new offshore projects and year-end sales.

“Overall, our fourth-quarter pretax segment operating income increased 9% sequentially, attaining the highest quarterly operating margin level since 2015. Contributing to this remarkable performance are the accretive effect of accelerating digital sales and early signs of pricing improvements, particularly when driven by new technology adoption and performance differentiation.

“Looking ahead into 2022, the industry macro fundamentals are very favorable, due to the combination of projected steady demand recovery, an increasingly tight supply market, and supportive oil prices. We believe this will result in a material step up in industry capital spending with simultaneous double-digit growth in international and North American markets. Absent any further COVID-related disruption, oil demand is expected to exceed prepandemic levels before the end of the year and to further strengthen in 2023. These favorable market conditions are strikingly similar to those experienced during the last industry supercycle, suggesting that resurgent global demand-led capital spending will result in an exceptional multiyear growth cycle.

“Schlumberger is well prepared to fully seize this growth ahead of us. We have entered this cycle in a position of strength, having reset our operating leverage, expanded peer-leading margins across multiple quarters, and aligned our technology and business portfolio with the new industry imperatives. Throughout 2021, we continued to strengthen our core portfolio, enhanced our sustainability leadership, successfully advanced our digital journey, and expanded our new energy portfolio.

“The combination of our performance and returns-focused strategy is resulting in enduring customer success and higher earnings. As such, we have increased confidence in reaching our midcycle adjusted EBITDA margin ambition earlier than anticipated and sustaining our financial outperformance. I am truly excited about this year and the outlook for Schlumberger—rooted in capital discipline and superior returns while also continuing to lead technology, digital, and clean energy innovation—to enable performance and sustainability for the global energy industry.”

Other Events

On November 30, 2021, Schlumberger deposited sufficient funds with the trustee for its $1.0 billion of 2.40% Senior Notes due May 2022 to satisfy and discharge all of its legal obligations relating to such notes.

On January 20, 2022, Schlumberger’s Board of Directors approved a quarterly cash dividend of $0.125 per share of outstanding common stock, payable on April 7, 2022 to stockholders of record on February 9, 2022.

Fourth-Quarter Revenue by Geographical Area

 

 

(Stated in millions)

 

 

Three Months Ended

 

Change

 

 

Dec. 31, 2021

 

Sept. 30, 2021

 

Dec. 31, 2020

 

Sequential

 

Year-on-year

North America*

 

$1,281

 

$1,129

 

$1,167

 

13%

 

10%

Latin America

 

1,204

 

1,160

 

969

 

4%

 

24%

Europe/CIS/Africa

 

1,587

 

1,482

 

1,366

 

7%

 

16%

Middle East & Asia

 

2,107

 

2,033

 

2,008

 

4%

 

5%

Other

 

46

 

43

 

22

 

n/m

 

n/m

 

 

$6,225

 

$5,847

 

$5,532

 

6%

 

13%

International

 

$4,898

 

$4,675

 

$4,343

 

5%

 

13%

North America*

 

$1,281

 

$1,129

 

$1,167

 

13%

 

10%

*Schlumberger divested certain businesses in North America during the fourth quarter of 2020. These businesses generated revenue of $284 million during the fourth quarter of 2020. Excluding the impact of these divestitures, global fourth-quarter 2021 revenue increased 19% year-on-year. North America fourth-quarter 2021 revenue, excluding the impact of these divestitures, increased 45% year-on-year.

n/m = not meaningful

North America

North America revenue of $1.28 billion increased 13% sequentially, driven by strong offshore and land drilling activity and increased exploration data licensing in the US Gulf of Mexico and the Permian.

International

Revenue in Latin America of $1.20 billion increased 4% sequentially due to double-digit revenue growth in Argentina, Brazil, and Mexico, mainly from robust Well Construction activity. Reservoir Performance and Production Systems revenue also increased but was partially offset by a temporary production interruption in our Asset Performance Solutions (APS) projects in Ecuador due to pipeline disruption.

Europe/CIS/Africa revenue of $1.59 billion increased 7% sequentially, due to higher revenue in Europe and Africa driven by strong offshore activity, increased digital sales, and new projects—mainly in Turkey—that benefited Production Systems. These increases, however, were partially offset by reduced Reservoir Performance and Well Construction activity in Russia and Scandinavia due to the onset of seasonal effects.

Revenue in the Middle East & Asia of $2.11 billion increased 4% sequentially due to new projects and activity gains that benefited Reservoir Performance in Saudi Arabia, Oman, Australia, Qatar, Indonesia, and Iraq. Similarly, Well Construction revenue grew from new projects in Iraq and the United Arab Emirates, and from increased drilling activity in Qatar, Kuwait, and Indonesia. Growth was also driven by higher digital sales in China and Malaysia. These increases, however, were partially offset by lower sales of production systems due to delivery delays as a result of logistics constraints.

Fourth-Quarter Results by Division

Digital & Integration

 

 

 

 

 

 

 

 

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Change

 

 

 

 

 

 

 

 

 

 

Dec. 31, 2021

 

 

 

 

 

 

 

 

 

Sept. 30, 2021

 

 

 

 

 

 

 

 

 

Dec. 31, 2020

 

 

 

 

 

 

 

 

 

Sequential

 

Year-on-year

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

$624

 

$615

 

$688

 

1%

 

-9%

North America

 

 

 

 

 

 

 

 

 

263

 

196

 

142

 

34%

 

85%

Other

 

 

 

 

 

 

 

 

 

2

 

1

 

2

 

n/m

 

n/m

 

 

 

 

 

 

 

 

 

 

$889

 

$812

 

$832

 

10%

 

7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating income

 

 

 

 

 

 

 

 

 

$335

 

$284

 

$269

 

18%

 

25%

Pretax operating margin

 

 

 

 

 

 

 

 

 

37.7%

 

35.0%

 

32.4%

 

268 bps

 

537 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

n/m = not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital & Integration revenue of $889 million increased 10% sequentially, propelled by accelerated digital sales internationally, particularly in Europe/CIS/Africa and Middle East & Asia, and increased exploration data licensing sales in North America offshore and the Permian. These increases, however, were partially offset by the effects of a temporary production interruption in our APS projects in Ecuador due to pipeline disruption.

Digital & Integration pretax operating margin of 38% expanded 268 bps sequentially, due to improved profitability in digital and exploration data licensing.

Reservoir Performance

 

 

(Stated in millions)

 

 

Three Months Ended

 

Change

 

 

Dec. 31, 2021

 

Sept. 30, 2021

 

Dec. 31, 2020

 

Sequential

 

Year-on-year

Revenue*

 

 

 

 

 

 

 

 

 

 

International

 

$1,194

 

$1,112

 

$906

 

7%

 

32%

North America*

 

92

 

79

 

339

 

16%

 

-73%

Other

 

1

 

1

 

2

 

n/m

 

n/m

 

 

$1,287

 

$1,192

 

$1,247

 

8%

 

3%

 

 

 

 

 

 

 

 

 

 

 

Pretax operating income

 

$200

 

$190

 

$95

 

5%

 

111%

Pretax operating margin

 

15.5%

 

16.0%

 

7.6%

 

-43 bps

 

792 bps

 

 

 

 

 

 

 

 

 

 

 

*Schlumberger divested its OneStim pressure pumping business in North America during the fourth quarter of 2020. This business generated revenue of $274 million during the fourth quarter of 2020. Excluding the impact of this divestiture, global fourth-quarter 2021 revenue increased 32% year-on-year. North America fourth-quarter 2021 revenue, excluding the impact of this divestiture, increased 42% year-on-year.

n/m = not meaningful

Reservoir Performance revenue of $1.29 billion increased 8% sequentially due to higher intervention activity across the international offshore markets, mainly in the UK and Latin America, and from new stimulation projects and activity gains in the Middle East & Asia, particularly in Saudi Arabia. These increases, however, were partially offset by the onset of seasonal effects in Russia and Scandinavia. North America revenue grew from higher offshore evaluation activity.

Reservoir Performance pretax operating margin of 16% was essentially flat sequentially. Profitability improved from higher offshore and exploration activity but was offset by technology mix and seasonality effects in the Northern Hemisphere.

Well Construction

 

 

(Stated in millions)

 

 

Three Months Ended

 

Change

 

 

 

 

 

 

 

 

 

 

Dec. 31, 2021

 

 

 

 

 

 

 

 

 

Sept. 30, 2021

 

 

 

 

 

 

 

 

 

Dec. 31, 2020

 

 

 

 

 

 

 

 

 

Sequential

 

Year-on-year

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

$1,901

 

$1,839

 

$1,569

 

3%

 

21%

North America

 

441

 

382

 

252

 

15%

 

75%

Other

 

46

 

52

 

47

 

n/m

 

n/m

 

 

$2,388

 

$2,273

 

$1,868

 

5%

 

28%

 

 

 

 

 

 

 

 

 

 

 

Pretax operating income

 

$368

 

$345

 

$183

 

6%

 

101%

Pretax operating margin

 

15.4%

 

15.2%

 

9.8%

 

20 bps

 

559 bps

 

 

 

 

 

 

 

 

 

 

 

n/m = not meaningful

Well Construction revenue of $2.39 billion increased 5% sequentially, driven by higher measurements and drilling fluids activity and increased drilling equipment sales. North America revenue increased due to higher rig count on land and increased well construction activity in the US Gulf of Mexico. International revenue growth was driven by the double-digit growth in Latin America, mainly in Mexico and Argentina, in Sub-Sahara Africa, and in the Middle East in Kuwait, Qatar, Iraq, and UAE. These increases were partially offset by seasonal effects in Russia and Scandinavia.

Well Construction pretax operating margin of 15% was essentially flat sequentially as the favorable mix of increased activity and new technology was offset by seasonal effects in the Northern Hemisphere.

Production Systems

 

 

(Stated in millions)

 

 

Three Months Ended

 

Change

 

 

Dec. 31, 2021

 

Sept. 30, 2021

 

Dec. 31, 2020

 

Sequential

 

Year-on-year

Revenue*

 

 

 

 

 

 

 

 

 

 

International

 

$1,278

 

$1,205

 

$1,215

 

6%

 

5%

North America*

 

484

 

469

 

433

 

3%

 

12%

Other

 

3

 

0

 

1

 

n/m

 

n/m

 

 

$1,765

 

$1,674

 

$1,649

 

5%

 

7%

 

 

 

 

 

 

 

 

 

 

 

Pretax operating income

 

$159

 

$166

 

$155

 

-4%

 

3%

Pretax operating margin

 

9.0%

 

9.9%

 

9.4%

 

-85 bps

 

-38 bps

 

 

 

 

 

 

 

 

 

 

 

*Schlumberger divested its low-flow artificial lift business in North America during the fourth quarter of 2020. This business generated revenue of $11 million during the fourth quarter of 2020. Excluding the impact of this divestiture, global fourth-quarter 2021 revenue increased 8% year-on-year. North America fourth-quarter revenue, excluding the impact of this divestiture, increased 15% year-on-year.

n/m = not meaningful

Production Systems revenue of $1.76 billion increased 5% sequentially. Revenue increases in subsea, well production, and midstream production systems were offset by a revenue decline in surface production systems. International activity was driven by double-digit growth in Europe/CIS/Africa—mainly from strong project progress in Angola, Gabon, and Mozambique, new projects in Turkey, and increased activity in Scandinavia and Russia & Central Asia—and by growth in Latin America, mainly in Brazil and Ecuador. This revenue growth was partially offset by delivery delays in the Middle East & Asia as a result of global supply and logistics constraints.

Production Systems pretax operating margin of 9% declined 85 bps sequentially due to an unfavorable mix and the impact of delayed deliveries due to global supply and logistics constraints.

Quarterly Highlights

As activity growth accelerates, Schlumberger’s performance differentiation, technology, and integration capabilities continue to earn customer recognition and contract awards for all types of oil and gas projects, from short- and long-cycle development to exploration—including offshore and deepwater. Awards from the quarter include:

·         Chevron U.S.A. Inc. awarded Schlumberger contracts for integrated well construction and wireline services for deepwater projects in the Gulf of Mexico. Schlumberger was awarded the contracts for integrated services and technology for deepwater wells, in addition to subsea services previously awarded for another high-pressure, high-temperature (HPHT) deepwater Gulf of Mexico project. The integrated contract includes well construction, for which Schlumberger will bring specific technologies suited for HPHT environments as well as digital capabilities that will enhance overall project execution, efficiency, and safety, including the Performance Live* remote operation service.

·         TotalEnergies has awarded Schlumberger a three-year contract for the provision of a significant well intervention scope to improve well production and downhole testing services on new wells located offshore the United Kingdom and Denmark. Under the contract, which has options for two single-year extensions, the project team will apply a comprehensive portfolio of downhole testing services, coiled tubing, slickline, and wireline—including the latest technologies. Work is expected to commence in Q1 2022.

·         In Saudi Arabia, Schlumberger was awarded a five-year contract for coiled tubing drilling services to be deployed in major gas fields across the Kingdom. The contract, which has a two-year option to extend, includes a full suite of unique underbalanced coiled tubing drilling technologies and other fit-for-basin technology.

·         Equinor has made a direct award to Schlumberger for four RapidXtreme* TAML 3 large-bore multilateral junctions to retrofit existing wells to multilaterals in the Statfjord Field. This award is the result of an integrated contract and the unique architecture of the Rapid* multilateral systems—part of the Transition Technologies portfolio. Conversion of existing wellbores to multilaterals will unlock additional reserves and extend the productive life in the Statfjord Field while reducing the carbon impact of production. Installation of these multilateral completion systems is expected to commence in Q2 2022.

·         Woodside, as operator for and on behalf of the Scarborough Joint Venture, for the Scarborough project offshore Western Australia, awarded a contract to OneSubsea®—the subsea technologies, production, and processing systems division of Schlumberger—as part of the Subsea Integration Alliance. The contract includes a subsea production systems scope, which OneSubsea will deliver, including wellheads, single-phase flowmeters, subsea distribution units, flying leads, a connection system, subsea production control system for topsides and subsea, and postdelivery services. This project will help the Scarborough Joint Venture maximize the potential of this significant gas resource, which will be developed through new offshore facilities connected to a second liquified natural gas (LNG) train at the existing Pluto LNG onshore facility.

·         In Indonesia, Premier Oil—a subsidiary of Harbour Energy—has awarded Schlumberger a three-year contract for services and technology for its deepwater offshore exploration project in the Andaman Sea. The contract scope covers a broad range of services, including drilling, drilling fluids, wireline logging, and well testing. A Schlumberger team drawn from three Divisions will deliver a broad set of services and technologies, including Muzic* wireless telemetry, Quanta Geo* photorealistic reservoir geology service, and the Sonic Scanner* acoustic scanning platform—driving performance and efficiency of exploration operations. Work is expected to commence in the second quarter of 2022.

Schlumberger technologies—which won an array of innovation awards in 2021, including an Offshore Technology Conference Spotlight on New Technology, six World Oil Awards, and two Hart Energy's E&P Meritorious Awards for Engineering Innovation—and peer-leading execution capabilities are making significant performance impacts for customers, who are increasingly adopting technologies that help them create differentiated value.

Examples of performance impact during the quarter in North America include:

·         In the Appalachian Basin, CNX implemented NeoSteer* at-bit steerable system paired with Smith Bits, a Schlumberger company, cutting structures and dual-telemetry MWD xBolt G2* accelerated drilling service to drill curves and laterals consistently in single runs in their Marcellus Shale assets. Over the last three months, Schlumberger has drilled the top three longest single curve and laterals in CNX's history, with footages ranging between 21,836 ft and 22,565 ft, and with exceptional safety and service quality performance. These are also the top three longest single curve and lateral operations in Schlumberger US Land history to date. NeoSteer system provided enhanced steerability, overall superior performance, and reduced footprint when compared with conventional technologies, resulting in a reduction in drilling time, and savings in drilling operational costs for these three record wells.

·         In the Permian Basin, an ExxonMobil and Schlumberger partnership enabled the reduction of drilling rig days by 34% across five wells, performance that will enable ExxonMobil to drill more wells per year with the same number of rigs. An integrated fit-for-basin technology package, including the PowerDrive Orbit G2* rotary steerable system and XBolt G2 accelerated drilling service—controlled from the ExxonMobil Remote Operations Center in Houston—enabled ExxonMobil to drill its first Delaware Basin well in less than nine days and achieve similar performance with five total record-setting wells. Compared to prior target performance benchmarks, a total reduction of more than 26 drilling days was realized for these five wells.

Examples of performance impact during the quarter internationally include:

·         In the fourth quarter of 2021, Schlumberger commenced integrated stimulation operations at Jafurah, the largest unconventional nonassociated gas field in the Kingdom of Saudi Arabia. The combination of cutting-edge technology, fully integrated supply chain, and close project management collaboration between Aramco and Schlumberger resulted in more than 35% improvement in stages per month. This new performance benchmark matches that of top-quartile stimulation fleets in United States unconventional assets during 2021—a key ambition set between Schlumberger and Aramco on the path to deliver the full potential of the Jafurah project.

·         In Kuwait, Schlumberger has begun to deploy technology with Kuwait Oil Company (KOC) to increase productivity of its Jurassic gas fields with rigless perforation, made possible by the newest generation of StreamLINE iX* extreme-performance polymer-locked wireline cable. A combination of technologies enabled by StreamLINE iX cable has reduced per-run operating time by half. The increased strength of this generation cable made it possible to run a 70-ft perforation gun in a single run—a first in the history of KOC rigless operations on wireline. The capabilities of the new StreamLINE iX cable have enabled use of technology that has reduced operating time per run and CO2 impact while saving deferred production.

·         Offshore Australia in the North West Shelf, Santos Ltd. recently achieved a record production rate from the first Van Gogh Phase 2 infill well, which exceeded expectations and produced at a peak rate of 23,200 bbl/d. The extended-reach, dual-lateral well was drilled with a total horizontal section of 5,430 m—490 m more than originally planned. The PowerDrive Archer* high build rate rotary steerable system and GeoSphere HD* high-definition reservoir mapping-while-drilling service enabled Santos to overcome numerous geological challenges and unlock the full production potential of this asset by executing an optimized well completion design.

·         In Argentina, Schlumberger deployed technology that reduced drilling time by 10 days and avoided 120 metric tons of CO2 emissions for a joint venture between YPF S.A. and Chevron in the unconventional Vaca Muerta Formation. Drilling the pilot extended-reach well on the project, Schlumberger used the NeoSteer* at-bit steerable system and new features of the autonomous downhole control system to minimize tortuosity and unplanned deviation, constructing a wellbore optimized to increase production. A PowerDrive vorteX* powered rotary steerable system equipped with DynaPower XP* extreme-power motor elastomer managed the high-temperature conditions, improved the rate of penetration (ROP), and enabled delivering 4,155 m of lateral section breaking the 1,000 m drilled-per-day barrier and it became the longest well lateral drilled in the field.

The adoption of Schlumberger’s comprehensive digital platform continues to accelerate as customers advance their digital transformation and apply digital solutions to improve productivity and efficiency. Furthermore, the use cases for Schlumberger digital solutions also continue to expand into adjacent sectors, increasing the total addressable market and enabling decarbonization in and beyond the oil and gas industry.

Digital awards and implementations from the quarter include:

·         Schlumberger will deploy the DELFI* cognitive E&P environment on the Norwegian CO2 project by the Northern Lights Joint Venture (NL), to streamline subsurface workflows and longer-term modeling and surveillance of CO2 sequestration. NL was established to develop the world’s first open-source CO2 transport and storage infrastructure, providing accelerated decarbonization opportunities for European industries, with an ambition to store up to 5 million metric tons of CO2 per year based on market demand. Northern Lights is part of Longship—Norway’s largest climate initiative—which comprises a full-scale carbon capture and storage (CCS) project, covering capture, transport, and storage of CO2.

·         Angola’s oil and gas regulator—Agência Nacional do Petróleo, Gás e Biocombustíveis (ANPG)—has signed an agreement with Schlumberger to fast-track its digital transformation, with the rollout of DELFI environment. The project follows a detailed consultation and review by a Schlumberger-led consulting team in collaboration with an ANPG team. The team evaluated ANPG’s technology landscape and digital readiness, resulting in a compressed digitalization roadmap. The accelerated deployment of the DELFI environment will enable efficient remote teamwork across ANPG, expanded data analytics capabilities, and increased exploration and field development efficiency—driving sizeable production gains.

·         In Ecuador, DrillOps Automate, part of the DrillOps* on-target well delivery solution, and DrillPilot* equipment sequencing software have been deployed on two Schlumberger rigs operating on its APS assets. These digital solutions are orchestrating multiple workflows and driving a step change in operational performance. Since deployment, more than 77,000 ft have been drilled with multiple levels of automation made possible using these advanced digital solutions. Automated rig control has increased on-bottom ROP and reduced connections time, resulting in a 10.6% average efficiency improvement at the end of 2021. Schlumberger continues to expand the use of digital solutions to improve integrated performance, increase safety, and reduce CO2 footprint—resulting in the creation and capture of higher value across these assets.

Decarbonization is a priority, and in 2021, Schlumberger made a bold commitment to achieve net-zero greenhouse gas emissions by 2050, with our net-zero target inclusive of Scope 3 emissions.

Schlumberger is uniquely positioned to help customers decarbonize oil and gas operations through our Transition Technologies portfolio and the novel application of our technologies in low-carbon energy:

·         Equinor recently completed the installation of a OneSubsea subsea multiphase boosting system, a solution that will reduce the cost and carbon impact of producing an additional 16 million barrels of oil from the Vigdis Field in the North Sea. In production for more than 20 years, the Vigdis Field is producing into the existing Snorre A facility, a cost advantage over building new infrastructure. Leveraging an all-electric control system, the multiphase boosting system requires less than 50% of the energy to produce the same volume of oil as compared to gas lift, avoiding 200,000 tons of CO2 equivalent over 10 years of operation at Vigdis and paving the way for future subsea electrification around the world.

·         In France, Schlumberger was awarded the downhole completions scope for a proof-of-concept green hydrogen storage pilot project called HyPSTER for Storengy, a company of ENGIE—the first project of its kind. HyPSTER aims to support the development of a green hydrogen ecosystem across France—and later Europe. Schlumberger is a key technical partner in this flagship development of renewable hydrogen underground storage using repurposed natural gas storage salt caverns. Schlumberger will provide equipment, engineering, project management, and develop fit-for-purpose economical solutions to enable future development at scale.

In Schlumberger New Energy, we are forging partnerships to apply a portfolio of low-carbon and carbon-neutral energy technologies across industries, contributing to a more sustainable future energy mix.

·         Schlumberger New Energy, the French Alternative Energies and Atomic Energy Commission (CEA), and partners have announced the signature of pilot project agreements with leading steel and cement companies on the pathway to net zero in those industries. In the steel industry, Genvia has agreed pilot projects with ArcelorMittal Méditerranée, a subsidiary of ArcelorMittal, a world leader in the steel industry; and Ugitech—part of Swiss Steel Group, a world leader in long stainless-steel products. In the cement industry, Genvia has agreed pilot projects with Vicat, a cement production group; and Hynamics—a low-carbon and renewable-hydrogen solutions subsidiary of EDF Group. Genvia aims to deliver the highest green-hydrogen creation efficiency, resulting in significantly less electricity use per kilogram of hydrogen produced.

·         Celsius Energy, a Schlumberger New Energy venture that provides geoenergy technology for zero-carbon heating and cooling of buildings, has expanded its commercial operations in Europe and North America. In France, a leading healthcare company has selected the Celsius Energy solution in two new developments, and feasibility studies for implementation at additional facilities is ongoing. In the US, Celsius Energy completed its first operation during the fourth quarter of 2021 at a prestigious East Coast university campus, opening new market opportunities for the expansion of Celsius Energy solutions. During COP26, more than 1,000 cities committed to the UN-backed “Cities Race to Zero” campaign, while companies and municipalities globally have advanced net-zero targets and commitments to address global greenhouse gas emissions. Celsius Energy is uniquely positioned to support these commitments, contributing to global decarbonization.

FINANCIAL TABLES

Full-Year Results

 

 

(Stated in millions, except per share amounts)

 

 

 

Twelve Months Ended

 

 

 

 

 

Dec. 31, 2021

 

Dec. 31, 2020

 

Change

Revenue*

 

 

$22,929

 

$23,601

 

-3%

Income (loss) before taxes - GAAP basis

 

 

$2,374

 

($11,298)

 

n/m

Net income (loss) - GAAP basis

 

 

$1,881

 

$(10,518)

 

n/m

Diluted EPS (loss per share) - GAAP basis

 

 

$1.32

 

$(7.57)

 

n/m

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

 

$4,925

 

$4,313

 

14%

Adjusted EBITDA margin**

 

 

21.5%

 

18.3%

 

320 bps

Pretax segment operating income**

 

 

$3,365

 

$2,401

 

40%

Pretax segment operating margin**

 

 

14.7%

 

10.2%

 

450 bps

Net income, excluding charges & credits**

 

 

$1,831

 

$956

 

92%

Diluted EPS, excluding charges & credits**

 

 

$1.28

 

$0.68

 

88%

 

 

 

 

 

 

 

 

Revenue by Geography

 

 

 

 

 

 

 

International

 

 

$18,295

 

$18,002

 

2%

North America*

 

 

4,466

 

5,478

 

-18%

Other

 

 

168

 

121

 

n/m

 

 

 

$22,929

 

$23,601

 

-3%

*Schlumberger divested certain businesses in North America during the fourth quarter of 2020. These businesses generated revenue of $1.347 billion during 2020. Excluding the impact of these divestitures, global 2021 revenue increased 3% year-on-year. North America 2021 revenue, excluding the impact of these divestitures, increased 8% year-on-year.

**These are non-GAAP financial measures. See sections titled "Charges & Credits", "Divisions", and "Supplemental Information" for details.

n/m = not meaningful

Condensed Consolidated Statement of Income (Loss)

(Stated in millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Twelve Months

Periods Ended December 31,

 

2021

 

 

 

 

2020

 

 

 

 

 

 

 

 

 

2021

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$6,225

 

 

 

 

$5,532

 

$22,929

 

$23,601

Interest and other income (1)

 

57

 

 

 

 

69

 

148

 

163

Gain on sales of businesses (1)

 

-

 

 

 

 

104

 

-

 

104

Expenses

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

5,136

 

 

 

 

4,828

 

19,271

 

21,000

Research & engineering

 

145

 

 

 

 

129

 

554

 

580

General & administrative

 

109

 

 

 

 

71

 

339

 

365

Impairments & other (1)

 

-

 

 

 

 

62

 

-

 

12,658

Interest (1)

 

137

 

 

 

 

144

 

539

 

563

Income (loss) before taxes (1)

 

$755

 

 

 

 

$471

 

$2,374

 

($11,298)

Tax expense (benefit) (1)

 

144

 

 

 

 

89

 

446

 

(812)

Net income (loss) (1)

 

$611

 

 

 

 

$382

 

$1,928

 

($10,486)

Net income attributable to noncontrolling interest

 

10

 

 

 

 

8

 

47

 

32

Net income (loss) attributable to Schlumberger (1)

 

$601

 

 

 

 

$374

 

$1,881

 

($10,518)

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share of Schlumberger (1)

 

$0.42

 

 

 

 

$0.27

 

$1.32

 

($7.57)

 

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding

 

1,403

 

 

 

 

1,392

 

1,400

 

1,390

Average shares outstanding assuming dilution

 

1,430

 

 

 

 

1,411

 

1,427

 

1,390

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & amortization included in expenses (2)

 

$532

 

 

 

 

$583

 

$2,120

 

$2,566

(1)

See section entitled “Charges & Credits” for details.

(2)

Includes depreciation of property, plant and equipment and amortization of intangible assets, multiclient seismic data costs, and APS investments.

Condensed Consolidated Balance Sheet

(Stated in millions)

 

 

Dec. 31,

 

Dec. 31,

Assets

 

2021

 

2020

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$3,139

 

$3,006

Receivables

 

5,315

 

5,247

Inventories

 

3,272

 

3,354

Other current assets

 

928

 

1,312

 

 

12,654

 

12,919

Investment in affiliated companies

 

2,044

 

2,061

Fixed assets

 

6,429

 

6,826

Goodwill

 

12,990

 

12,980

Intangible assets

 

3,211

 

3,455

Other assets

 

4,183

 

4,193

 

 

$41,511

 

$42,434

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current Liabilities

 

 

 

 

Accounts payable and accrued liabilities

 

$8,382

 

$8,442

Estimated liability for taxes on income

 

879

 

1,015

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

 

909

 

850

Dividends payable

 

189

 

184

 

 

10,359

 

10,491

Long-term debt

 

13,286

 

16,036

Postretirement benefits

 

231

 

1,049

Other liabilities

 

2,349

 

2,369

 

 

26,225

 

29,945

Equity

 

15,286

 

12,489

 

 

$41,511

 

$42,434

Liquidity

(Stated in millions)

Components of Liquidity

 

Dec. 31,
2021

 

Sept. 30,
2021

 

Dec. 31,
2020

Cash and short-term investments

 

$3,139

 

$2,942

 

$3,006

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

 

(909)

 

(1,025)

 

(850)

Long-term debt

 

 

 

 

 

 

 

 

(13,286)

 

 

 

 

 

 

 

 

(14,370)

 

 

 

 

 

 

 

 

(16,036)

Net Debt (1)

 

$(11,056)

 

$(12,453)

 

$(13,880)

 

 

 

 

 

 

 

Details of changes in liquidity follow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve

 

Fourth

 

Twelve

 

 

Months

 

Quarter

 

Months

Periods Ended December 31,

 

2021

 

2021

 

2020

 

 

 

 

 

 

 

Net income (loss)

 

$1,928

 

$611

 

$(10,486)

Charges and credits, net of tax (2)

 

(50)

 

(14)

 

11,474

 

 

1,878

 

597

 

$988

Depreciation and amortization (3)

 

2,120

 

532

 

2,566

Stock-based compensation expense

 

324

 

95

 

397

Change in working capital

 

(45)

 

753

 

(833)

US federal tax refund

 

477

 

-

 

-

Other

 

(103)

 

(45)

 

(174)

Cash flow from operations (4)

 

4,651

 

1,932

 

2,944

 

 

 

 

 

 

 

Capital expenditures

 

(1,141)

 

(447)

 

(1,116)

APS investments

 

(474)

 

(169)

 

(303)

Multiclient seismic data capitalized

 

(39)

 

(18)

 

(101)

Free cash flow (5)

 

2,997

 

1,298

 

1,424

 

 

 

 

 

 

 

Dividends paid

 

(699)

 

(175)

 

(1,734)

Proceeds from employee stock plans

 

137

 

-

 

146

Stock repurchase program

 

-

 

-

 

(26)

Business acquisitions and investments, net of cash acquired plus debt assumed

 

(103)

 

(5)

 

(33)

Proceeds from sale of Liberty shares

 

109

 

109

 

-

Proceeds from divestitures

 

-

 

-

 

434

Repayment of finance lease obligations

 

-

 

-

 

(188)

Other

 

(105)

 

(26)

 

(181)

Change in net debt before impact of changes in foreign exchange rates

 

2,336

 

1,201

 

(158)

Impact of changes in foreign exchange rates on net debt

 

488

 

196

 

(595)

Decrease (increase) in Net Debt

 

2,824

 

1,397

 

(753)

Net Debt, beginning of period

 

(13,880)

 

(12,453)

 

(13,127)

Net Debt, end of period

 

$(11,056)

 

$(11,056)

 

$(13,880)

(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)

See section entitled “Charges & Credits” for details.

(3)

Includes depreciation of property, plant and equipment and amortization of intangible assets, multiclient seismic data costs, and APS investments.

(4)

Includes severance payments of $248 million and $22 million during the twelve months and fourth quarter ended December 31, 2021, respectively; and $843 million and $144 million during the twelve months and fourth quarter ended December 31, 2020, respectively.

(5)

“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 Schlumberger’s 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 a substitute for or superior to, cash flow from operations.

Charges & Credits

In addition to financial results determined in accordance with US generally accepted accounting principles (GAAP), this fourth-quarter and full-year 2021 earnings release also includes non-GAAP financial measures (as defined under the SEC’s Regulation G). In addition to the non-GAAP financial measures discussed under “Liquidity”, net income (loss), excluding charges & credits, as well as measures derived from it (including diluted EPS, excluding charges & credits; Schlumberger net income (loss), excluding charges & credits; effective tax rate, excluding charges & credits; and adjusted EBITDA) are non-GAAP financial measures. Management believes that the exclusion of charges & credits from these financial measures enables it to evaluate more effectively Schlumberger’s operations period over period and to identify operating trends that could otherwise be masked by the excluded items. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of certain of these non-GAAP measures to the comparable GAAP measures. For a reconciliation of adjusted EBITDA to the comparable GAAP measure, please refer to the section titled “Supplemental Information” (Question 9).

(Stated in millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter 2021

 

 

 

 

 

 

 

 

 

Pretax

 

 

 

 

 

 

 

 

Tax

 

 

 

 

 

 

 

 

Noncont.
Interests

 

 

 

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

Diluted
EPS

Schlumberger net income (GAAP basis)

 

$755

 

$144

 

$10

 

$601

 

$0.42

Gain on sale of Liberty shares (1)

 

$(28)

 

$(4)

 

$0

 

$(24)

 

$(0.02)

Early repayment of bonds (2)

 

10

 

-

 

-

 

10

 

0.01

Schlumberger net income, excluding charges & credits

 

$737

 

$140

 

$10

 

$587

 

$0.41

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2021

 

 

Pretax

 

Tax

 

Noncont.
Interests

 

Net

 

Diluted
EPS

Schlumberger net income (GAAP basis)

 

$691

 

$129

 

$12

 

$550

 

$0.39

Unrealized gain on marketable securities (1)

 

(47)

 

(11)

 

-

 

(36)

 

(0.03)

Schlumberger net income, excluding charges & credits

 

$644

 

$118

 

$12

 

$514

 

$0.36

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter 2020

 

 

Pretax

 

Tax

 

Noncont.
Interests

 

Net

 

Diluted
EPS

Schlumberger net income (GAAP basis)

 

$471

 

$89

 

$8

 

$374

 

$0.27

Gain on sale of OneStim (3)

 

(104)

 

(11)

 

-

 

(93)

 

(0.07)

Unrealized gain on marketable securities (1)

 

(39)

 

(9)

 

-

 

(30)

 

(0.02)

Other

 

62

 

4

 

-

 

58

 

0.04

Schlumberger net income, excluding charges & credits

 

$390

 

$73

 

$8

 

$309

 

$0.22

 

(Stated in millions, except per share amounts)

 

 

Twelve Months 2021

 

 

Pretax

 

Tax

 

Noncont.
Interests

 

Net

 

Diluted
EPS

Schlumberger net income (GAAP basis)

 

 

 

 

 

 

 

 

$2,374

 

$446

 

$47

 

$1,881

 

$1.32

Fourth quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of Liberty Shares (1)

 

(28)

 

(4)

 

-

 

(24)

 

(0.02)

Early repayment of bonds (2)

 

10

 

-

 

-

 

10

 

0.01

Third quarter

 

 

 

 

 

 

 

 

 

 

Unrealized gain on marketable securities (1)

 

(47)

 

(11)

 

-

 

(36)

 

(0.03)

Schlumberger net income, excluding charges & credits

 

$2,309

 

$431

 

$47

 

$1,831

 

$1.28

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months 2020

 

 

Pretax

 

Tax

 

Noncont.
Interests

 

Net

 

Diluted
EPS

Schlumberger net loss (GAAP basis)

 

$(11,298)

 

$(812)

 

$32

 

$(10,518)

 

$(7.57)

Fourth quarter

 

 

 

 

 

 

 

 

 

 

Gain on sale of OneStim (3)

 

(104)

 

(11)

 

-

 

(93)

 

(0.07)

Unrealized gain on marketable securities (1)

 

(39)

 

(9)

 

-

 

(30)

 

(0.02)

Other

 

62

 

4

 

-

 

58

 

0.04

Third quarter

 

 

 

 

 

 

 

 

 

 

Facility exit charges

 

254

 

39

 

-

 

215

 

0.15

Workforce reductions

 

63

 

-

 

-

 

63

 

0.05

Other

 

33

 

1

 

-

 

32

 

0.02

Second quarter

 

 

 

 

 

 

 

 

 

 

Workforce reductions

 

1,021

 

71

 

-

 

950

 

0.68

Asset Performance Solutions investments

 

730

 

15

 

-

 

715

 

0.51

Fixed asset impairments

 

666

 

52

 

-

 

614

 

0.44

Inventory write-downs

 

603

 

49

 

 

 

554

 

0.40

Right-of-use asset impairments

 

311

 

67

 

-

 

244

 

0.18

Costs associated with exiting certain activities

 

205

 

(25)

 

-

 

230

 

0.17

Multiclient seismic data impairment

 

156

 

2

 

-

 

154

 

0.11

Repurchase of bonds

 

40

 

2

 

-

 

38

 

0.03

Postretirement benefits curtailment gain

 

(69)

 

(16)

 

-

 

(53)

 

(0.04)

Other

 

60

 

4

 

-

 

56

 

0.04

First quarter

 

 

 

 

 

 

 

 

 

 

Goodwill

 

3,070

 

-

 

-

 

3,070

 

2.21

Intangible assets impairments

 

3,321

 

815

 

-

 

2,506

 

1.80

Asset Performance Solutions investments

 

1,264

 

(4)

 

-

 

1,268

 

0.91

North America pressure pumping impairment

 

587

 

133

 

-

 

454

 

0.33

Workforce reductions

 

202

 

7

 

-

 

195

 

0.14

Other

 

79

 

9

 

-

 

70

 

0.05

Valuation allowance

 

-

 

(164)

 

-

 

164

 

0.12

Schlumberger net income, excluding charges & credits

 

$1,217

 

$229

 

$32

 

$956

 

$0.68

 

(1)

Classified in Interest & other income in the Condensed Consolidated Statement of Income (Loss)

(2)

Classified in Interest in the Condensed Consolidated Statement of Income (Loss)

(3)

Classified in Gain on sales of businesses in the Condensed Consolidated Statement of Income (Loss)

Unless otherwise noted, all Charges & Credits are classified in Impairments & other in the Condensed Consolidated Statement of Income (Loss).

DIVISIONS

(Stated in millions)

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

Dec. 31, 2021

 

Sept. 30, 2021

 

Dec. 31, 2020

 

 

Revenue

 

 

 

 

Income
Before
Taxes

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

Income
Before
Taxes

 

 

 

 

 

 

 

 

Revenue

 

Income
Before
Taxes

Digital & Integration

 

$889

 

 

 

 

$335

 

$812

 

$284

 

$832

 

 

 

 

 

$269

Reservoir Performance

 

1,287

 

 

 

 

200

 

1,192

 

190

 

1,247

 

95

Well Construction

 

2,388

 

 

 

 

368

 

2,273

 

345

 

1,868

 

183

Production Systems

 

1,765

 

 

 

 

159

 

1,674

 

166

 

1,649

 

155

Eliminations & other

 

(104)

 

 

 

 

(76)

 

(104)

 

(77)

 

(64)

 

(48)

Pretax segment operating income

 

 

 

 

 

 

986

 

 

 

908

 

 

 

654

Corporate & other

 

 

 

 

 

 

(140)

 

 

 

(145)

 

 

 

(132)

Interest income(1)

 

 

 

 

 

 

14

 

 

 

8

 

 

 

5

Interest expense(1)

 

 

 

 

 

 

(123)

 

 

 

(127)

 

 

 

(137)

Charges & credits(2)

 

 

 

 

 

 

18

 

 

 

47

 

 

 

81

 

 

$6,225

 

 

 

 

$755

 

$5,847

 

$691

 

$5,532

 

$471

 

(Stated in millions)

 

 

Full Year 2021

 

 

Revenue

 

Income
Before
Taxes

 

Depreciation
and
Amortization 
(3)

 

Net
Interest
Expense 
(4)

 

Adjusted
EBITDA
 (5)

 

Capital
Investments 
(6)

Digital & Integration

 

 

 

 

 

 

 

 

$3,290

 

 

 

 

 

 

 

 

$1,141

 

 

 

 

 

 

 

 

$446

 

$13

 

$1,600

 

$516

Reservoir Performance

 

4,599

 

648

 

415

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

1,063

 

 

 

 

 

 

 

 

348

Well Construction

 

8,706

 

1,195

 

537

 

1

 

1,733

 

424

Production Systems

 

6,710

 

634

 

302

 

-

 

936

 

267

Eliminations & other

 

(376)

 

(253)

 

269

 

(1)

 

15

 

99

 

 

 

 

3,365

 

1,969

 

13

 

5,347

 

1,654

Corporate & Other

 

 

 

(573)

 

151

 

 

 

(422)

 

 

Interest income (1)

 

 

 

31

 

 

 

 

 

 

 

 

Interest expense (1)

 

 

 

(514)

 

 

 

 

 

 

 

 

Charges & credits (2)

 

 

 

65

 

 

 

 

 

 

 

 

 

 

$22,929

 

$2,374

 

$2,120

 

$13

 

$4,925

 

$1,654

 

(Stated in millions)

 

 

Full Year 2020

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

Income (Loss)
Before
Taxes

 

 

 

 

 

 

 

 

Depreciation
and
Amortization 
(3)

 

Net
Interest
Expense 
(4)

 

Adjusted
EBITDA
 (5)

 

Capital
Investments
 (6)

Digital & Integration

 

$3,067

 

$727

 

$615

 

 

 

 

 

 

 

 

$13

 

 

 

 

 

 

 

 

$1,355

 

 

 

 

 

 

 

 

$413

Reservoir Performance

 

5,602

 

353

 

549

 

11

 

913

 

384

Well Construction

 

8,614

 

870

 

580

 

1

 

1,451

 

420

Production Systems

 

6,650

 

623

 

338

 

-

 

961

 

240

Eliminations & other

 

(332)

 

(172)

 

276

 

2

 

106

 

63

 

 

 

 

2,401

 

2,358

 

27

 

4,786

 

1,520

Corporate & Other