UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☑
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2025
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file No.: 1-4601
Schlumberger N.V. (Schlumberger Limited)
(Exact name of registrant as specified in its charter)
Curaçao
52-0684746
(State or other jurisdiction ofincorporation or organization)
(IRS EmployerIdentification No.)
42 rue Saint-Dominique
Paris, France
75007
5599 San Felipe
Houston, Texas, United States of America
77056
62 Buckingham Gate
London, United Kingdom
SW1E 6AJ
Parkstraat 83
The Hague, The Netherlands
2514 JG
(Addresses of principal executive offices)
(Zip Codes)
Registrant’s telephone number in the United States, including area code, is: (713) 513-2000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
common stock, par value $0.01 per share
SLB
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Outstanding at June 30, 2025
COMMON STOCK, $0.01 PAR VALUE PER SHARE
1,351,248,823
SCHLUMBERGER LIMITED
Second Quarter 2025 Form 10-Q
Table of Contents
Page
PART I
Financial Information
Item 1.
Financial Statements
3
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
19
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
24
Item 4.
Controls and Procedures
PART II
Other Information
Legal Proceedings
26
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Item 5.
Item 6.
Exhibits
28
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(Stated in millions, except per share amounts)
Second Quarter
Six Months
2025
2024
Revenue
Services
$
5,327
5,902
10,692
11,578
Product sales
3,219
3,237
6,343
6,268
Total Revenue
8,546
9,139
17,035
17,846
Interest & other income
252
85
330
169
Expenses
Cost of services
4,227
4,523
8,480
8,939
Cost of sales
2,707
2,739
5,335
5,331
Research & engineering
180
188
352
369
General & administrative
87
94
184
215
Restructuring & other
135
111
293
Merger & integration
35
16
84
27
Interest
142
132
289
245
Income before taxes
1,285
1,421
2,348
2,778
Tax expense
237
276
471
535
Net income
1,048
1,145
1,877
2,243
Net income attributable to noncontrolling interests
34
33
66
63
Net income attributable to SLB
1,014
1,112
1,811
2,180
Basic income per share of SLB
0.75
0.78
1.33
1.53
Diluted income per share of SLB
0.74
0.77
1.32
1.51
Average shares outstanding:
Basic
1,352
1,428
1,359
1,429
Assuming dilution
1,366
1,443
1,373
1,445
See Notes to Consolidated Financial Statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Stated in millions)
Currency translation adjustments
Unrealized net change arising during the period
54
30
226
53
Cash flow hedges
Net gain (loss) on cash flow hedges
(26
)
(39
(43
Reclassification to net income of net realized loss (gain)
(5
6
-
5
Pension and other postretirement benefit plans
Amortization to net income of net actuarial gain (loss)
8
(1
Amortization to net income of net prior service credit
(3
(6
(11
Income taxes on pension and other postretirement benefit plans
2
Other
(4
11
1
Comprehensive income
1,129
1,147
2,084
2,250
Comprehensive income attributable to noncontrolling interests
Comprehensive income attributable to SLB
1,095
1,114
2,018
2,187
4
CONSOLIDATED BALANCE SHEET
Jun. 30,
Dec. 31,
ASSETS
Current Assets
Cash
3,236
3,544
Short-term investments
511
1,125
Receivables less allowance for doubtful accounts (2025 - $334; 2024 - $325)
8,586
8,011
Inventories
4,740
4,375
Other current assets
1,380
1,515
18,453
18,570
Investments in Affiliated Companies
1,676
1,635
Fixed Assets less accumulated depreciation
7,399
7,359
Goodwill
14,658
14,593
Intangible Assets
2,893
3,012
Other Assets
3,690
3,766
48,769
48,935
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities
9,993
10,375
Estimated liability for taxes on income
833
982
Short-term borrowings and current portion of long-term debt
2,807
1,051
Dividends payable
402
403
14,035
12,811
Long-term Debt
10,891
11,023
Postretirement Benefits
502
512
Deferred Taxes
12
67
Other Liabilities
1,778
2,172
27,218
26,585
Equity
Common stock
11,354
11,458
Treasury stock
(3,742
(1,773
Retained earnings
17,433
16,395
Accumulated other comprehensive loss
(4,743
(4,950
SLB stockholders’ equity
20,302
21,130
Noncontrolling interests
1,249
1,220
21,551
22,350
CONSOLIDATED STATEMENT OF CASH FLOWS
Six Months Ended June 30,
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of APS project
(149
Impairment of equity method investment
69
Depreciation and amortization (1)
1,273
1,231
Deferred taxes
(60
(29
Stock-based compensation expense
168
173
Earnings of equity method investments, less dividends received
(47
Change in assets and liabilities: (2)
Increase in receivables
(480
(755
Increase in inventories
(288
Decrease in other current assets
86
107
Increase in other assets
(44
Decrease in accounts payable and accrued liabilities
(557
(942
Decrease in estimated liability for taxes on income
(162
(167
Increase in other liabilities
73
43
25
NET CASH PROVIDED BY OPERATING ACTIVITIES
1,802
1,763
Cash flows from investing activities:
Capital expenditures
(769
(862
APS investments
(225
(256
Exploration data costs capitalized
(83
(91
Business acquisitions and investments, net of cash acquired
(505
Sales of short-term investments, net
632
47
Purchase of Blue Chip Swap securities
(123
(76
Proceeds from sale of Blue Chip securities
102
51
Proceed from sale of APS investment
316
48
NET CASH USED IN INVESTING ACTIVITIES
(186
(1,644
Cash flows from financing activities:
Dividends paid
(773
(751
Proceeds from employee stock purchase plan
105
100
Proceeds from exercise of stock options
20
Taxes paid on net settled stock-based compensation awards
(55
(78
Stock repurchase program
(2,300
(735
Proceeds from issuance of long-term debt
1,081
1,849
Repayment of long-term debt
(426
Net decrease in short-term borrowings
(28
(19
(27
NET CASH USED IN FINANCING ACTIVITIES
(1,989
(46
Net (decrease) increase in cash before translation effect
(373
Translation effect on cash
65
(20
Cash, beginning of period
2,900
Cash, end of period
2,953
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
Accumulated
Common Stock
Retained
Comprehensive
Noncontrolling
January 1, 2025 – June 30, 2025
Issued
In Treasury
Earnings
Loss
Interests
Total
Balance, January 1, 2025
Changes in fair value of cash flow hedges
9
Shares sold to optionees, less shares exchanged
(2
10
Vesting of restricted stock, net of taxes withheld
(226
171
Employee stock purchase plan
149
Dividends declared ($0.57 per share)
Dividends paid to noncontrolling interests
18
Balance, June 30, 2025
January 1, 2024 – June 30, 2024
Balance, January 1, 2024
11,624
(678
13,497
(4,254
1,170
21,359
(38
(9
29
(351
273
(36
136
Dividends declared ($0.55 per share)
(787
(13
(10
Balance, June 30, 2024
11,401
(973
14,890
(4,247
1,209
22,280
April 1, 2025 – June 30, 2025
Balance, April 1, 2025
10,827
(3,292
16,804
(4,824
1,233
20,748
21
7
460
(460
77
Dividends declared ($0.285 per share)
(385
(22
April 1, 2024 – June 30, 2024
Balance, April 1, 2024
11,344
(531
14,172
(4,249
1,187
21,923
13
(465
Dividends declared ($0.275 per share)
(394
SHARES OF COMMON STOCK
Shares
Outstanding
1,439
1,401
Vesting of restricted stock
Shares issued under employee stock purchase plan
(57
(88
1,351
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying unaudited consolidated financial statements of Schlumberger Limited and its subsidiaries (“SLB”) have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of SLB management, all adjustments considered necessary for a fair statement have been included in the accompanying unaudited financial statements. All intercompany transactions and balances have been eliminated in consolidation. Operating results for the three-month period ended June 30, 2025 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025. The December 31, 2024 balance sheet information has been derived from the SLB 2024 audited financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the SLB Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on January 22, 2025.
ChampionX Transaction
On July 16, 2025, SLB completed the acquisition of ChampionX Corporation ("ChampionX") in an all-stock transaction. ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. Under the terms of the agreement, ChampionX shareholders received 0.735 shares of SLB common stock in exchange for each ChampionX share. At the closing of the transaction ChampionX shareholders received approximately 141 million shares of SLB common stock valued at $4.9 billion. Excluding its Drilling Technology business, which was disposed of concurrently with the closing of the transaction, ChampionX recorded revenue of approximately $3.4 billion in 2024 and $1.7 billion during the six months ended June 30, 2025.
2. Charges and Credits
Second quarter
During the second quarter of 2025, SLB recorded a $69 million impairment charge relating to an equity method investment that was determined to be other-than-temporarily impaired. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
During the second quarter of 2025, SLB recorded a charge of $66 million relating to workforce reductions to align its resources with activity levels. This charge is classified in Restructuring & other in the Consolidated Statement of Income. SLB may record additional charges related to workforce reductions in 2025 as it continues to align its resources with activity levels.
During the second quarter of 2025, in connection with the ChampionX transaction and the October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $35 million of charges related to merger and integration-related costs. These costs are classified in Merger & integration in the Consolidated Statement of Income.
During the second quarter of 2025, SLB completed the sale of its interest in the Palliser APS project in Canada in exchange for net cash proceeds of $338 million, of which $22 million were received in the third quarter of 2025. SLB recorded a gain of $149 million as a result of this transaction. This gain is classified in Interest & other income in the Consolidated Statement of Income.
First quarter
During the first quarter of 2025, SLB recorded a $158 million charge relating to workforce reductions to realign and optimize its support and service delivery structure. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
During the first quarter of 2025, in connection with the ChampionX transaction and the October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $49 million of charges related to merger and integration-related costs. These costs are classified in Merger & integration in the Consolidated Statement of Income.
Pretax Charge
Tax Benefit
(Credit)
(Expense)
Net
First quarter:
Workforce reductions
158
148
Merger and integration
49
44
Second quarter:
57
Gain on sale of Palliser APS project
(145
228
194
During the second quarter of 2024, SLB recorded a charge of $111 million related to workforce reductions to realign and optimize its support and service delivery structure. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
In connection with SLB's October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $31 million of charges during the second quarter of 2024 consisting of: $15 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventories to its estimated fair value and $16 million of other merger and integration-related costs. $15 million of these costs are classified in Cost of Sales in the Consolidated Statement of Income, with the remaining $16 million classified in Merger & integration.
In connection with SLB's acquisition of the Aker Solutions subsea business, SLB recorded $25 million of charges during the first quarter of 2024 consisting of: $14 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventories to its estimated fair value and $11 million of other merger and integration-related costs. $14 million of these costs are classified in Cost of Sales in the Consolidated Statement of Income with the remaining $11 million classified in Merger & integration.
14
17
31
167
126
3. Earnings per Share
The following is a reconciliation from basic earnings per share of SLB to diluted earnings per share of SLB:
Net IncomeAttributableto SLB
Average SharesOutstanding
Earnings perShare
Assumed exercise of stock options
Unvested restricted stock
Diluted
15
The number of outstanding options to purchase shares of SLB common stock that were not included in the computation of diluted income per share, because to do so would have had an antidilutive effect, was as follows:
Employee stock options
4. Inventories
A summary of inventories, which are stated at the lower of average cost or net realizable value, is as follows:
Raw materials & field materials
2,553
2,387
Work in progress
914
786
Finished goods
1,202
5. Fixed Assets
Fixed assets consist of the following:
Property, plant & equipment
30,332
29,573
Less: Accumulated depreciation
22,933
22,214
Depreciation expense relating to fixed assets was as follows:
408
384
805
761
6. Intangible Assets
Intangible assets consist of the following:
Jun. 30, 2025
Dec. 31, 2024
Gross
Net Book
Book Value
Amortization
Value
Customer relationships
1,889
845
1,044
1,887
799
1,088
Technology/technical know-how
1,619
923
696
1,588
872
716
Tradenames
795
317
478
299
496
1,621
946
675
1,604
892
712
5,924
3,031
5,874
2,862
Amortization expense charged to income was as follows:
82
164
163
Based on the carrying value of intangible assets at June 30, 2025, amortization expense for the subsequent five years is estimated to be: remaining two quarters of 2025—$162 million; 2026—$316 million; 2027—$312 million; 2028—$302 million; 2029—$289 million; and 2030—$284 million.
7. Long-term Debt
Long-term Debt consists of the following:
3.90% Senior Notes due 2028
1,481
1,478
2.65% Senior Notes due 2030
1,246
1,250
1.375% Guaranteed Notes due 2026
1,171
1,040
2.00% Guaranteed Notes due 2032
1,166
1,034
0.25% Notes due 2027
1,054
936
0.50% Notes due 2031
1,053
935
4.30% Senior Notes due 2029
848
4.50% Senior Notes due 2028
497
5.00% Senior Notes due 2027
495
4.85% Senior Notes due 2033
494
498
5.00% Senior Notes due 2029
493
5.00% Senior Notes due 2034
486
489
7.00% Notes due 2038
197
5.95% Notes due 2041
5.13% Notes due 2043
98
1.00% Guaranteed Notes due 2026
624
The estimated fair value of SLB’s Long-term Debt, based on quoted market prices at June 30, 2025 and December 31, 2024, was $10.5 billion and $10.4 billion, respectively.
At June 30, 2025, SLB had committed credit facility agreements with commercial banks aggregating $5.0 billion, of which $2.0 billion matures in February 2028 and $3.0 billion matures in December 2029. These committed facilities support commercial paper programs in the United States and Europe. There were no borrowings under these facilities at June 30, 2025 and December 31, 2024.
Commercial paper borrowings are classified as long-term debt to the extent they are backed up by available and unused committed credit facilities maturing in more than one year and to the extent it is SLB’s intent to maintain these obligations for longer than one year. Borrowings under the commercial paper programs at June 30, 2025, were $1.1 billion, all of which were classified in Short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheet. There were no borrowings under the commercial paper programs at December 31, 2024.
Schlumberger Limited fully and unconditionally guarantees the securities issued by certain of its subsidiaries, including securities issued by Schlumberger Investment S.A. and Schlumberger Finance Canada Ltd., both indirect wholly-owned subsidiaries of Schlumberger Limited.
8. Derivative Instruments and Hedging Activities
SLB’s functional currency is primarily the US dollar. However, outside the United States, a significant portion of SLB’s expenses is incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which SLB conducts business, the US dollar-reported expenses will increase (decrease).
Changes in foreign currency exchange rates expose SLB to risks on future cash flows relating to its fixed rate debt denominated in currencies other than the functional currency. SLB uses cross-currency interest rate swaps to provide a hedge against these risks. These contracts are accounted for as cash flow hedges, with the fair value of the derivative recorded on the Consolidated Balance Sheet and in Accumulated other comprehensive loss. Amounts recorded in Accumulated other comprehensive loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings.
Details regarding SLB’s outstanding cross-currency interest rate swaps as of June 30, 2025, were as follows:
A summary of the amounts included in the Consolidated Balance Sheet relating to cross currency interest rate swaps was as follows:
37
212
183
The fair values were determined using a model with inputs that are observable in the market or can be derived or corroborated by observable data.
SLB is exposed to risks on future cash flows to the extent that the local currency is not the functional currency and expenses denominated in local currency are not equal to revenues denominated in local currency. SLB uses foreign currency forward contracts to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges.
SLB is also exposed to changes in the fair value of assets and liabilities denominated in currencies other than the functional currency. While SLB uses foreign currency forward contracts to economically hedge this exposure as it relates to certain currencies, these contracts are not designated as hedges for accounting purposes. Instead, the fair value of the derivative is recorded on the Consolidated
Balance Sheet and changes in the fair value are recognized in the Consolidated Statement of Income, as are changes in the fair value of the hedged item.
Foreign currency forward contracts were outstanding for the US dollar equivalent of $5.1 billion and $5.5 billion in various foreign currencies as of June 30, 2025 and December 31, 2024, respectively.
Other than the previously mentioned cross-currency interest rate swaps, the fair value of the other outstanding derivatives was not material as of June 30, 2025 and December 31, 2024.
The effect of derivative instruments designated as cash flow hedges, and those not designated as hedges, on the Consolidated Statement of Income was as follows:
Gain (Loss) Recognized in Income
Consolidated Statement of Income Classification
Derivatives designated as cash flow hedges:
Cross-currency interest rate swaps
(52
467
(146
Cost of services/sales
(18
(37
Interest expense
Commodity contracts
(7
Foreign currency forward contracts
(80
429
(196
Derivatives not designated as hedges:
(17
42
23
SLB has issued credit default swaps (“CDSs”) to certain third-party financial institutions that have an aggregate notional amount outstanding of approximately $1.0 billion as of June 30, 2025. The CDSs relate to borrowings provided by the financial institutions to SLB’s primary customer in Mexico. The borrowings were used by this customer to pay certain of SLB’s outstanding receivables. Approximately $0.2 billion of the outstanding CDSs reduces on a monthly basis over its remaining 8-month term while the remaining $0.8 billion reduces on a monthly basis over its remaining 12-month term. The fair value of these derivative liabilities was not material at June 30, 2025.
9. Contingencies
SLB is party to various legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote. However, litigation is inherently uncertain, and it is not possible to predict the ultimate disposition of any of these proceedings.
10. Segment Information
Financial information by segment is as follows:
Second Quarter 2025
Depreciation
Income
and
Capital
Before Taxes
Investments (5)
Digital & Integration
995
327
150
Reservoir Performance
1,691
314
124
Well Construction
2,963
551
118
Production Systems
3,036
499
91
113
Eliminations & other
(139
(107
Corporate & other (1)
(169
45
Interest income (2)
Interest expense (3)
Charges and credits (4)
(21
633
520
Second Quarter 2024
1,050
325
170
1,819
376
101
138
3,411
742
162
198
3,025
473
83
99
(166
(62
71
(191
(129
(142
631
660
Six Months 2025
2,001
315
311
3,391
596
211
261
5,940
1,140
333
247
5,974
973
182
204
(271
(202
144
(347
88
(283
(228
1,077
Six Months 2024
2,003
579
318
348
715
199
253
6,779
1,432
390
5,843
873
165
177
(323
(97
143
41
(382
(238
Total assets by segment are as follows:
2,708
3,117
4,088
3,802
6,754
6,741
7,741
7,116
Goodwill and intangibles
17,551
17,605
All other assets
9,927
10,554
Segment assets consist of receivables, inventories, fixed assets, exploration data costs capitalized, and APS investments.
Revenue by geographic area was as follows:
North America
1,655
1,644
3,373
3,242
Latin America
1,492
1,742
2,986
3,395
Europe & Africa (1)
2,369
2,442
4,604
4,764
Middle East & Asia
3,268
5,983
6,348
89
97
North America and International revenue disaggregated by segment was as follows:
North
America
International
223
769
1,541
2,394
789
(100
6,847
291
757
134
1,684
592
2,768
640
2,378
(135
7,452
1,486
290
3,097
4,775
1,557
4,410
(40
(195
13,573
527
1,474
264
3,276
1,196
5,475
108
1,286
4,543
(31
(261
14,507
Significant segment expenses, which represent the difference between segment revenue and pretax segment income, consist of the following:
Digital &
Reservoir
Well
Production
Integration
Performance
Construction
Systems
Compensation
407
235
Cost of products, materials, and supplies
279
818
1,882
Depreciation and amortization
Allocations
240
139
217
421
593
190
668
1,377
2,412
2,537
210
422
664
267
310
899
1,907
166
133
444
692
725
2,669
2,552
404
814
1,195
476
587
1,620
3,702
206
490
443
856
1,162
365
1,368
2,795
4,800
5,001
431
1,318
561
608
1,826
3,668
328
503
262
880
1,382
1,424
2,829
5,347
4,970
Other segment expenses include transportation, mobilization, lease, professional fees, and other costs.
Revenue in excess of billings related to contracts where revenue is recognized over time was $0.5 billion at June 30, 2025 and $0.5 billion at December 31, 2024. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.
Total backlog was $5.7 billion at June 30, 2025, of which approximately 55% is expected to be recognized as revenue over the next 12 months.
Billings and cash collections in excess of revenue was $2.2 billion at June 30, 2025 and $2.0 billion at December 31, 2024. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Second Quarter 2025 Compared to First Quarter 2025
First Quarter 2025
1,006
306
1,700
282
2,977
589
2,938
475
(131
(96
1,584
1,556
(178
36
(144
(207
8,490
1,063
Second-quarter 2025 revenue of $8.5 billion increased 1% compared to the first quarter of 2025. SLB’s broad exposure across geographies and business lines enabled it to effectively overcome the impact of certain regional activity slowdowns. As a result, international revenue increased 2% sequentially, driven by robust growth in some parts of the Middle East, Asia, Europe and North Africa, which more than offset declines in certain key markets. Revenue in North America decreased 4% sequentially as a result of lower Asset Performance Solutions (“APS”) revenue and reduced activity due to the Canadian seasonal spring break.
Despite pockets of activity adjustments in key markets, the industry has shown that it can operate through uncertainty without a significant drop in upstream spending. This has been driven by the combination of capital discipline and the need for energy security.
Assuming commodity prices stay range bound, SLB remain constructive for the second half of the year. This is supported by its position in key markets, the depth of its diversified portfolio, and its increased exposure to the growing production and recovery market through the acquisition of ChampionX, which closed on July 16, 2025 (see Note 1 to the Consolidated Financial Statements). SLB will also continue to manage costs in line with market conditions as it remains focused on delivering peer-leading margins.
Digital & Integration revenue of $995 million decreased 1% sequentially primarily due to lower APS revenue in Canada. Digital revenue remained steady, with double-digit sequential growth from the combined effects of platforms, applications and digital operations, offset by reduced sales of exploration data following a strong first quarter.
Digital & Integration pretax operating margin of 33% expanded 240 basis points (“bps”) sequentially, driven by greater digital adoption and efficiency gains.
Reservoir Performance revenue of $1.7 billion declined 1% sequentially due to a slowdown in evaluation and stimulation activity across international markets, partially offset by strong intervention activity.
Reservoir Performance pretax operating margin of 19% increased 203 bps sequentially as a result of the higher intervention activity and the absence of startup costs that impacted the first quarter.
Well Construction revenue of $3.0 billion was essentially flat sequentially. Higher revenue in Iraq, the United Arab Emirates, offshore Mexico, North Africa and Nigeria were offset by declines in drilling activity in Namibia, North America land markets, Argentina and Saudi Arabia.
Well Construction pretax operating margin of 19% declined 119 bps sequentially primarily due to an unfavorable geography mix in the international markets.
Production Systems revenue of $3.0 billion increased 3% sequentially primarily due to higher sales of artificial lift systems and midstream production solutions.
Production Systems sequential pretax operating margin remained steady at 16% primarily due to continued growth and a favorable activity mix.
Six Months 2025 Compared to Six Months 2024
3,140
3,502
Six-month 2025 revenue of $17.0 billion decreased 5% year on year primarily due to activity reductions in Saudi Arabia, Mexico, and certain key offshore markets. As a result, international revenue declined by 6% year on year. North America revenue increased by 4% primarily due to growth in data center infrastructure solutions.
Digital & Integration revenue of $2.0 billion was flat year on year. Revenue growth from platform, applications and digital operations of 10% was offset by lower sales exploration data and lower APS revenue.
Digital & Integration pretax operating margin of 32% increased 272 bps year on year driven by greater digital adoption and efficiency gains.
Reservoir Performance revenue of $3.4 billion decreased 4% year on year primarily due to a slowdown in evaluation and stimulation activity in the international markets.
Reservoir Performance pretax operating margin of 18% contracted 259 bps year on year due to the lower evaluation and stimulation activity.
Well Construction revenue of $5.9 billion declined 12% year on year driven by a broad reduction in drilling activity both internationally, mainly in Saudi Arabia, Mexico and offshore Africa, and in North America.
Well Construction pretax operating margin of 19% declined 193 bps year on year driven by the widespread activity reductions.
Production Systems revenue of $6.0 billion increased 2% year on year driven by strong demand for data center infrastructure solutions, artificial lift, completions, and surface production systems.
Production Systems pretax operating margin of 16% expanded 136 bps year on year driven primarily by a favorable activity mix and execution efficiency.
Interest & Other Income
Interest & other income consisted of the following:
First Quarter
Earnings of equity method investments
72
114
93
Interest income
76
78
Research & engineering and General & administrative expenses, as a percentage of Revenue were as follows:
Second
First
Quarter
2.1
%
2.0
1.0
1.1
1.2
The effective tax rate was 18% for the second quarter of 2025 as compared to 19% for the same period of 2024. The effective tax rate for the first six months of 2025 was 20% as compared to 19% for the same period of 2024.
Charges and Credits
SLB recorded charges and credits during the first six months of 2025 and 2024. These charges and credits, which are summarized below, are more fully described in Note 2 to the Consolidated Financial Statements.
2025:
2024:
Liquidity and Capital Resources
Details of the components of liquidity as well as changes in liquidity are as follows:
Components of Liquidity:
(2,807
(1,033
(1,051
Long-term debt
(10,891
(12,156
(11,023
Net debt (1)
(9,951
(9,186
(7,405
22
Six Months Ended Jun. 30,
Changes in Liquidity:
Depreciation and amortization (2)
Increase in working capital
(1,401
(1,906
39
Cash flow from operations
Free cash flow (3)
554
Proceeds from employee stock plans
Proceeds from stock options
Proceeds from sale of Palliser APS project
Increase in net debt before impact of changes in foreign exchange rates
(2,051
(1,381
Impact of changes in foreign exchange rates on net debt
(495
Increase in net debt
(2,546
(1,210
Net debt, beginning of period (1)
(7,976
Net debt, end of period (1)
Key liquidity events during the first six months of 2025 and 2024 included:
As of June 30, 2025, SLB had $3.7 billion of cash and short-term investments on hand and committed debt facility agreements with commercial banks aggregating $5.0 billion, all of which was available. SLB believes these amounts are sufficient to meet future business requirements for at least the next 12 months and beyond.
SLB has a global footprint in more than 100 countries. As of June 30, 2025, only two of those countries individually accounted for greater than 5% of SLB’s net receivable balance. Only one of these countries, the United States, represented greater than 10% of such receivables. As of June 30, 2025, Mexico represented 9% of SLB's net accounts receivable balance see Note 8 to the Consolidated Financial Statements. While SLB has recently experienced delays in payment from its primary customer in Mexico, these receivables are not in dispute and SLB has not historically had any material write-offs due to uncollectible accounts receivable relating to this customer.
FORWARD-LOOKING STATEMENTS
This second-quarter 2025 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 statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “outlook,” “expectations,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,” “should,” “could,” “would,” “will,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about SLB’s financial and performance targets and other forecasts or expectations regarding, or dependent on, its business outlook; growth for SLB as a whole and for each of its Divisions (and for specified business lines, geographic areas, or technologies within each Division); the benefits of the ChampionX acquisition, including the ability of SLB to integrate the ChampionX business successfully and to achieve anticipated synergies and value creation from the acquisition; oil and natural gas demand and production growth; oil and natural gas prices; forecasts or expectations regarding energy transition and global climate change; improvements in operating procedures and technology; capital expenditures by SLB and the oil and gas industry; the business strategies of SLB, including digital and “fit for basin,” as well as the strategies of SLB’s customers; SLB’s capital allocation plans, including dividend plans and share repurchase programs; SLB’s APS projects, joint ventures, and other alliances; the impact of ongoing or escalating conflicts on global energy supply; access to raw materials; future global economic and geopolitical conditions; future liquidity, including free cash flow; 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 and geopolitical conditions; changes in exploration and production spending by SLB’s customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of SLB’s customers and suppliers; SLB’s inability to achieve its financial and performance targets and other forecasts and expectations; SLB’s inability to achieve net-zero carbon emissions goals or interim emissions reduction goals; general economic, geopolitical and business conditions in key regions of the world; foreign currency risk; inflation; changes in monetary policy by governments; tariffs; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays or cancellations; challenges in SLB’s supply chain; production declines; the extent of future charges; SLB’s inability to recognize efficiencies and other intended benefits from its business strategies and initiatives, such as digital or new energy, as well as its cost reduction strategies; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, and climate-related initiatives; the inability of technology to meet new challenges in exploration; the competitiveness of alternative energy sources or product substitutes; and other risks and uncertainties detailed in this Form 10-Q and our most recent Form 10-K and Forms 8-K filed with or furnished to the SEC.
If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this Form 10-Q regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Statements in this Form 10-Q are made as of July 24, 2025, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
For quantitative and qualitative disclosures about market risk affecting SLB, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” of the SLB Annual Report on Form 10-K for the fiscal year ended December 31, 2024. SLB’s exposure to market risk has not changed materially since December 31, 2024.
Item 4. Controls and Procedures.
SLB has carried out an evaluation under the supervision and with the participation of SLB’s management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), of the effectiveness of SLB’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the
period covered by this report. Based on this evaluation, the CEO and the CFO have concluded that, as of the end of the period covered by this report, SLB’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that SLB files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. SLB’s disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to its management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding required disclosure. There was no change in SLB’s internal control over financial reporting during the quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, SLB’s internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
The information with respect to this Item 1 is set forth under Note 9—Contingencies, in the accompanying Consolidated Financial Statements.
Item 1A. Risk Factors.
On July 16, 2025, SLB completed the acquisition of ChampionX and therefore no longer faces risks associated with the ability to complete the ChampionX transaction. Except as described in the foregoing sentence, as of the date of this filing, there have been no material changes from the risk factors disclosed in Part 1, Item 1A, of SLB’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Unregistered Sales of Equity Securities
None.
Issuer Repurchases of Equity Securities
On January 21, 2016, the SLB Board of Directors approved a $10 billion share repurchase program for SLB common stock. As of June 30, 2025, SLB had repurchased approximately $5.8 billion of SLB common stock under this program.
SLB's common stock repurchase activity for the three months ended June 30, 2025 was as follows:
(Stated in thousands, except per share amounts)
Total numberof sharespurchased
Average pricepaid per share
Total numberof sharespurchased aspart of publiclyannounced plans or programs
Maximumvalue of sharesthat may yet bepurchasedunder the plansor programs
April 2025
9,127.3
50.40
4,241,326
May 2025
June 2025
SLB entered into ASR agreements to repurchase $2.3 billion of its common stock commencing on January 13, 2025, and ending no later than May 31, 2025. The ASR was completed on April 7, 2025, and SLB received 56.8 million shares of its common stock, of which 47.6 million were received in January 2025 and the remaining shares were received in April 2025. These shares were repurchased by SLB at an average price of $40.51, representing the volume-weighted average price of SLB's common stock during this period less a discount.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Our mining operations are subject to regulation by the federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this report.
Item 5. Other Information.
In 2013, SLB completed the wind down of its service operations in Iran. Prior to this, certain non-US subsidiaries provided oilfield services to the National Iranian Oil Company and certain of its affiliates (“NIOC”).
SLB’s residual transactions or dealings with the government of Iran during the second quarter of 2025 consisted of payments of taxes and other typical governmental charges. Certain non-US subsidiaries of SLB maintain depository accounts at the Dubai branch of Bank Saderat Iran (“Saderat”), and at Bank Tejarat (“Tejarat”) in Tehran and in Kish for the deposit by NIOC of amounts owed to non-US subsidiaries of SLB for prior services rendered in Iran and for the maintenance of such amounts previously received. One non-US
subsidiary also maintained an account at Tejarat for payment of local expenses such as taxes. SLB anticipates that it will discontinue dealings with Saderat and Tejarat following the receipt of all amounts owed to SLB for prior services rendered in Iran.
Item 6. Exhibits.
Exhibit 3.1—Articles of Incorporation of Schlumberger Limited (Schlumberger N.V.) (incorporated by reference to Exhibit 3.1 to SLB’s Current Report on Form 8-K filed on April 6, 2016)
Exhibit 3.2—Amended and Restated By-Laws of Schlumberger Limited (Schlumberger N.V.) (incorporated by reference to Exhibit 3 to SLB’s Current Report on Form 8-K filed on April 21, 2023)
* Exhibit 10.1—Employment, Non-Competition and Non-Solicitation Agreement effective as of May 1, 2025, by and between SLB and Khaled Al Mogharbel (+)
Exhibit 10.2—SLB Discounted Stock Purchase Plan, as amended and restated effective January 16, 2025 (incorporated by reference to Appendix B to SLB’s Definitive Proxy Statement on Schedule 14A filed on February 20, 2025) (+)
* Exhibit 22—Issuers of Registered Guaranteed Debt Securities
* Exhibit 31.1—Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
* Exhibit 31.2—Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
** Exhibit 32.1—Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
** Exhibit 32.2—Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
* Exhibit 95—Mine Safety Disclosures
* Exhibit 101.INS—Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document
* Exhibit 101.SCH—Inline XBRL Taxonomy Extension Schema Document
* Exhibit 104—Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Filed with this Form 10-Q.
** Furnished with this Form 10-Q.
(+) Management contracts or compensatory plans or arrangements.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date:
July 24, 2025
/s/ Howard Guild
Howard Guild
Chief Accounting Officer and Duly Authorized Signatory