UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
(Mark One)
Í ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2023
OR
‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
Commission File Number 1-4601
Schlumberger N.V.
(Schlumberger Limited)
(Exact name of registrant as specified in its charter)
Curaçao
(State or other jurisdiction of incorporation or organization)
42 rue Saint-Dominique
Paris, France
5599 San Felipe, 17th Floor
Houston, Texas, United States of America
62 Buckingham Gate
London, United Kingdom
Parkstraat 83
The Hague, The Netherlands
(Addresses of principal executive offices)
52-0684746
(IRS Employer Identification No.)
75007
77056
SW1E 6AJ
2514 JG
(Zip Codes)
Title of each class
Registrant’s telephone number including area code, is: (713) 513-2000
Securities registered pursuant to Section 12(b) of the Act:
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
SLB
Securities registered pursuant to Section 12(g) of the Act: None
New York Stock Exchange
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES Í NO ‘
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES ‘ NO Í
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 Í 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 Í 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 È 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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal
control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that
prepared or issued its audit report. È
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in
the filing reflect the correction of an error to previously issued financial statements. ‘
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ‘
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES ‘ NO Í
As of June 30, 2023, the aggregate market value of the common stock of the registrant held by non-affiliates of the registrant was approximately
$69.70 billion.
As of December 31, 2023, the number of shares of common stock outstanding was 1,427,394,843.
DOCUMENTS INCORPORATED BY REFERENCE
Certain information required to be furnished pursuant to Part III of this Form 10-K is set forth in, and is incorporated by reference from, the registrant’s
definitive proxy statement for its 2024 Annual General Meeting of Shareholders, to be filed by the registrant with the Securities and Exchange
Commission (“SEC”) pursuant to Regulation 14A within 120 days after December 31, 2023 (the “2024 Proxy Statement”).
SCHLUMBERGER LIMITED
Table of Contents
Form 10-K
Page
PART I
Item 1.
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Item 1A. Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Item 1B. Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Item 1C. Cybersecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Item 2.
Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Item 3.
Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Item 4.
Mine Safety Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
PART II
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Item 6.
[Reserved]
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Item 7A. Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . . . . . . . . . . 39
Item 8.
Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Item 9A. Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Item 9B. Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections . . . . . . . . . . . . . . . . 80
PART III
Item 10.
Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . 81
Item 11.
Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Item 13.
Certain Relationships and Related Transactions, and Director Independence . . . . . . . . . 82
Item 14.
Principal Accounting Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
PART IV
Item 15.
Exhibits and Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Item 16.
Form 10-K Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Certifications
2
PART I
Item 1. Business.
All references in this report to “Registrant,” “Company,” “SLB,” “we” or “our” are to Schlumberger
Limited (Schlumberger N.V.) and its consolidated subsidiaries.
We are SLB, a global technology company driving energy innovation for a balanced planet. With a
twice as many
global presence in more than 100 countries and employees representing almost
nationalities, we work each day on innovating energy technology, delivering digital at scale,
decarbonizing industries, and developing and scaling new energy systems that accelerate the energy
transition.
Today, the world faces the challenge of providing secure and affordable energy to meet growing
demand, while rapidly decarbonizing for a sustainable future. With nearly a century of market and
technology leadership, SLB is well positioned and committed to being a leader in providing solutions to
address this trilemma.
In October 2022, we changed our brand name to SLB and unveiled a new logo that underscores our
vision for a decarbonized energy future. This bold change highlighted our leadership as a global
technology company focused on driving energy innovation within traditional energy sources and
beyond. The SLB brand builds on nearly a century of technology innovation and industrialization. Our
identity symbolizes SLB’s commitment to moving farther and faster in facilitating the world’s energy
needs today and forging the road ahead for a sustainable future.
SLB is organized under four Divisions that combine and integrate SLB’s technologies, enhancing our
ability to support the emerging long-term growth opportunities in each of these market segments. The
four Divisions are:
Digital & Integration
Reservoir Performance
(cid:129)
(cid:129)
(cid:129) Well Construction
(cid:129)
Production Systems
Digital & Integration – Combines SLB’s industry-leading digital solutions and data products with its
integrated offering of Asset Performance Solutions (“APS”). This Division enables greater performance
for our customers by reducing cycle times and risk, accelerating returns, increasing productivity, and
lowering costs and carbon emissions.
The primary offerings comprising this Division are:
(cid:129)
(cid:129)
Digital solutions: Includes products, services, and solutions that span the energy value chain
from subsurface characterization through field development and hydrocarbon production to
carbon management and the integration of adjacent energy systems. Offerings are founded
upon proprietary and open-source data platform technologies, industry-leading simulators and
workflow tools, and include domain-specific application of innovative digital capabilities, such
intelligence and machine learning. Solutions are deployable on traditional
as artificial
on-premise IT infrastructures,
the cloud, and the edge, allowing for full market coverage
irrespective of customer constraints.
Exploration data and data processing: Provides comprehensive worldwide reservoir
interpretation and data processing services, enabled by a scientifically advanced platform and
innovative subsurface imaging techniques for exploration data, and includes one of
the
industry’s most extensive exploration data libraries.
3
(cid:129)
Asset Performance Solutions: Offers an integrated business model
field production
projects. Combines SLB’s services and products with drilling rig management and specialized
engineering and project management expertise, to provide a complete solution from well
construction to production improvement. As of December 31, 2023, SLB’s APS portfolio
primarily consisted of three field production projects in Ecuador and one in Canada.
for
Reservoir Performance – Consists of reservoir-centric technologies and services that are critical to
optimizing reservoir productivity and performance. Reservoir Performance develops and deploys
intervene, and stimulate reservoirs providing
innovative technologies and services to evaluate,
customers with greater insights into their assets and maximizing their return on investment.
The primary offerings comprising this Division are:
(cid:129)
(cid:129) Wireline: Provides the information necessary to evaluate subsurface geology and fluids to plan
and monitor well construction and to monitor and evaluate well production through both
openhole and cased hole services, including wireline logging and perforating.
Testing: Provides exploration and production pressure and flow-rate measurement services
both at the surface and downhole supported by a network of laboratories that facilitate rock
and fluid characterization.
Stimulation and Intervention: Provides services used during well completions, as well as those
used to maintain optimal production throughout the life of a well, including pressure pumping,
well stimulation, and coiled tubing equipment for downhole mechanical well intervention and
coiled-tubing drilling, reservoir monitoring, and downhole data acquisition.
(cid:129)
Well Construction – Combines the full portfolio of products and services to optimize well placement
and performance, maximize drilling efficiency, and improve wellbore assurance. Well Construction
provides operators and drilling rig manufacturers with services and products related to designing and
constructing a well.
The primary offerings comprising this Division are:
(cid:129)
(cid:129)
(cid:129)
(cid:129)
Drilling & Measurements: Provides mud logging services for geological and drilling
surveillance, directional drilling, measurement-while-drilling, and logging-while-drilling services
for all well profiles as well as engineering support.
Drilling Fluids: Supplies individually engineered drilling fluid systems that
performance and maintain well control and wellbore stability throughout drilling operations.
Drill Bits: Designs, manufactures, and markets roller cone and fixed cutter drill bits for all
drilling environments.
Drilling Tools: Includes a wide variety of bottomhole assembly and borehole enlargement
technologies for drilling operations.
improve drilling
(cid:129) Well Cementing: Provides products and services that secure and protect well casings while
(cid:129)
(cid:129)
isolating fluid zones and maximizing wellbore activity.
Integrated Well Construction: Provides integrated solutions to construct or change the
architecture (re-entry) of wells, including well planning, well drilling, engineering, supervision,
logistics, procurement and contracting of third parties, and drilling rig management.
Rigs and Equipment: Provides drilling equipment, including pressure control equipment and
rotary drilling equipment, and services for shipyards, drilling contractors, operators, and rental
tool companies, as well as land drilling rigs and related services.
Production Systems – Develops technologies and provides expertise that enhance production and
into pipelines, and to refineries. Production
recovery from subsurface reservoirs to the surface,
Systems provides a comprehensive portfolio of equipment and services including subsurface
production systems, subsea and surface equipment and services, and midstream production systems.
4
The primary offerings comprising this Division are:
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
Artificial Lift: Provides production equipment and optimization services using electrical
submersible pumps, gas lift equipment, progressing cavity pumps, and surface horizontal
pumping systems.
Completions Equipment: Supplies well completion services and equipment
include
packers, safety valves, and sand control technology, as well as a range of intelligent well
completions technology and equipment.
Surface: Designs and manufactures onshore and offshore platform wellhead systems and
processing solutions, including valves, chokes, actuators, and surface trees, and provides
services to operators.
Valves: Serves portions of the upstream, midstream, and downstream markets and provides
valve products that are primarily used to control and direct the flow of hydrocarbons as they
are moved from wellheads through flow lines, gathering lines, and transmission systems to
refineries, petrochemical plants, and industrial centers for processing.
Processing: Enables efficient monetization of subsurface assets using standard and custom-
designed onshore, offshore, and downstream processing and treatment systems, as well as
unique, reservoir-driven, fit-for-purpose integrated production systems for accelerating first
production and maximizing project economics.
that
(cid:129) OneSubsea™: Provides integrated solutions, products, systems, and services for the subsea
market, including integrated subsea production systems involving wellheads, subsea trees,
manifolds and flowline connectors, control systems, connectors and services designed to
maximize reservoir recovery and extend the life of each field.
On October 2, 2023, SLB, Aker Solutions (“Aker”), and Subsea7 closed their previously
announced joint venture. The new business, OneSubsea, will drive innovation and efficiency
in subsea production by helping customers unlock
reserves and reduce cycle
time. OneSubsea now comprises SLB’s and Aker’s subsea businesses, which include an
extensive complementary subsea production and processing technology portfolio, world-class
manufacturing scale and capacity, access to industry-leading reservoir and digital domain
expertise, unique pore-to-process integration capabilities, and strengthened research and
development capabilities. SLB owns 70% of the joint venture, while Aker owns 20% and
Subsea7 owns 10%. As the majority owner and controlling entity, SLB is considered the
acquirer and reflects OneSubsea as a consolidated subsidiary in its Consolidated Financial
Statements.
SLB’s four Divisions operate through a geographical structure of four Basins that are aligned with
critical concentrations of activity: Americas Land, Offshore Atlantic, Middle East & North Africa, and
Asia. The Basins are configured around common regional characteristics that enable us to deploy
fit-for-purpose technologies, operating models, and skills to meet the specific customer needs in each
Basin. The Basins are further organized into GeoUnits, which can be a region, a single country, or
made up of several countries. With a strong focus on customers, the Basins identify opportunities for
growth, and are focused on agility, responsiveness, and competitiveness.
Supporting the Divisions is a global network of research and development centers. Through these
centers we advance SLB’s technology programs to enhance industry efficiency, lower finding and
producing costs, improve productivity, maximize reserve recovery, and increase asset value safely,
securely, and sustainably. These centers also support SLB’s New Energy investments in lower carbon
energy sources and carbon capture technologies.
5
Corporate Strategy
The evolving marketplace will require bold new technologies and ideas, digital transformation and a
deep commitment to sustainability. With a balanced energy transition in mind, our strategy is focused
on three engines of growth: Core, Digital and New Energy.
Core
Consisting of our Reservoir Performance, WeIl Construction and Production Systems Divisions, Core
remains SLB’s largest engine of growth. Building on decades of technology advancement, we will
continue innovating new products, services and technologies that make the exploration, development
and production of oil and gas assets cleaner, more resilient, and more efficient, with lower carbon
emissions and less impact on the environment.
We continue to build on our fit-for-basin approach and technology access initiatives, developing
bespoke and custom technology tailored to the regions and environments in which we operate. This
strategy allows us to address the rapid evolution of our industry into more regional markets, each with
distinct resource plays and economics.
With the continued growth of digitally enabled technologies that improve efficiency and performance,
including our Transition Technologies™ portfolio and our SLB End-to-end Emissions Solutions (SEES)
methane elimination business, SLB provides solutions that enable customers to increase production
from their reserves at a competitive cost and at a lower carbon intensity per barrel equivalent.
Digital
Digital capabilities continue to grow throughout the energy industry as a key element of the complex
systems required to meet current energy demand and to harness the promise of a lower-carbon future.
SLB is uniquely positioned to support customers on their digital journeys by managing data migration,
workflow redesign, and transition to the cloud.
SLB’s customers have access to leading digital products and services that help to meet
their
sustainability goals by driving transparency, better measurement, more effective planning, and more
impactful and reliable outcomes. To continue elevating customer offerings, we are accelerating the
adoption of our proprietary cloud offering Delfi™, enabling enterprise data management, delivering
autonomous operations, and innovating through domain-driven artificial intelligence.
Our cloud-based solutions allow our customers to transition from our established software applications
to our Delfi digital platform, and shift from a user-based license model to software-as-a-service (SaaS)
subscriptions. This enables customers to evolve from legacy infrastructure and deliver new levels of
value creation, with access to key resources such as storage and computing from our cloud partners
and access to our industry-leading simulators. Our evolving offering of on-premises solutions allows us
to support the digital transition journey of customers that prefer or are required to maintain data
solutions locally.
New Energy
New Energy offers a significant opportunity to use SLB’s experience and scale to drive innovation for a
low-carbon economy spanning industries beyond oil and gas. We are building a broad, diverse portfolio
across New Energy sectors, selected for their materiality and adjacency to existing SLB strengths and
our ability to offer differentiated technology.
6
Our New Energy portfolio builds on several fundamental SLB strengths: our unique subsurface domain
expertise, applicable beyond oil and gas; our ability to design and deploy complex processing and
production systems as an original equipment manufacturer; our differentiated track record for
innovation and industrialization; and our ability to deploy at scale in any region of the world with local
knowledge and talent.
SLB will continue building businesses and forging partnerships across various industries to focus on
five key areas: carbon solutions, hydrogen, geothermal and geoenergy, stationary energy storage, and
critical minerals. Our ambition is to seed technology capabilities in each of these domains, and then
grow throughout the decade, ultimately scaling our New Energy offering into the Company’s fastest
growing and largest division.
(cid:129)
(cid:129)
to advancing
Carbon Solutions: Carbon capture, and sequestration (“CCS”)
decarbonization and achieving the goals of the Paris Agreement on climate change. With
industry-leading reservoir modeling capabilities, SLB has been in the CCS business for more
than three decades. The Company is actively progressing CCS technologies to enable
widespread adoption of CCS and is going beyond subsurface characterization and well
construction to include capture technology, project economics,
technology selection, and
permitting. In addition, SLB is developing digital platforms to support emissions management
for carbon and methane that will allow clients to measure, monitor, and plan abatement
strategies.
is critical
Hydrogen: SLB is investing in low-carbon hydrogen generation technologies. One such
investment is Genvia, a unique private-public partnership that combines SLB’s expertise and
experience with that of the French Atomic Energy and Alternative Energies Commission and
partners. Genvia aims to deliver the most efficient and cost-effective solid oxide electrolyzer
technology for producing clean hydrogen in hard-to-abate industrial settings—a key
component of the energy transition.
(cid:129) Geothermal and Geoenergy: Geothermal power leverages the heat of the earth to generate
electricity or provide heat directly, by tapping into subsurface hot water and steam zones that
are continuously recharged, both naturally and by injection. Geoenergy uses the ambient
temperatures beneath the earth’s surface to act as a thermal battery and dramatically reduce
energy consumption from heating and cooling buildings, electrify and, therefore, drive both
efficiency and decarbonization.
(cid:129)
(cid:129)
Stationary Energy Storage: Stationary energy storage is a key enabler to make variable
renewable energy sources (such as solar or wind) a larger component of the world’s electricity
systems enabling power to be delivered in the right place, at the right time, to meet demand.
the need increases for
As renewables become a greater percentage of
additional long-duration energy storage to ensure the efficiency of renewable assets and the
reliability of electricity systems.
the energy mix,
Critical Minerals: SLB is applying its knowledge of extraction technologies and processing to
the location and sources of critical minerals, such as lithium from brine deposits, that will be
required to support the energy transition.
Sustainability
SLB’s emissions reduction strategy is at the center of our identity and vision, and our commitment to a
sustainable future is underscored by bold science-backed targets aligned with the Paris Agreement. In
2021, SLB became the first company in the energy services industry to commit to a 2050 net-zero
greenhouse gas (“GHG”) emissions target including all three emission scopes.
7
By setting targets based on SLB’s total 2019 baseline GHG footprint—inclusive of Scope 3 emissions
(which accounted for approximately 95% of SLB’s baseline)—and not just its Scope 1 and 2 footprint,
SLB’s comprehensive emissions reduction roadmap addresses the entire energy value chain.
SLB’s 2050 net-zero target is supported by the following interim milestones, using 2019 as the baseline
year:
-
-
-
by 2025, a 30% reduction in Scope 1 and Scope 2 emissions;
by 2030, a 50% reduction in Scope 1 and Scope 2 emissions; and
by 2030, a 30% reduction in Scope 3 emissions.
SLB’s Scope 1 and 2 emissions primarily come from fuel use and electricity consumption. SLB’s Scope
3 emissions are indirect, such as emissions from customers’ use of SLB technology and emissions
from our use of third-party goods and services.
There are three key components to SLB achieving the 2050 net-zero target: reducing operational
emissions, reducing customer emissions that occur while using SLB technology, and taking carbon-
negative actions of sufficient scale to offset any residual operating and technology emissions that the
Company may have in 2050.
In tandem with our 2050 net-zero commitment, SLB introduced a portfolio of Transition Technologies™
in 2021. This portfolio includes a select group of products and services that quantifiably reduce our
customers’ GHG emissions footprint, while continuing to drive high performance, reliability, and
efficiency. This portfolio is supported by an industry-leading impact quantification framework and will
continue to grow as sustainability is further embedded in the Company’s research and development
process.
Human Capital
As a leading global technology company that operates in more than 100 countries with a workforce of
approximately 111,000 people from diverse backgrounds, cultures, and nationalities, one of SLB’s
greatest strengths is the diversity of our people. We believe that our ability to attract, develop, motivate,
and retain a highly competent and diverse workforce has been paramount to our success for many
decades. We recognize that cultivating diversity and promoting inclusion are essential to attracting the
best talent from around the world and enabling creativity and innovation to drive business success. We
believe our strong culture focused on workforce diversity, inclusivity, and learning and development
results in the best possible working environment for all our people.
Workforce Diversity
SLB’s long-standing commitment
to national and cultural diversity is reflected in our workforce
composition and our philosophy to recruit and develop people from the communities in which we
operate. Our workforce nationality mix generally aligns with the revenue derived from the countries in
8
which we work, as reflected in the charts below. This fosters a culture that is global in outlook, yet local
in practice.
2023 Revenue Mix
2023 Nationality Mix
North
America
North
America
21%
27%
E
Europe &
Africa
Latin
America
12%
Europe &
Africa
17%
38%
21%
Latin
America
31%
33%
Middle East
and Asia
Middle East
and Asia
SLB also recognizes the importance of gender diversity as a source of creativity, innovation, and
competitive advantage. We are committed to leading our industry in this area and, in this regard, a
number of years ago we established goals of having women represent 25% of our salaried workforce
by 2025 and 30% by 2030. As of December 31, 2023, women represented just under 25% of our
salaried workforce.
Inclusivity
We are building on our diversity to foster a strong culture of inclusion, in which each person can feel
accepted, respected, and empowered to perform at
their best. SLB has numerous policies and
programs to support our inclusive culture, including:
(cid:129)
(cid:129)
(cid:129)
a global Code of Conduct that outlines the standards of behavior and ethics that all employees
are expected to follow, and that prohibits any form of discrimination, harassment, or retaliation;
a global diversity, equity, and inclusion (“DEI”) strategy with a network of diversity and
inclusion champions that promote DEI awareness and best practices; and
a global mobility program that enables employees to gain international exposure and
experience and develop cross-cultural competencies.
Learning and Development
SLB invests significantly in the learning and development of our people. We strive to identify talent
early, and to provide employees who demonstrate exceptional performance with opportunities to
progress to higher levels within the organization. This allows us to accelerate personal development
while maximizing performance, fostering an agile workforce with the skills necessary to lead SLB today
and into the future.
SLB believes that through diversity, inclusivity, and learning and development, we can support our
people to reach their full potential which unlocks value for all of our stakeholders.
Competition
The principal methods of competition within the energy services industry are technological innovation,
quality of service, and price differentiation. These factors vary geographically and are dependent upon
the different services and products that SLB offers. SLB has numerous competitors, both large and
small.
9
Intellectual Property
SLB owns or controls the industry’s leading portfolio of intellectual property, including but not limited to
patents, proprietary information,
in the
aggregate, are material to SLB’s business. While SLB seeks and holds a significant number of patents
covering various products and processes, no particular patent or group of patents is material to SLB’s
business.
trade secrets, and software tools and applications that,
Seasonality
Seasonal changes in weather and significant weather events can temporarily affect the delivery of
SLB’s products and services. For example, the spring thaw in Canada and other Northern climates and
consequent road restrictions can affect activity levels, while the winter months in the North Sea,
Russia, and China can produce severe weather conditions that can temporarily reduce levels of
activity. In addition, hurricanes and typhoons can disrupt coastal and offshore operations. Furthermore,
customer spending patterns for exploration data, software, and other products may result in higher
activity in the fourth quarter of the year as clients seek to fully utilize their annual budgets. Conversely,
customer budget constraints in North America may lead to lower demand for our services and products
in the fourth quarter of the year.
Customers
SLB’s primary customers are national oil companies, large integrated oil companies, and independent
operators. No single customer exceeded 10% of SLB’s consolidated revenue during each of 2023,
2022 and 2021.
Governmental Regulations
SLB is subject
to numerous environmental and other governmental and regulatory requirements
related to its operations worldwide. For additional details, see “Item 1(a). Risk Factors – Legal and
Regulatory Risks,” which is incorporated by reference in this Item 1.
Corporate Information
the SLB family of
SLB was founded in 1926. Schlumberger Limited,
companies, is incorporated under the laws of Curaçao and has executive offices in Paris, Houston,
London, and The Hague. The Company changed its brand name to SLB in 2022 but did not change
the legal name of its listed parent company, which remains Schlumberger Limited.
the NYSE-listed parent of
Available Information
its
Investor Relations website,
is www.slb.com. SLB uses
The SLB website
https://
investorcenter.slb.com/, as a routine channel for distribution of important information, including news
releases, analyst presentations, and financial information. SLB makes available, free of charge through
its Investor Relations website at https://investorcenter.slb.com/, access to its Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and Forms 3,
4 and 5 filed on behalf of directors and executive officers, and amendments to each of those reports,
as soon as reasonably practicable after such material
furnished to the SEC.
Alternatively, you may access these reports at the SEC’s website at www.sec.gov. Copies are also
available, without charge, from SLB Investor Relations, 5599 San Felipe, Houston, Texas 77056.
Unless expressly noted, the information on its website or any other website is not incorporated by
reference in this Form 10-K and should not be considered part of this Form 10-K or any other filing SLB
makes with the SEC.
is filed with or
10
Information About Our Executive Officers
The following table sets forth, as of January 24, 2024, the names and ages of SLB’s executive officers,
including all offices and positions held by each executive officer during the past five years.
Name
Age Current Position and Five-Year Business Experience
Olivier Le Peuch
60 Chief Executive Officer and Director, since August 2019; Chief Operating
Officer, February 2019 to July 2019; and Executive Vice President,
Reservoir and Infrastructure, May 2018 to February 2019.
Khaled Al Mogharbel 53
Stephane Biguet
Abdellah Merad
55
50
Executive Vice President, Geographies, since July 2020; Executive Vice
President, Operations, April 2019 to June 2020; Executive Vice President,
Eastern Hemisphere, February 2019 to March 2019; and President,
Eastern Hemisphere, May 2017 to January 2019.
Executive Vice President and Chief Financial Officer, since January 2020;
and Vice President, Finance, December 2017 to January 2020.
Executive Vice President, Core Services and Equipment, since April
2022; Executive Vice President, Performance Management, May 2019 to
March 2022; and President, Production Group, October 2017 to April
2019.
Katharina Beumelburg 47 Chief Strategy and Sustainability Officer, since May 2021; Senior Vice
President, Transmission Service, Siemens Energy, Siemens AG (a
multinational industrial manufacturing company), April 2020 to May 2021;
and Executive Vice President, Strategy, Siemens Gas and Power,
Siemens AG, November 2016 to April 2020.
Demosthenis Pafitis
56 Chief Technology Officer, since February 2020; and Senior Vice
President, SLB 4.0 Platforms, from December 2017 to January 2020.
Dianne Ralston
57 Chief Legal Officer, since December 2020, and Secretary, since April
2021; and Executive Vice President, Chief Legal Officer, and Secretary,
TechnipFMC plc (a global oilfield services company), January 2017 to
September 2020.
Carmen Rando Bejar 46 Chief People Officer, since April 2022; Vice President, Global Business
Services, September 2019 to March 2022; and Operational Planning and
Resource Manager, Drilling and Measurements, April 2018 to August
2019.
Rakesh Jaggi
54
President, Digital and Integration, since April 2023; Senior Vice President,
Sales & Commercial, May 2019 to March 2023; and President,
Completions, March 2017 to May 2019.
Gavin Rennick
49
President, New Energy, since April 2022; Vice President, Human
Resources, February 2019 to March 2022; and President, Software
Integrated Solutions, January 2017 to February 2019.
Kevin Fyfe
50
Vice President and Treasurer, since July 2022; and Vice President and
Controller, October 2017 to June 2022.
11
Name
Age Current Position and Five-Year Business Experience
Howard Guild
52 Chief Accounting Officer, since July 2005.
Ugo Prechner
46
Vice President and Controller, since August 2022; Well Construction
Controller, July 2020 to July 2022; Controller Operations, August 2019 to
June 2020; and M-I SWACO Controller, October 2017 to August 2019.
Vijay Kasibhatla
60 Director, Mergers and Acquisitions, since January 2013.
12
Item 1A. Risk Factors.
risk factors known to us contains important
The following discussion of
the
understanding of our “forward-looking statements,” which are discussed immediately following Item 7A.
of this Form 10-K and elsewhere. These risk factors should also be read in conjunction with Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the
Consolidated Financial Statements and related notes included in Item 8. Financial Statements and
Supplementary Data of this Form 10-K.
information for
Please carefully consider the risks described below, which discuss the material factors that make an
investment in our securities speculative or risky, other material included or incorporated by reference in
this Form 10-K, and other reports and materials that we file with the SEC. Additional risks and
uncertainties not currently known to us or that we currently deem immaterial could also materially
adversely affect our business, reputation, financial condition, results of operations, cash flows and
prospects.
Business and Operational Risks
Demand for our products and services is substantially dependent on the levels of expenditures
by our customers, which can change based on many factors, including fluctuations in oil and
gas prices. Oil and gas industry downturns have resulted in reduced demand for oilfield
products and services and lower expenditures by our customers, which has in the past had,
and may in the future have, a material adverse effect on our financial condition, results of
operations and cash flows.
Demand for our products and services depends substantially on expenditures by our customers for the
exploration, development and production of oil and gas reserves. These expenditures are generally
dependent on our customers’ views of future demand for oil and gas and future oil and gas prices, as
well as our customers’ ability to access capital. In addition, the transition of the global energy sector
from a primarily fossil fuel-based system to a diverse system which includes renewable energy sources
could affect our customers’ levels of expenditures.
Actual and anticipated declines in oil and gas prices have in the past resulted in, and may in the future
result in, lower capital expenditures, project modifications, delays or cancellations, general business
disruptions, and delays in payment of, or nonpayment of, amounts that are owed to us. These effects
have had, and may in the future have, a material adverse effect on our financial condition, results of
operations and cash flows.
Historically, oil and gas prices have experienced significant volatility and can be affected by a variety of
factors, including:
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the Organization of Petroleum Exporting Countries and the
changes in the supply of and demand for hydrocarbons, which are affected by general
economic and business conditions;
the costs of exploring for, producing, and delivering oil and gas;
the ability or willingness of
expanded alliance known as OPEC+ to set and maintain production levels for oil;
the level of oil and gas exploration and production activity;
the level of excess production capacity;
the level of refining and storage capacity;
the level of oil and gas inventories;
access to potential resources;
political and economic uncertainty and geopolitical unrest;
governmental laws, policies, regulations, subsidies, and other actions, including initiatives to
promote the use of renewable energy sources;
13
(cid:129)
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speculation as to the future price of oil and the speculative trading of oil and gas futures
contracts;
technological advances affecting energy consumption; and
extreme weather conditions, natural disasters, and public health or similar issues, such as
pandemics and epidemics.
The oil and gas industry has historically experienced periodic downturns, which have been
characterized by diminished demand for our products and services and downward pressure on the
prices that we are able to charge. Sustained market uncertainty can also result in lower demand and
pricing for our products and services. A significant industry downturn, sustained market uncertainty, or
increased availability of economical alternative energy sources could result in a reduction in demand
for our products and services, which could adversely affect our business, financial condition, results of
operations, cash flows and prospects.
Disruptions in the political, regulatory, economic, and social environments of the countries in
which we operate could adversely affect our reputation,
financial condition, results of
operations and cash flows.
We are a global technology company, and our non-US operations accounted for approximately 84% of
our consolidated revenue in 2023 and 2022, and 85% in 2021. Geopolitical instability and unforeseen
changes in any of the markets in which we operate could result in business disruptions or operational
challenges that may adversely affect the demand for our products and services, or our reputation, our
financial condition, and our results of operations and cash flows. These factors include, but are not
limited to, the following:
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uncertain or volatile political, social, and economic conditions;
exposure to expropriation, nationalization, deprivation or confiscation of our assets or the
assets of our customers, or other governmental actions;
social unrest, acts of terrorism, war, or other armed conflict;
confiscatory taxation or other adverse tax policies;
theft of, or lack of sufficient legal protection for, proprietary technology and other intellectual
property;
deprivation of contract rights;
trade and economic sanctions or other restrictions imposed by the European Union, the United
States, the United Kingdom, China, or other regions or countries that could restrict or curtail
our ability to operate in certain markets;
public health crises;
unexpected changes in legal and regulatory requirements, including changes in interpretation
or enforcement of existing laws;
restrictions on the repatriation of income or capital;
currency exchange controls;
inflation; and
currency exchange rate fluctuations and devaluations.
As an example of a risk resulting from our global operations, in March 2022 we decided to immediately
suspend new investment and technology deployment to our Russia operations. In July 2023, we
announced that we were halting shipments of products into Russia from all our facilities worldwide in
response to the continued expansion of international sanctions. Russia represented approximately 5%
of our worldwide revenue during 2023. The carrying value of our net assets in Russia was
approximately $0.6 billion as of December 31, 2023. This consisted of $0.2 billion of receivables,
$0.3 billion of fixed assets, $0.4 billion of other assets, and $0.3 billion of current liabilities.
We continue to actively monitor the dynamic situation in Ukraine and applicable laws, sanctions and
trade control restrictions resulting from the conflict. The extent to which our operations, financial results
14
and cash flows may be affected by the ongoing conflict in Ukraine will depend on various factors,
including the extent and duration of the conflict; the effects of the conflict on regional and global
economic and geopolitical conditions; the effect of further laws, sanctions and trade control restrictions
on our business, the global economy and global supply chains; and the impact of fluctuations in the
exchange rate of the ruble. Continuation or escalation of the conflict may also exacerbate this and
other risk factors identified in this Form 10-K, including cybersecurity, regulatory, and reputational risks.
Failure to effectively and timely address the energy transition could adversely affect our
business, results of operations, and cash flows.
Our long-term success depends on our ability to effectively address the energy transition, which will
require adapting our
technology portfolio to changing customer preferences and government
requirements, developing solutions to decarbonize oil and gas operations, and scaling innovative
low-carbon and carbon-neutral technologies. If the energy transition landscape changes faster than
anticipated or in a manner that we do not anticipate, demand for our products and services could be
adversely affected. Furthermore, if we fail or are perceived to not effectively implement an energy
transition strategy, or if investors or financial institutions shift funding away from companies in fossil
fuel-related industries, our access to capital or the market for our securities could be negatively
impacted.
Our operations are subject to cyber incidents that could have a material adverse effect on our
business, financial condition, results of operations, and cash flows.
Our success depends in part on our ability to provide effective cyber security protection in connection
infrastructure. We operate
with our digital technologies and services as well as our internal digital
incorporate third-party
information technology networks and systems for
software and technologies. We also connect to and exchange data with external networks that may be
operated by our customers, suppliers, alliance partners, or other third parties. We provide digital
technologies that allow us or our customers to remotely perform wellsite and field operations. We also
develop software and other digital products and services that store, retrieve, manipulate, and manage
our customers’ information and data, external data, personal data, and our own data.
internal purposes that
Our digital technologies and services, as well as third-party products, services and technologies that
we rely on (including emerging technologies, such as artificial intelligence programs), are subject to the
risk of cyberattacks and, given the nature of such attacks, some incidents can remain undetected for a
period of time despite efforts to detect and respond to them in a timely manner. Cyberattacks are
expected to accelerate on a global basis in both frequency and magnitude as threat actors are
becoming increasingly sophisticated in using techniques and tools (including artificial intelligence) that
circumvent controls, evade detection and even remove forensic evidence of the infiltration. There can
be no assurance that the systems we have designed to prevent or limit the effects of cyber incidents or
attacks will be sufficient to prevent or detect material consequences arising from such incidents or
attacks, or to avoid a material adverse impact on our systems after such incidents or attacks do occur.
We have experienced and will continue to experience varying degrees of cyber incidents in the normal
conduct of our business, including attacks resulting from social engineering such as phishing and
ransomware infections. Even if we successfully defend our own digital technologies and services, we
also rely on providers of third-party products, services, and networks, with whom we may share data
and services, and who may be unable to effectively defend their digital technologies and services
against attack.
Unauthorized access to or modification of, or actions disabling our ability to obtain authorized access
to, our customers’ data, other external data, personal data, or our own data, as a result of a cyber
incident, attack or exploitation of a security vulnerability, or loss of control of our clients’ operations
could result in significant damage to our reputation or disruption of the services we provide to our
15
customers or of our customers’ businesses. In addition, allegations, reports, or concerns regarding
vulnerabilities affecting our digital products or services could damage our reputation. This could lead to
fewer customers using our digital products and services, which could have a material adverse impact
on our financial condition, results of operations, cash flows, and future prospects. In addition, if our
systems or third-party products, services, and network systems for protecting against cybersecurity
risks prove to be insufficient, we could be adversely affected by, among other things, loss of or damage
to our intellectual property, proprietary or confidential information; loss of customer, supplier, or our
employee data; breach of personal data; interruption of our business operations; disruption of our
including fines and remediation
customers’ businesses;
costs; and increased costs required to prevent, respond to, or mitigate cybersecurity attacks. These
risks could harm our reputation and our relationships with our employees, our customers, our
suppliers, our alliance partners and other third parties, and may result in claims against us.
increased legal and regulatory exposure,
We operate in a highly competitive environment.
leadership, this could adversely affect any competitive advantage we hold.
If we are unable to maintain technology
The energy industry is highly competitive and rapidly evolving. Our business may be adversely affected
if we fail to continue developing and producing innovative technologies in response to changes in the
market, including customer and government requirements, or if we fail to deliver such technologies to
our customers in a timely and cost-competitive manner. If we are unable to maintain technology
leadership in our industry, our ability to maintain market share, defend, maintain, or increase prices for
our products and services, and negotiate acceptable contract terms with our customers could be
adversely affected. Furthermore, competing or new technologies may accelerate the obsolescence of
our products or services and reduce the value of our intellectual property.
Limitations on our ability to obtain, maintain, protect, or enforce our intellectual property rights,
including our trade secrets, could cause a loss in revenue and any competitive advantage we
hold.
There can be no assurance that the steps we take to obtain, maintain, protect, and enforce our
intellectual property rights will be adequate. Some of our products or services, and the processes we
use to produce or provide them, have been granted patent protection, have patent applications
pending, or are trade secrets. Our business may be adversely affected when our patents are
unenforceable, the claims allowed under our patents are not sufficient to protect our technology, our
patent applications are denied, or our trade secrets are not adequately protected. Patent protection on
some types of technology, such as software or machine learning processes, may not be available in
certain countries in which we operate. Our competitors may also be able to develop technology
independently that is similar to ours without infringing on our patents or gaining access to our trade
secrets.
Third parties may claim that we have infringed upon or otherwise violated their intellectual
property rights.
The tools, techniques, methodologies, programs, and components we use to provide our services and
products may infringe upon or otherwise violate the intellectual property rights of others or be
challenged on that basis. Regardless of the merits, any such claims generally result in significant legal
and other costs, including reputational harm, and may distract management from running our business.
including through royalty payments to acquire
Resolving such claims could increase our costs,
licenses, if available, from third parties and through the development of replacement technologies. If a
license to resolve a claim were not available, we might not be able to continue providing a particular
service or product.
16
Legal and Regulatory Risks
Our operations require us to comply with numerous laws and regulations, violations of which
could have a material adverse effect on our reputation, financial condition, results of operations
or cash flows.
Our operations are subject to international, regional, national, and local laws and regulations in every
place where we operate, relating to matters such as environmental protection, health and safety, labor
and employment, human rights, import/export controls, currency exchange, bribery and corruption,
immigration, and taxation. These laws and
data privacy and cybersecurity,
regulations are complex, frequently change, have tended to become more stringent over time, and
could conflict among one another. In the event the scope of these laws and regulations expands in the
future, the incremental cost of compliance could adversely affect our financial condition, results of
operations, or cash flows.
intellectual property,
Our operations are subject to anti-corruption and anti-bribery laws and regulations, such as the Foreign
Corrupt Practices Act, the UK Bribery Act, and other similar laws. We are also subject to trade control
regulations and trade sanctions laws that restrict the movement of certain goods to, and certain
operations in, various countries or with certain persons. Our ability to transfer people, products, and
data among certain countries is subject to maintaining required licenses and complying with these laws
and regulations.
The internal controls, policies and procedures, and employee training and compliance programs we
have implemented to deter prohibited practices may not be effective in preventing employees,
contractors, or agents from violating or circumventing such internal policies or from material violations
of applicable laws and regulations. Any determination that we have violated or are responsible for
violations of applicable laws, including securities, environmental, trade control, trade sanctions, or anti-
corruption laws, could have a material adverse effect on our financial condition. Violations of
international and US laws and regulations or the loss of any required licenses may result in fines and
penalties, criminal sanctions, administrative remedies, or restrictions on business conduct, and could
have a material adverse effect on our business, operations, and financial condition. In addition, any
major violations could have a significant effect on our reputation and consequently on our ability to win
future business and maintain existing customer and supplier relationships.
Existing or future laws, regulations, court orders or other public- or private-sector initiatives to
limit greenhouse gas emissions or relating to climate change may reduce demand for our
products and services.
Continuing political and social attention to the issue of climate change has resulted in both existing and
legislation and regulatory
proposed international agreements and national,
measures to limit GHG emissions and mitigate the effects of climate change. The implementation of
these agreements, including the Paris Agreement, the Europe Climate Law, and other existing or future
regulatory mandates, may adversely affect the demand for our products and services, impose taxes on
us or our customers, require us or our customers to reduce GHG emissions from our technologies or
operations, or accelerate the obsolescence of our products or services.
regional, and local
In addition, increasing attention to the risks of climate change has resulted in an increased possibility of
litigation or investigations brought by public and private entities against oil and gas companies in
connection with their GHG emissions. As a result, we or our customers may become subject to court
orders compelling a reduction of GHG emissions or requiring mitigation of the effects of climate
change.
There is also increased focus by our customers, investors and other stakeholders on climate change,
sustainability, and energy transition matters. Actions to address these concerns or negative
17
perceptions of our industry or fossil fuel products and their relationship to the environment have led to
initiatives to conserve energy and promote the use of alternative energy sources, which may reduce
the demand for and production of oil and gas in areas of the world where our customers operate, and
thus reduce future demand for our products and services. In addition, initiatives by investors and
financial institutions to limit funding to companies in fossil fuel-related industries may adversely affect
our liquidity or access to capital. Any of these initiatives may, in turn, adversely affect our financial
condition, results of operations, and cash flows.
Environmental compliance costs and liabilities arising as a result of environmental laws and
regulations could have a material adverse effect on our business, financial condition, results of
operations, and cash flows.
We are subject to numerous laws and regulations relating to environmental protection, including those
governing air and GHG emissions, water discharges and waste management, as well as the
importation and use of hazardous materials, radioactive materials, chemicals, and explosives. The
technical requirements of these laws and regulations are becoming increasingly complex, stringent,
and expensive to implement. These laws sometimes provide for “strict liability” for remediation costs,
damages to natural resources or threats to public health and safety. Strict liability can render us liable
for damages without regard to our degree of care or fault. Some environmental laws provide for joint
and several strict liability for remediation of spills and releases of hazardous substances, and, as a
result, we could be liable for the actions of others.
to material
We use and generate hazardous substances and wastes in our operations. In addition, many of our
current and former properties are, or have been, used for industrial purposes. Accordingly, we could
become subject
liabilities relating to the investigation and cleanup of potentially
injury or property damage as a result of
contaminated properties, and to claims alleging personal
exposures to, or releases of, hazardous substances. In addition, stricter enforcement or changing
interpretations of existing laws and regulations,
the
discovery of previously unknown contamination, or the imposition of new or increased requirements
could require us to incur costs or become the basis for new or increased liabilities that could have a
material adverse effect on our business, operations, and financial condition.
the enactment of new laws and regulations,
We could be subject to substantial liability claims, including as a result of well incidents, which
could adversely affect our reputation, financial condition, results of operations, and cash flows.
The technical complexities of our operations expose us to a wide range of significant health, safety,
and environmental risks. Our operations involve the use of radioactive materials, chemicals, explosives
and other equipment and services that are deployed in challenging exploration, development, and
production environments. Accidents or acts of malfeasance involving these services or equipment, or a
failure of a product (including as a result of a cyberattack), could cause personal injury, loss of life,
damage to or destruction of property, equipment or the environment, or suspension of operations,
which could materially adversely affect us. Any well incidents, including blowouts at a well site or any
loss of containment or well control, may expose us to additional liabilities, which could be material.
Generally, we rely on contractual indemnities, releases, and limitations on liability with our customers
and insurance to protect us from potential liability related to such events. However, our insurance may
not protect us against liability for certain kinds of events, including events involving pollution, or against
losses resulting from business interruption. Moreover, we may not be able to maintain insurance at
levels of risk coverage or policy limits that we deem adequate. Any damages caused by our services or
products that are not covered by insurance or are in excess of policy limits or subject to substantial
deductibles, could adversely affect our financial condition, results of operations, and cash flows.
18
General Risk Factors
Our aspirations, goals, and initiatives related to sustainability and emissions reduction, and our
public statements and disclosures regarding them, expose us to numerous risks.
We have developed, and will continue to develop and set, goals, targets, and other objectives related
to sustainability matters, including our net-zero emissions target and our energy transition strategy.
Statements related to these goals, targets, and objectives reflect our current plans and aspirations and
do not constitute a guarantee that they will be achieved. Our efforts to research, establish, accomplish,
and accurately report on these goals, targets, and objectives expose us to numerous operational,
reputational, financial, legal, and other risks. Our ability to achieve any stated goal, target, or objective,
including with respect to emissions reduction, is subject to numerous factors and conditions, some of
which are outside of our control. Our targets are based on empirical data and estimates that reflect our
understanding of current best practices for measuring or estimating emissions or other metrics, but we
anticipate that future innovations in both measurement technologies and estimation methodologies
could cause us to revise our baseline as well as re-calculate progress toward our targets.
including the goals,
Our business faces increased scrutiny from certain investors and other stakeholders related to our
sustainability activities,
targets, and objectives that we announce, and our
methodologies and timelines for pursuing them. If our sustainability practices do not meet investor or
other stakeholder expectations and standards, including any third-party ratings used by stakeholders,
which continue to evolve, our reputation, our ability to attract or retain employees, our ability to access
capital, and our attractiveness as an investment or business partner could be negatively affected.
Similarly, our failure or perceived failure to pursue or fulfill our sustainability-focused goals, targets, and
objectives, to comply with ethical, environmental, or other standards, regulations, or expectations, or to
satisfy various reporting standards with respect to these matters, within the timelines we announce, or
at all, could adversely affect our business or reputation, as well as expose us to government
enforcement actions and private litigation.
Failure to attract and retain qualified personnel could impede our operations.
Our future success depends on our ability to recruit, train, and retain qualified personnel. We require
highly skilled personnel to operate and provide technical services and support for our business.
Competition for
the personnel necessary for our businesses intensifies as activity increases,
technology evolves and customer demands change. In periods of high utilization, it is often more
difficult to find and retain qualified individuals. This could increase our costs or have other material
adverse effects on our operations.
Severe weather events, including extreme weather conditions associated with climate change,
have in the past and may in the future adversely affect our operations and financial results.
Our business has been, and in the future will be, affected by severe weather events in areas where we
operate, which could materially affect our operations and financial results. Extreme weather conditions
such as hurricanes, flooding, landslides, and heat waves have in the past resulted in, and may in the
future result in, the evacuation of personnel, stoppage of services and activity disruptions at our
facilities, in our supply chain, or at well-sites, or result in disruptions to our customers’ operations.
Particularly severe weather events affecting platforms or structures may result in a suspension of
activities. Climate change may impact the frequency and/or intensity of such events. In addition, acute
or chronic physical
impacts of climate change, such as sea level rise, coastal storm surge, inland
flooding from intense rainfall, and hurricane-strength winds may damage our facilities. Any such
extreme weather events may result in increased operating costs or decreases in revenue.
19
Public health emergencies, such as the COVID-19 pandemic, and resulting adverse economic
conditions have had, and may continue to have, a material adverse effect on our financial
condition, results of operations, and cash flows.
Public health emergencies, including the COVID-19 pandemic, have caused, and could again cause, a
significant reduction in global economic activity, significantly weakening demand for oil and gas, and in
turn, demand for our products and services. Other effects of public health emergencies have included,
and may continue to include, significant volatility and disruption of the global financial markets; adverse
revenue and net income effects; disruptions to our operations, including suspension or deferral of
drilling activities; customer shutdowns of oil and gas exploration and production; downward revisions to
customer budgets; limitations on access to sources of liquidity; supply chain disruptions; limitations on
access to raw materials; employee impacts from illness; and local and regional closures or lockdowns,
including temporary closures of our facilities and the facilities of our customers and suppliers. The
extent to which our operating and financial results will be and may continue to be affected by public
health emergencies will depend on various factors beyond our control, such as the continued severity
and duration of the public health emergencies, including any sustained geographic resurgence; the
emergence of new variants and strains of a contagious disease or virus; and the success of actions to
contain or mitigate the effects of the public health emergency. A public health emergency, and volatile
regional and global economic conditions stemming from a public health emergency, could also
aggravate our other risk factors described in this Form 10-K.
Item 1B. Unresolved Staff Comments.
None.
Item 1C. Cybersecurity.
SLB maintains a cyber risk management program designed to identify, assess, manage, mitigate, and
respond to cybersecurity threats. This program is integrated within the Company’s enterprise risk
management system and addresses both the corporate information technology environment and
customer-facing products.
The underlying controls of the cyber risk management program are based on recognized best practices
Institute of
and standards for cybersecurity and information technology,
Standards and Technology (“NIST”) Cybersecurity Framework (“CSF”) and the International
Organization Standardization (“ISO”) 27001 Information Security Management System Requirements.
SLB has an annual assessment, performed by a third party, of the Company’s cyber risk management
program against the NIST CSF.
including the National
SLB has a Cyber Security Operations Center operating in three locations to provide 24/7 monitoring of
its global cybersecurity environment and to coordinate the investigation and remediation of alerts. A
program for staging incident response drills is in place to prepare support teams in the event of a
significant incident.
Cyber partners are a key part of SLB’s cybersecurity infrastructure. SLB partners with leading
cybersecurity companies and organizations,
leveraging third-party technology and expertise. SLB
engages with these partners to monitor and maintain the performance and effectiveness of products
and services that are deployed in SLB’s environment.
SLB’s Cyber Security Director reports to SLB’s Chief Information Officer and is the head of the
is responsible for assessing and
Company’s cybersecurity team. The Cyber Security Director
managing SLB’s cyber
regarding the
prevention, detection, mitigation, and remediation of cybersecurity incidents and supervises such
informs senior management
risk management program,
20
efforts. The cybersecurity team has decades of experience selecting, deploying, and operating
cybersecurity technologies,
initiatives, and processes around the world, and relies on threat
intelligence as well as other information obtained from governmental, public or private sources,
including external consultants engaged by SLB.
The Audit Committee of the Board of Directors oversees SLB’s cybersecurity risk exposures and the
steps taken by management to monitor and mitigate cybersecurity risks. The cybersecurity team briefs
the Audit Committee on the effectiveness of SLB’s cyber risk management program, typically on a
quarterly basis. In addition, cybersecurity risks are reviewed by the SLB Board of Directors, at least
annually, as part of the Company’s corporate risk mapping exercise.
SLB faces risks from cybersecurity threats that could have a material adverse effect on its business,
financial condition, results of operations, cash flows or reputation. SLB has experienced, and will
continue to experience, cyber
its business. However, prior
incidents in the normal course of
cybersecurity incidents have not had a material adverse effect on SLB’s business, financial condition,
results of operations, or cash flows. See “Risk Factors – Business and Operational Risks – Our
operations are subject to cyber incidents that could have a material adverse effect on our business,
financial condition, results of operations, and cash flows.”
Item 2. Properties.
SLB owns or
leases numerous manufacturing facilities, administrative offices, service centers,
research centers, data processing centers, mines, and other facilities throughout the world, none of
which are individually material.
Item 3. Legal Proceedings.
The information with respect to this Item 3. Legal Proceedings is set forth in Note 15—Contingencies,
in the accompanying Consolidated Financial Statements.
Item 4. Mine Safety Disclosures.
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 Form 10-K.
21
PART II
Item 5. Market
Purchases of Equity Securities.
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
As of December 31, 2023, there were 21,444 stockholders of record. The principal US market for
SLB’s common stock is the New York Stock Exchange (“NYSE”), where it is traded under the symbol
“SLB.”
The following graph compares the cumulative total stockholder return on SLB common stock with the
cumulative total return on the Standard & Poor’s 500 Index (“S&P 500 Index”) and the cumulative total
return on the Philadelphia Oil Service Index. It assumes $100 was invested on December 31, 2018 in
SLB common stock, in the S&P 500 Index and in the Philadelphia Oil Service Index, as well as the
reinvestment of dividends on the last day of the month of payment. The stockholder return set forth
below is not necessarily indicative of future performance. The following graph and related information
shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be
incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the
Securities Exchange Act of 1934, as amended, except to the extent that SLB specifically incorporates it
by reference into such filing.
Comparison of Five-Year Cumulative Total Return Among
SLB Common Stock, the S&P 500 Index and the
Philadelphia Oil Service Index
Comparison of Cumulative Five-Year Total Return
$250
$200
$150
$100
$50
$0
12/31/18
12/31/19
12/31/20
12/31/21
12/31/22
12/31/23
Schlumberger Ltd
S&P 500 Index
Philadelphia Oil Service Index (OSX)
Share Repurchases
On January 21, 2016, the SLB Board of Directors approved a $10 billion share repurchase program for
SLB common stock. SLB had cumulatively repurchased $1.7 billion of its common stock under this
program as of December 31, 2023.
22
SLB’s common stock repurchase program activity for the three months ended December 31, 2023 was
as follows:
(Stated in thousands, except per share amounts)
Total number
of shares
purchased as
part of
publicly
announced
plans or
programs
Maximum
value of
shares that
may yet be
purchased
under the
plans or
programs
Total number
of shares
purchased
Average price
paid per
share
October 2023 . . . . . . . . . . . . . . . . . . . . .
November 2023 . . . . . . . . . . . . . . . . . . .
December 2023 . . . . . . . . . . . . . . . . . . .
598.9
618.2
619.9
1,837.0
$
$
$
$
58.10
53.96
51.44
54.46
598.9 $ 8,343,538
618.2 $ 8,310,182
619.9 $ 8,278,295
1,837.0
Unregistered Sales of Equity Securities
On October 2, 2023, SLB, Aker and Subsea7 closed their previously announced joint venture. In
addition to contributing its subsea business to the joint venture, at closing SLB issued 5.1 million
shares of its common stock valued at $306.5 million to Aker through a private placement pursuant to
Rule 144A.
Item 6. [Reserved].
23
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations.
The following discussion and analysis contains forward-looking statements,
including, without
intentions, and
limitation, statements relating to our plans, strategies, objectives, expectations,
resources. Such forward-looking statements should be read in conjunction with our disclosures under
“Item 1A. Risk Factors” of this Form 10-K.
This section of the Form 10-K generally discusses 2023 and 2022 items and year-to-year comparisons
between 2023 and 2022. Discussions of 2021 items and year-to-year comparison between 2022 and
2021 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in Part
Item 7 of SLB’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2022.
II,
2023 Executive Overview
2023 was a remarkable year marked by widespread revenue growth, margin expansion, and
exceptional cash flow. Year on year, revenue grew 18%, pretax segment operating margin increased
185 basis points (“bps”) to 20% and we delivered $6.6 billion of cash flow from operations and
$4.0 billion of free cash flow—allowing us to reduce net debt by $1.4 billion and return $2.0 billion to
shareholders this year through dividends and stock repurchases.
Our strong full-year performance was fueled by substantial
international growth, with approximately
90% of our international GeoUnits posting year-on-year increases, complemented by sustained
performance in North America.
International revenue grew 20% year on year by more than $4 billion. Notably, we achieved our
highest-ever revenue in the Middle East, led by impressive growth in Saudi Arabia, the United Arab
Emirates, and Egypt & East Mediterranean GeoUnits.
In the offshore basins, we benefited from long-cycle developments, capacity expansions, and
exploration and appraisal activities with remarkable growth in Brazil and Angola, and solid increases in
the US Gulf of Mexico, Guyana, and Norway.
In North America, while activity moderated as expected in the second half of the year, revenue
increased 12% year on year, outpacing the rig count. This outperformance was driven by our
technology-leveraged portfolio in both US land and the US Gulf of Mexico.
On a divisional basis, our Core business—comprising Reservoir Performance, Well Construction, and
Production Systems—accelerated, growing revenue 20% year on year and expanding pretax segment
operating margin 277 bps.
Digital & Integration revenue increased 4% year on year. This was led by digital, which continued
strong growth momentum, delivering more than $2 billion in revenue. Our success in digital was driven
by further adoption of Delfi technology and customers embracing our connected and autonomous
drilling, data, and AI solutions.
We also saw continued adoption of our Transition Technologies portfolio as customers look to enhance
efficiency and reduce emissions. The imperative to operate more sustainably is translating into tangible
investments by our customers, resulting in the portfolio generating more than $1 billion of revenue.
As global energy demand continues to increase, international production is expected to play a key role
in meeting supply through the end of the decade. Notably, we anticipate record investment levels in the
24
Middle East extending beyond 2025, with significant expansion in Saudi Arabia, the United Arab
Emirates, Iraq, and Kuwait. Offshore remains another distinct attribute of this durable growth cycle,
serving as an important source for production growth and capacity additions, and we expect strong
activity to continue in Brazil, West Africa, the Eastern Mediterranean, the Middle East, and Southeast
Asia.
In the international environment, despite elevated geopolitical tensions in various regions, we do not
anticipate a significant impact on the sector’s overall activity, absent any escalation. Furthermore, we
expect the long-cycle investments across the Middle East, global offshore, and gas resource plays to
be largely decoupled from short-term commodity price fluctuations.
In 2024, SLB expects to experience another year of strong growth driven by the international markets.
Benefiting from these market dynamics, we foresee further growth led by Production Systems,
strengthened by the additional subsea opportunities from our OneSubsea joint venture. Sustained
momentum is expected in Reservoir Performance, accompanied by increased activity in Well
Construction. Additionally, we expect continued customer adoption of our Digital business, particularly
in our new technology platforms.
Our performance and returns-focused strategy, combined with our differentiated market positioning
and digital capabilities, will drive profitable growth and further margin expansion, setting a strong
foundation for long-term outperformance.
With confidence in the strength and longevity of the cycle and visibility into sustained strong cash
flows, in January 2024, our Board of Directors approved a 10% increase to our quarterly dividend.
Additionally, we plan to increase share repurchases in 2024, visibly enhancing returns to shareholders
for the full year.
25
Fourth Quarter 2023 Results
(Stated in millions)
Fourth Quarter 2023
Third Quarter 2023
Revenue
Pretax
Income
Revenue
Pretax
Income
Digital & Integration . . . . . . . . . . . . . . . . . . . . . . . $
Reservoir Performance . . . . . . . . . . . . . . . . . . . .
Well Construction . . . . . . . . . . . . . . . . . . . . . . . .
Production Systems . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Eliminations & other
1,049 $
1,735
3,426
2,944
(164)
356 $
371
770
442
(71)
982 $
1,680
3,430
2,367
(149)
Pretax segment operating income . . . . . . . .
Corporate & other (1) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
Interest income (2)
Interest expense (3)
. . . . . . . . . . . . . . . . . . . . . . .
Charges & credits (4) . . . . . . . . . . . . . . . . . . . . . .
1,868
(193)
30
(126)
(146)
314
344
759
319
(53)
1,683
(182)
20
(126)
-
$
8,990
$
1,433 $
8,310
$
1,395
(1) Comprised principally of certain corporate expenses not allocated to the segments, stock-based
compensation costs, amortization expense associated with certain intangible assets, certain
centrally managed initiatives, and other nonoperating items.
(2) Excludes interest income included in the segments’ income (fourth quarter 2023: $11 million; third
quarter 2023: $2 million).
(3) Excludes interest expense included in the segments’ income (fourth quarter 2023: $4 million; third
quarter 2023: $3 million).
(4) Charges and credits are described in detail in Note 3 to the Consolidated Financial Statements.
Fourth-quarter revenue of $9.0 billion increased 8% sequentially with the acquired Aker subsea
business accounting for approximately 70% of the growth, while the legacy portfolio continued its
growth trajectory in the international markets.
International revenue of $7.3 billion grew 10% sequentially, driven by Europe & Africa and the Middle
East & Asia. Europe & Africa increased 16% sequentially driven by the acquired Aker subsea
business, which accounted for most of
the sequential revenue growth, primarily in Scandinavia.
Revenue in the Middle East & Asia increased 11% sequentially driven by higher drilling, intervention,
stimulation, and evaluation activity, both on land and offshore. North America revenue of $1.6 billion
was flat sequentially as reduced drilling activity in US land and Canada was offset by higher offshore
revenue in the US Gulf of Mexico.
revenue outpaced
Compared to the same quarter
North America, growing 18%, while North America was relatively flat. Excluding the acquired Aker
subsea business, international revenue grew 10% year on year, marking the 10th consecutive quarter
of double-digit growth.
fourth-quarter 2023 international
last year,
Fourth-quarter 2023 pretax segment operating income margin of 21% increased year on year,
representing the 12th consecutive quarter of growth.
26
Digital & Integration
Digital & Integration revenue of $1.0 billion increased 7% sequentially due to increased digital revenue
across all areas led by the Middle East & Asia and Europe & Africa.
Digital & Integration pretax operating margin of 34% expanded 197 bps sequentially due to improved
profitability in digital.
Reservoir Performance
Reservoir Performance revenue of $1.7 billion grew 3% sequentially primarily due to increased activity
internationally, mainly in the Middle East and Africa.
Reservoir Performance pretax operating margin of 21% expanded 88 bps sequentially and represents
the Division’s highest level of pretax operating margin in this cycle. This increase was primarily driven
by higher activity, pricing, and improved operating leverage.
Well Construction
Well Construction revenue of $3.4 billion was flat sequentially with international growth being offset by
a decline in North America revenue. International revenue increased 2% driven primarily by strong
growth in the Middle East & Asia and Africa. North America revenue decreased 7% on a lower US land
rig count.
Well Construction pretax operating margin of 22% increased 35 bps sequentially primarily driven by
improved profitability from the increased activity in the Middle East & Asia and Africa.
Production Systems
Production Systems revenue of $2.94 billion increased 24% sequentially. The acquired Aker subsea
business accounted for most of the growth. Excluding the effects of this acquisition, revenue grew 4%
sequentially due to strong international sales.
Production Systems pretax operating margin expanded 153 bps sequentially to 15%, its highest level
in this cycle. The improvement was driven primarily by higher sales of midstream, artificial lift, and
subsea production systems.
27
Full-Year 2023 Results
(Stated in millions)
2023
2022
Revenue
Pretax
Income
Revenue
Pretax
Income
Digital & Integration . . . . . . . . . . . . . . . . . . $
Reservoir Performance . . . . . . . . . . . . . . .
Well Construction . . . . . . . . . . . . . . . . . . . .
Production Systems . . . . . . . . . . . . . . . . . .
Eliminations & other . . . . . . . . . . . . . . . . . .
3,871 $
6,561
13,478
9,831
(606)
Pretax segment operating income . . . .
Corporate & other (1) . . . . . . . . . . . . . . . . . .
Interest income (2) . . . . . . . . . . . . . . . . . . . .
Interest expense (3) . . . . . . . . . . . . . . . . . . .
Charges & credits (4) . . . . . . . . . . . . . . . . . .
3,725 $
5,553
11,397
7,862
(446)
1,257 $
1,263
2,932
1,245
(174)
6,523
(729)
87
(489)
(110)
1,357
881
2,202
748
(177)
5,011
(637)
27
(477)
347
$
33,135
$
5,282 $
28,091
$
4,271
(1) Comprised principally of certain corporate expenses not allocated to the segments, stock-based
compensation costs, amortization expense associated with certain intangible assets, certain
centrally managed initiatives, and other nonoperating items.
(2) Excludes interest income included in the segments’ income (2023: $13 million; 2022: $72 million).
(3) Excludes interest expense included in the segments’ income (2023: $14 million; 2022: $13 million).
(4) Charges and credits are described in detail in Note 3 to the Consolidated Financial Statements.
Full-year 2023 revenue of $33.1 billion increased 18% year on year led by Well Construction and
Production Systems. On a geographic basis, year-on-year revenue growth was broad-based with North
America revenue increasing 12% due to strong land and offshore drilling and higher sales of
production systems, while international revenue grew 20%.
International growth was widespread
across all areas, led by the Middle East & Asia, which grew 21% due to higher drilling and intervention
activity. Europe & Africa grew 18% primarily from higher sales of production systems in Europe and
increased activity in offshore Africa, while Latin America revenue increased 17% due to robust drilling
activity and higher sales of production systems.
Full-year 2023 pretax segment operating margin of 20% expanded by 185 bps as compared to 2022
driven by higher activity, improved pricing, and a more favorable activity mix.
Digital & Integration
Digital & Integration revenue of $3.9 billion increased 4% year on year, as strong growth in digital sales
was largely offset by lower APS revenue and decreased exploration data licensing sales. The APS
revenue decline resulted primarily from a temporary production interruption in the projects in Ecuador
during the first quarter of 2023 due to a pipeline disruption and lower commodity prices that impacted
the project in Canada. The lower exploration data licensing sales were driven by the absence of the
$95 million of transfer fees recorded in the second quarter of 2022.
28
Digital & Integration pretax operating margin contracted 397 bps to 32% primarily due to the absence
of the $95 million of exploration data transfer fees and reduced profitability from APS projects.
Reservoir Performance
Reservoir Performance revenue of $6.6 billion increased 18% year on year due primarily to increased
activity internationally.
Reservoir Performance pretax operating margin expanded 338 bps to 19% primarily due to higher
activity levels and improved pricing.
Well Construction
Well Construction revenue of $13.5 billion increased 18% year on year with double-digit growth across
all areas. North America grew 17% while international revenue increased 19%. This growth was driven
by drilling fluids and measurements—both on higher land and offshore activity—along with improved
pricing.
Well Construction pretax operating margin expanded 243 bps to 22% with profitability improving across
all geographic areas driven by the higher activity and improved pricing.
Production Systems
Production Systems revenue of $9.8 billion increased 25% driven by strong growth across all areas led
by Latin America and the Middle East & Asia, as well as the impact of the Aker subsea business, which
was acquired on October 2, 2023.
Production Systems pretax operating margin expanded 315 bps to 13% mainly driven by higher
lift, and surface production system sales, as well as improved
subsea production system, artificial
pricing, and the easing of supply chain constraints.
Interest & Other Income, Net
Interest & other income, net consisted of the following:
Earnings of equity method investments . . . . . . . . . . . . . . . . . . . . . . . . . $
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sale of Liberty shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on ADC equity investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sale of real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on repurchase of bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on Blue Chip Swap transactions . . . . . . . . . . . . . . . . . . . . . . . . . .
$
(Stated in millions)
2023
2022
206 $
100
36
-
-
-
-
342 $
164
99
325
107
43
11
(139)
610
29
On December 31, 2020, SLB contributed its onshore hydraulic fracturing business in the United States
and Canada, including its pressure pumping, pumpdown perforating and Permian frac sand business,
to Liberty Energy Inc. (“Liberty”) in exchange for an equity interest in Liberty. During 2023, SLB sold all
of its remaining approximately 9 million shares of Liberty and recognized a gain of $36 million. During
2022, SLB sold 47.8 million of its shares of Liberty and recognized a gain of $325 million.
Although SLB’s functional currency in Argentina is the US dollar, a portion of its transactions are
denominated in pesos. SLB uses Argentina’s official exchange rate to remeasure its Argentine peso-
denominated net assets into US dollars. The Central Bank of Argentina maintains certain currency
controls that limit SLB’s ability to access US dollars in Argentina and remit cash from its Argentine
operations. A legal
foreign exchange mechanism exists in the form of capital market
transactions known as Blue Chip Swaps, which effectively results in a parallel US dollar exchange rate.
This parallel rate, which cannot be used as the basis to remeasure SLB’s net monetary assets in US
dollars under US GAAP, was approximately 20% higher than Argentina’s official exchange rate at
December 31, 2023 and 93% higher at December 31, 2022.
indirect
During the fourth quarter of 2023, Argentina devalued its peso relative to the US dollar by
approximately 55%. As a result, SLB recorded a $90 million devaluation charge, of which $61 million is
classified in Cost of services in the Consolidated Statement of Income, with the remaining $29 million
classified in Cost of sales. SLB’s peso-denominated net assets in Argentina were approximately
$75 million at December 31, 2023 ($40 million at December 31, 2022 and $270 million at
September 30, 2022), primarily consisting of cash. Argentina represented less than 5% of SLB’s
consolidated revenue in each of 2023 and 2022.
SLB accounts for its investment in the Arabian Drilling Company (“ADC”), an onshore and offshore gas
and oil rig drilling company in Saudi Arabia, under the equity method. During the fourth quarter of 2022,
ADC completed an initial public offering (“IPO”). In connection with the IPO, SLB sold a portion of its
interest in a secondary offering that resulted in SLB receiving net proceeds of $223 million. As a result
of these transactions, SLB’s ownership interest in ADC decreased from 49% to approximately 34%.
SLB recognized a gain of $107 million, representing the gain on the sale of a portion of its interest as
well as the effect of the ownership dilution of its equity investment due to the IPO.
During 2022, SLB sold certain real estate and recognized a gain of $43 million.
During 2022, SLB repurchased $395 million of its 3.75% Senior Notes due 2024 and $409 million of its
4.00% Senior Notes due 2025 for $790 million, resulting in a gain of $11 million after considering the
write-off of the related deferred financing fees and other costs.
Interest Expense
Interest expense of $503 million in 2023 increased $13 million compared to 2022.
Other
Research & engineering and General & administrative expenses, as a percentage of Revenue, were
as follows:
Research & engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General & administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1%
1.1%
2.3%
1.3%
2023
2022
30
Income Taxes
The SLB effective tax rate is sensitive to the geographic mix of earnings. When the percentage of
pretax earnings generated outside of North America increases, the SLB effective tax rate generally
decreases. Conversely, when the percentage of pretax earnings generated outside of North America
decreases, the SLB effective tax rate generally increases.
The effective tax rate was 19% in 2023 as compared to 18% in 2022. The increase in the effective tax
rate was primarily due to the charges and credits described in Note 3 to the Consolidated Financial
Statements. These charges and credits reduced the effective tax rate in 2022 by approximately one
percentage point.
Charges and Credits
SLB recorded charges and credits during 2023 and 2022. These charges and credits, which are
summarized below, are more fully described in Note 3 to the Consolidated Financial Statements.
The following is a summary of the 2023 charges and credits:
Pretax
Charge (Credit)
Tax Benefit
(Expense)
Noncontrolling
Interests
Net
(Stated in millions)
First quarter:
Gain on sale of Liberty shares . . . . . . . . . $
(36) $
(8) $
- $
(28)
Fourth quarter:
Merger and integration . . . . . . . . . . . . . . . .
Currency devaluation loss in Argentina . .
56
90
$
110 $
8
-
- $
8
-
8 $
40
90
102
The following is a summary of the 2022 charges and credits:
(Stated in millions)
Pretax
Charge (Credit)
Tax Benefit
(Expense)
Net
First quarter:
Gain on sale of Liberty shares . . . . . . . . . . . . . $
(26) $
(4) $
(22)
Second quarter:
Gain on sale of Liberty shares . . . . . . . . . . . . .
Gain on sale of real estate . . . . . . . . . . . . . . . .
Fourth quarter:
Gain on sale of Liberty shares . . . . . . . . . . . . .
Loss on Blue Chip Swap transactions . . . . . . .
Gain on ADC equity investment . . . . . . . . . . . .
Gain on repurchase of bonds . . . . . . . . . . . . . .
(215)
(43)
(84)
139
(107)
(11)
(14)
(2)
(19)
-
(3)
(2)
$
(347) $
(44) $
(201)
(41)
(65)
139
(104)
(9)
(303)
31
Liquidity and Capital Resources
Details of the components of liquidity as well as changes in liquidity follow:
Components of Liquidity:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term borrowings and current portion of long-term debt . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
(Stated in millions)
Dec. 31,
2023
Dec. 31,
2022
$
2,900
1,089
(1,123)
(10,842)
1,655
1,239
(1,632)
(10,594)
Net debt (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
(7,976)
$
(9,332)
$
Changes in Liquidity:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charges and credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Earnings of equity method investments, less dividends received . . .
Increase in working capital
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
US federal tax refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flow from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
APS investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exploration data capitalized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Free cash flow (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock repurchase program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from employee stock purchase plan . . . . . . . . . . . . . . . . .
Proceeds from exercise of stock options . . . . . . . . . . . . . . . . . . . . . .
Taxes paid on net-settled stock-based compensation awards . . . . .
Business acquisitions and investments, net of cash acquired plus
debt assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of Liberty shares . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of ADC shares . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of Blue Chip Swap securities . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of Blue Chip Swap securities . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in net debt before impact of changes in foreign
exchange rates on net debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impact of changes in foreign exchange rates on net debt . . . . . . . . .
Decrease in Net Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Debt, Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2023
2022
$
4,275
110
2,312
293
28
(132)
(215)
85
(119)
6,637
(1,939)
(507)
(153)
4,038
(1,317)
(694)
191
90
(169)
(330)
137
-
-
(185)
97
(195)
1,663
(307)
1,356
(9,332)
3,492
(347)
2,147
313
(39)
(96)
(1,709)
-
(41)
3,720
(1,618)
(587)
(97)
1,418
(848)
-
141
81
(93)
(58)
732
223
120
(259)
111
(105)
1,463
261
1,724
(11,056)
Net Debt, End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
(7,976)
$
(9,332)
32
(1)
(2)
(3)
“Net debt” represents gross debt less cash and short-term investments. Management believes that
Net debt provides useful information to investors and management regarding the level of SLB’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.
Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs
and APS investments.
“Free cash flow” represents cash flow from operations less capital expenditures, APS investments
and exploration data costs capitalized. Management believes that free cash flow is an important
liquidity measure for the company and that it is useful to investors and management as a measure
of our ability to generate cash. Once business needs and obligations are met, this cash can be
used to reinvest in the company for future growth or to return to shareholders through dividend
payments or share repurchases. Free cash flow does not represent
the residual cash flow
available for discretionary expenditures. Free cash flow is a non-GAAP financial measure that
should be considered in addition to, not as a substitute for or superior to, cash flow from
operations.
Key liquidity events during 2023 and 2022 included:
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
Cash flow from operations of $6.6 billion in 2023 increased approximately $2.9 billion as
compared to 2022. This increase was primarily due to a $1.4 billion increase in net income
adjusted for the previously mentioned charges and credits and depreciation and amortization
expense combined with the effect of working capital only consuming $0.2 billion of liquidity in
2023 as compared to $1.7 billion in 2022. This $1.5 billion improvement in working capital was
largely attributable to strong collections of accounts receivable and a smaller increase in
inventory in 2023 as compared to 2022.
the
significant activity growth that SLB was expecting in 2023. Additionally, SLB received a US
federal tax refund of $85 million during the fourth quarter of 2023 relating to prior years.
Inventory increased in 2022 as a result of
In January 2023, SLB announced a 43% increase to its quarterly cash dividend from $0.175
per share of outstanding common stock to $0.25 per share, beginning with the dividend
payable in April 2023. In April 2022, SLB announced a 40% increase to its quarterly cash
dividend from $0.125 per share of outstanding common stock to $0.175 per share, beginning
with the dividend payable in July 2022. Dividends paid during 2023 and 2022 were $1.3 billion
and $0.8 billion, respectively.
In January 2024, SLB announced a 10% increase to its quarterly cash dividend from $0.25 per
share of outstanding common stock to $0.275 per share, beginning with the dividend payable
in April 2024.
As of December 31, 2023, SLB had cumulatively repurchased $1.7 billion of its common stock
under its $10 billion share repurchase program. SLB repurchased approximately 13.3 million
shares of its common stock under this program during 2023, for a total purchase price of
$694 million. SLB did not repurchase any of its common stock during 2022.
Capital investments (consisting of capital expenditures, APS investments, and exploration data
capitalized) were $2.6 billion in 2023 and $2.3 billion in 2022. Capital investments during 2024
are expected to be approximately $2.6 billion.
During the first quarter of 2023, SLB sold all of its remaining approximately 9 million shares of
Liberty and received net proceeds of $137 million. As a result, SLB recognized a gain of
$36 million. During 2022, SLB sold 47.8 million of its shares of Liberty and received proceeds
of $732 million.
33
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
During the second quarter of 2023, SLB issued $500 million of 4.50% Senior Notes due 2028
and $500 million of 4.85% Senior Notes due 2033.
During the fourth quarter of 2023, SLB repaid its $1.5 billion of 3.65% Senior Notes that were
outstanding.
During the second quarter of 2022, SLB sold certain real estate and received proceeds of
$120 million.
During the fourth quarter of 2022, SLB repurchased $395 million of its 3.75% Senior Notes due
2024 and $409 million of its 4.00% Senior Notes due 2025 for $790 million.
During the fourth quarter of 2022, SLB repaid $795 million of Senior Notes that matured.
During the fourth quarter of 2022, SLB sold a portion of its equity interest in ADC in a
secondary offering that resulted in SLB receiving net proceeds of $223 million.
As of December 31, 2023, SLB had $3.99 billion of cash and short-term investments and committed
credit facility agreements with commercial banks aggregating $5.0 billion, all of which was available
and unused. SLB believes these amounts, along with cash generated by ongoing operations, will be
sufficient to meet future business requirements for the next 12 months and beyond.
The following table reflects the carrying amounts of SLB’s debt at December 31, 2023 by year of
maturity:
2024
2025
2026
2027
2028
2029
2030
2031
(Stated in millions)
After
2032
Total
Fixed rate debt
0.00% Notes . . . . . . . . . . . . . $ 553
355
3.75% Senior Notes . . . . . . .
3.70% Notes . . . . . . . . . . . . .
54
4.00% Senior Notes . . . . . . .
1.40% Senior Notes . . . . . . .
1.375% Guaranteed Notes . .
1.00% Guaranteed Notes . . .
0.25% Notes . . . . . . . . . . . . .
4.50% Senior Notes . . . . . . .
3.90% Senior Notes . . . . . . .
4.30% Senior Notes . . . . . . .
2.65% Senior Notes . . . . . . .
0.50% Notes . . . . . . . . . . . . .
2.00% Guaranteed Notes . . .
4.85% Senior Notes . . . . . . .
7.00% Notes . . . . . . . . . . . . .
5.95% Notes . . . . . . . . . . . . .
5.13% Notes . . . . . . . . . . . . .
$ 523
499
$1,104
662
$994
$ 497
1,471
$847
$1,250
$992
553
355
54
523
499
1,104
662
994
497
1,471
847
1,250
992
1,098
496
199
112
98
$1,098
496
199
112
98
Total fixed rate debt
Variable rate debt . . . . . . . .
. . . . . . . $ 962 $1,022 $1,766 $994 $1,968 $847 $1,250 $992 $2,003 $11,804
161
161
-
-
-
-
-
-
-
-
Total . . . . . . . . . . . . . . . . . . . . $1,123 $1,022 $1,766 $994 $1,968 $847 $1,250 $992 $2,003 $11,965
34
Interest payments on fixed rate debt obligations by year are as follows:
(Stated in millions)
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
367
348
312
282
212
631
$
2,152
See Note 14, Leases of the Consolidated Financial Statements for details regarding SLB’s lease
obligations.
SLB has outstanding letters of credit/guarantees that relate to business performance bonds, customs/
excise tax commitments, facility lease/rental obligations, etc. These were entered into in the ordinary
course of business and are customary practices in the various countries where SLB operates.
Critical Accounting Estimates
The preparation of financial statements and related disclosures in conformity with accounting principles
generally accepted in the United States requires SLB to make estimates and assumptions that affect
the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported
amounts of revenue and expenses. The following accounting policies involve “critical accounting
estimates” because they are particularly dependent on estimates and assumptions made by SLB about
matters that are inherently uncertain.
SLB bases its estimates on historical experience and on various assumptions that are believed to be
reasonable under the circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates under different assumptions or conditions.
Allowance for Doubtful Accounts
SLB maintains an allowance for doubtful accounts in order to record accounts receivable at their net
realizable value. Judgment is involved in recording and making adjustments to this reserve. Allowances
have been recorded for receivables believed to be uncollectible, including amounts for the resolution of
potential credit and other collection issues such as disputed invoices. Adjustments to the allowance may be
required in future periods depending on how such potential issues are resolved, or if the financial condition
of SLB’s customers were to deteriorate resulting in an impairment of their ability to make payments.
As a large multinational company with a long history of operating in a cyclical
industry, SLB has
extensive experience in working with its customers during difficult times to manage its accounts
receivable. During weak economic environments or when there is an extended period of weakness in
oil and gas prices, SLB typically experiences delays in the payment of its receivables. However, except
for a $469 million accounts receivable write-off during 2017 as a result of the political and economic
conditions in Venezuela, SLB has not historically had material write-offs due to uncollectible accounts
receivable. SLB has a global footprint in more than 100 countries. As of December 31, 2023, three of
those countries individually accounted for greater than 5% of SLB’s net accounts receivable balance,
of which only two (the United States and Mexico) accounted for greater than 10% of such receivables.
35
As of December 31, 2023, Mexico and the United States represented 13% and 11% respectively, of
SLB’s net accounts receivable balance. SLB’s receivables from its primary customer in Mexico are not
in dispute and SLB has not historically had any material write-offs due to uncollectible accounts
receivable relating to this customer.
Goodwill, Intangible Assets and Long-Lived Assets
SLB records the excess of purchase price over the fair value of the tangible and identifiable intangible
assets acquired and liabilities assumed as goodwill. The goodwill relating to each of SLB’s reporting
units is tested for impairment annually as well as when an event, or change in circumstances, indicates
an impairment may have occurred.
Under generally accepted accounting principles, SLB has the option to first assess qualitative factors to
determine whether the existence of events or circumstances leads to a determination that it is more
likely than not that the fair value of one or more of its reporting units is greater than its carrying amount.
If, after assessing the totality of events or circumstances, SLB determines it is more likely than not that
the fair value of a reporting unit is greater than its carrying amount, there is no need to perform any
further testing. However, if SLB concludes otherwise, then it is required to perform a quantitative
impairment test by calculating the fair value of the reporting unit and comparing the fair value with the
carrying amount of the reporting unit. If the fair value of the reporting unit is less than its carrying value,
an impairment loss is recorded based on that difference.
SLB has the option to bypass the qualitative assessment for any reporting unit in any period and
proceed directly to performing the quantitative goodwill impairment test.
SLB elected to perform the qualitative assessment described above for purposes of its annual goodwill
impairment test in 2023. Based on this assessment, SLB concluded it was more likely than not that the
fair value of each of its reporting units was significantly greater than its carrying amount. Accordingly,
no further testing was required.
Long-lived assets, including fixed assets, intangible assets, and investments in APS projects, are
reviewed for impairment whenever events or changes in circumstances indicate that the carrying value
may not be recoverable. In reviewing for impairment, the carrying value of such assets is compared to
the estimated undiscounted future cash flows expected from the use of the assets and their eventual
disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment
charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value. The
determination of future cash flows as well as the estimated fair value of long-lived assets involves
significant estimates on the part of management. If there is a material change in economic conditions
or other circumstances influencing the estimate of future cash flows or fair value, SLB could be
required to recognize impairment charges in the future.
Income Taxes
SLB conducts business in more than 100 tax jurisdictions, a number of which have tax laws that are
not fully defined and are evolving. SLB’s tax filings are subject to regular audits by the tax authorities.
These audits may result in assessments for additional taxes that are resolved with the authorities or,
potentially, through the courts. SLB recognizes the impact of a tax position in its financial statements if
that position is more likely than not of being sustained on audit, based on the technical merits of the
position. Tax liabilities are recorded based on estimates of additional taxes that will be due upon the
conclusion of these audits. Estimates of these tax liabilities are judgmental and are made based upon
prior experience, and are updated in light of changes in facts and circumstances. However, due to the
uncertain and complex application of tax regulations, the ultimate resolution of audits may result in
36
liabilities that could be materially different from these estimates. In such an event, SLB will record
additional tax expense or tax benefit in the period in which such resolution occurs.
Revenue Recognition for Certain Long-term Construction-type Contracts
SLB recognizes revenue for certain long-term construction-type contracts over time. These contracts
involve significant design and engineering efforts in order to satisfy custom designs for customer-
specific applications. Under this method, revenue is recognized as work progresses on each contract.
Progress is measured by the ratio of actual costs incurred to date on the project in relation to total
estimated project costs. Approximately 6% of SLB’s revenue in 2023, 5% in 2022 and 6% in 2021, was
recognized under this method.
The estimate of total project costs has a significant impact on both the amount of revenue recognized
as well as the related profit on a project. Revenue and profits on contracts can also be significantly
affected by change orders and claims. Profits are recognized based on the estimated project profit
multiplied by the percentage complete. Due to the nature of these projects, adjustments to estimates of
contract revenue and total contract costs are often required as work progresses. Any expected losses
on a project are recorded in full in the period in which they become probable.
Pension and Postretirement Benefits
SLB’s pension and postretirement benefit obligations are described in detail
in Note 17 to the
Consolidated Financial Statements. The obligations and related costs are calculated using actuarial
concepts, which include critical assumptions related to the discount rate and the expected rate of
liability
return on plan assets. These assumptions are important elements of expense and/or
measurement and are updated on an annual basis, or upon the occurrence of significant events.
The discount rate that SLB uses reflects the prevailing market rate of a portfolio of high-quality debt
instruments with maturities matching the expected timing of payment of the related benefit obligations.
The following summarizes the discount rates utilized by SLB for its various pension and postretirement
benefit plans:
(cid:129)
(cid:129)
(cid:129)
(cid:129)
The discount rate utilized to determine the liability for SLB’s United States pension plans and
postretirement medical plan was 5.25% at December 31, 2023 and 5.50% at December 31,
2022.
The weighted-average discount rate utilized to determine the liability for SLB’s international
pension plans was 5.14% at December 31, 2023 and 5.41% at December 31, 2022.
The discount rate utilized to determine expense for SLB’s United States pension plans and
postretirement medical plan was 5.50% in 2023 and 3.00% in 2022.
The weighted-average discount rate utilized to determine expense for SLB’s international
pension plans was 5.41% in 2023 and 2.83% in 2022.
The expected rate of return for SLB’s retirement benefit plans represents the long-term average rate of
return expected to be earned on plan assets based on expectations regarding future rates of return for
the portfolio considering the asset allocation and related historical rate of return. The average expected
rate of return on plan assets for the United States pension plans was 6.00% in 2023 and 4.40% in
2022. The weighted average expected rate of return on plan assets for the international pension plans
was 6.00% in 2023 and 5.05% in 2022. A higher expected rate of return decreases pension expense.
37
The following illustrates the sensitivity to changes in certain assumptions, holding all other assumptions
constant, for SLB’s United States and international pension plans:
Change in Assumption
(Stated in millions)
Effect on
2023 Pretax
Expense
Effect on
Dec. 31, 2023
Obligation
25 basis point decrease in discount rate . . . . . . . . . . . . . . . . . . . . . .
25 basis point increase in discount rate . . . . . . . . . . . . . . . . . . . . . .
25 basis point decrease in expected return on plan assets . . . . . . .
25 basis point increase in expected return on plan assets . . . . . . .
-$3
+$15
+$35
-$35
+$356
-$338
-
-
The following illustrates the sensitivity to changes in certain assumptions, holding all other assumptions
constant, for SLB’s United States postretirement medical plans:
Change in Assumption
(Stated in millions)
Effect on
2023 Pretax
Expense
Effect on
Dec. 31, 2023
Obligation
25 basis point decrease in discount rate . . . . . . . . . . . . . . . . . . . . . . .
25 basis point increase in discount rate . . . . . . . . . . . . . . . . . . . . . . .
-$2
+$2
+$23
-$22
38
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
SLB is subject to market risks primarily associated with changes in foreign currency exchange rates.
SLB’s functional currency is primarily the US dollar. Approximately 72% of SLB’s revenue in 2023 was
denominated in US dollars. However, outside the United States, a significant portion of SLB’s
expenses is incurred in foreign currencies. Therefore, when the US dollar weakens in relation to the
foreign currencies of the countries in which SLB conducts business, the US dollar-reported expenses
will increase.
SLB is exposed 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 cash flow risks and effectively convert the debt to US-dollar denominated fixed rate debt.
SLB maintains a foreign currency risk management strategy that uses derivative instruments to
manage the impact of changes in foreign exchange rates on its earnings. SLB enters into foreign
currency forward contracts to provide a hedge against currency fluctuations on certain monetary assets
and liabilities, and certain expenses denominated in currencies other than the functional currency.
A 10% appreciation in the US dollar from the December 31, 2023 market rates would decrease the
unrealized value of SLB’s forward contracts by $103 million. Conversely, a 10% depreciation in the US
dollar from the December 31, 2023 market rates would increase the unrealized value of SLB’s forward
contracts by $113 million. In either scenario, the gain or loss on the forward contract would be offset by
the gain or loss on the underlying transaction, and therefore, would have no impact on future earnings.
At December 31, 2023, contracts were outstanding for the US dollar equivalent of $10.6 billion in
various foreign currencies, of which $5.3 billion related to hedges of debt balances denominated in
currencies other than the functional currency.
Forward-Looking Statements
“outlook,”
“forecast,”
“estimate,”
“precursor,”
“projections,”
“expectations,”
This Form 10-K, as well as other statements we make, contains “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,”
“intend,”
“projected,”
“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); 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 the ongoing conflict in Ukraine 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
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
to risks and uncertainties,
including, but not
39
net-zero carbon emissions goals or interim emissions reduction goals; general economic, geopolitical
and business conditions in key regions of the world; the ongoing conflict in Ukraine; foreign currency
risk; inflation; changes in monetary policy by governments; 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-K and other filings that we make with 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-K
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-K are made as of January 24, 2024, 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.
40
Item 8. Financial Statements and Supplementary Data.
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Year Ended December 31,
Revenue
(Stated in millions, except per share amounts)
2023
2022
2021
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Product sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22,439 $
10,696
19,552 $
8,539
Total Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest & other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses
Cost of services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research & engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General & administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Merger & integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to noncontrolling interests . . . . . . . .
33,135
342
17,231
9,341
711
364
45
503
5,282
1,007
4,275
72
28,091
610
15,233
7,697
634
376
-
490
4,271
779
3,492
51
Net income attributable to SLB . . . . . . . . . . . . . . . . . . . . . . . . . . $
4,203 $
3,441 $
Basic earnings per share of SLB . . . . . . . . . . . . . . . . . . . . . . . $
2.95 $
2.43 $
Diluted earnings per share of SLB . . . . . . . . . . . . . . . . . . . . . $
2.91 $
2.39 $
Average shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assuming dilution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,425
1,443
1,416
1,437
15,602
7,327
22,929
148
13,129
6,142
554
339
-
539
2,374
446
1,928
47
1,881
1.34
1.32
1,400
1,427
See the Notes to Consolidated Financial Statements
41
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year Ended December 31,
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Currency translation adjustments
(Stated in millions)
2023
2022
2021
4,275 $
3,492 $
1,928
Net change arising during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(113)
(26)
Cash flow hedges
Net gain (loss) on cash flow hedges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reclassification to net income of net realized (gain) loss . . . . . . . . . . . . .
Pension and other postretirement benefit plans
Actuarial gain (loss) arising during the period . . . . . . . . . . . . . . . . . . . . . . .
Amortization to net income of net actuarial loss . . . . . . . . . . . . . . . . . . . . .
Amortization to net income of net prior service credit
. . . . . . . . . . . . . . . .
Income taxes on pension and other postretirement benefit plans . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Comprehensive income attributable to noncontrolling interests . . . . . . . .
177
(19)
(437)
(12)
(23)
58
(30)
3,876
72
(148)
117
(305)
75
(23)
24
1
3,207
51
83
(12)
(3)
1,075
271
(23)
(74)
(3)
3,242
47
Comprehensive income attributable to SLB . . . . . . . . . . . . . . . . . . . . . . . . . . . $
3,804 $
3,156 $
3,195
See the Notes to Consolidated Financial Statements
42
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Stated in millions)
2023
2022
December 31,
ASSETS
Current Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables less allowance for doubtful accounts (2023—$337; 2022—$340) . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,900 $
1,089
7,812
4,387
1,530
Investments in Affiliated Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed Assets less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17,718
1,624
7,240
14,084
3,239
4,052
1,655
1,239
6,766
3,999
1,344
15,003
1,581
6,607
12,982
2,992
3,970
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated liability for taxes on income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term borrowings and current portion of long-term debt . . . . . . . . . . . . . . .
Dividends payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term Debt
Postretirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SLB stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 47,957 $ 43,135
10,904
994
1,123
374
13,395
10,842
175
140
2,046
9,121
1,002
1,632
263
12,018
10,594
165
61
2,308
26,598
25,146
11,624
(678)
13,497
(4,254)
20,189
1,170
11,837
(1,016)
10,719
(3,855)
17,685
304
21,359
17,989
$ 47,957 $ 43,135
See the Notes to Consolidated Financial Statements
43
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended December 31,
Cash flows from operating activities:
(Stated in millions)
2023
2022
2021
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Adjustments to reconcile net income to cash provided by operating activities:
4,275 $
3,492 $
1,928
Charges and credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Earnings of equity method investments, less dividends received . . . . . . . . . . . . . .
Change in assets and liabilities: (2)
Increase in receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Increase) decrease in inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease (increase) in other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in accounts payable and accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . .
(Decrease) increase in estimated liability for taxes on income . . . . . . . . . . . . . . . .
(Decrease) increase in other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other
110
2,312
28
293
(132)
(659)
(254)
121
(10)
724
(62)
(76)
(33)
(347)
2,147
(39)
313
(96)
(1,728)
(737)
(44)
(45)
704
96
23
(19)
(65)
2,120
(31)
324
10
(36)
75
387
(2)
160
(154)
(26)
(39)
NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flows from investing activities:
6,637
3,720
4,651
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
APS investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exploration data capitalized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of Liberty shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of ADC shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business acquisitions and investments, net of cash acquired . . . . . . . . . . . . . . . . . . . . .
Sale of short-term investments, net
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of Blue Chip Swap securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of Blue Chip Swap securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1,939)
(507)
(153)
137
—
—
(242)
117
(185)
97
(108)
(1,618)
(587)
(97)
732
223
120
(58)
138
(259)
111
(93)
(1,141)
(474)
(39)
109
—
—
(103)
787
—
—
(58)
NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,783)
(1,388)
(919)
Cash flows from financing activities:
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from employee stock purchase plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes paid on net-settled stock-based compensation awards . . . . . . . . . . . . . . . . . . . . .
Stock repurchase program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from issuance of long-term debt
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repayment of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net increase (decrease) in short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET CASH USED IN FINANCING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net increase (decrease) in cash before translation effect . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impact of changes in exchange rates on cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1,317)
191
90
(169)
(694)
994
(1,578)
2
(31)
(2,512)
1,342
(97)
1,655
(848)
142
81
(93)
—
—
(1,650)
37
(51)
(2,382)
(50)
(52)
1,757
(699)
137
—
(24)
—
34
(2,076)
(105)
(91)
(2,824)
908
5
844
Cash, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2,900 $
1,655 $
1,757
(1)
(2)
Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs and APS investments.
Net of the effect of business acquisitions and divestitures.
See the Notes to Consolidated Financial Statements
44
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
Common Stock
Issued
In Treasury
12,970 $
(3,033) $
(Stated in millions)
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Noncontrolling
Interests
Total
7,018 $
1,881
(4,884) $
83
(15)
1,249
418 $
47
(2)
Balance, January 1, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Currency translation adjustments . . . . . . . . . . . . . . . . . .
Changes in fair value of cash flow hedges . . . . . . . . . . .
Pension and other postretirement benefit plans . . . . . . .
Vesting of restricted stock, net of taxes withheld . . . . . .
Employee stock purchase plan . . . . . . . . . . . . . . . . . . . .
Stock-based compensation expense . . . . . . . . . . . . . . .
Dividends declared ($0.50 per share) . . . . . . . . . . . . . . .
Deconsolidation of subsidiary . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other
Balance, December 31, 2021 . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Currency translation adjustments . . . . . . . . . . . . . . . . . .
Changes in fair value of cash flow hedges . . . . . . . . . . .
Pension and other postretirement benefit plans . . . . . . .
Vesting of restricted stock, net of taxes withheld . . . . . .
Employee stock purchase plan . . . . . . . . . . . . . . . . . . . .
Stock-based compensation expense . . . . . . . . . . . . . . .
Shares sold to optionees, less shares exchanged . . . . .
Dividends declared ($0.65 per share) . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other
Balance, December 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Currency translation adjustments . . . . . . . . . . . . . . . . . .
Changes in fair value of cash flow hedges . . . . . . . . . . .
Pension and other postretirement benefit plans . . . . . . .
Vesting of restricted stock, net of taxes withheld . . . . . .
Employee stock purchase plan . . . . . . . . . . . . . . . . . . . .
Stock repurchase program . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation expense . . . . . . . . . . . . . . .
Shares sold to optionees, less shares exchanged . . . . .
Dividends declared ($1.00 per share) . . . . . . . . . . . . . . .
Acquisition of Aker Subsea . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other
(305)
(377)
324
281
514
(4)
5
12,608
(2,233)
(795)
(222)
313
(67)
702
364
148
3
11,837
(1,016)
(702)
(162)
293
(53)
413
(2)
533
353
(694)
143
3
(700)
8,199
3,441
(921)
10,719
4,203
(1,425)
(123)
(58)
282
51
(29)
304
72
(3)
(3,570)
(26)
(31)
(229)
1
(3,855)
(113)
158
(414)
(30)
841
(47)
12,489
1,928
81
(15)
1,249
(24)
137
324
(700)
(123)
(60)
15,286
3,492
(26)
(31)
(229)
(93)
142
313
81
(921)
(25)
17,989
4,275
(113)
158
(414)
(169)
191
(694)
293
90
(1,425)
1,254
(76)
Balance, December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . $
11,624 $
(678) $
13,497 $
(4,254) $
1,170 $
21,359
See the Notes to Consolidated Financial Statements
45
SCHLUMBERGER LIMITED AND SUBSIDIARIES
SHARES OF COMMON STOCK
Balance, January 1, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employee stock purchase plan . . . . . . . . . . . . . . . . . . . .
Vesting of restricted stock, net of taxes withheld . . . . . .
Balance, December 31, 2021 . . . . . . . . . . . . . . . . . . . . . . . .
Employee stock purchase plan . . . . . . . . . . . . . . . . . . . .
Vesting of restricted stock, net of taxes withheld . . . . . .
Shares sold to optionees, less shares exchanged . . . . .
Balance, December 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . .
Employee stock purchase plan . . . . . . . . . . . . . . . . . . . .
Vesting of restricted stock, net of taxes withheld . . . . . .
Shares sold to optionees, less shares exchanged . . . . .
Stock repurchase program . . . . . . . . . . . . . . . . . . . . . . .
Acquisition of Aker Subsea . . . . . . . . . . . . . . . . . . . . . . .
Balance, December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . .
See the Notes to Consolidated Financial Statements
Issued
In Treasury
(Stated in millions)
Shares
Outstanding
1,434
-
-
1,434
-
-
-
1,434
-
-
-
-
5
1,439
(42)
7
4
(31)
5
10
2
(14)
5
8
2
(13)
-
(12)
1,392
7
4
1,403
5
10
2
1,420
5
8
2
(13)
5
1,427
46
Notes to Consolidated Financial Statements
1. Business Description
Schlumberger Limited (Schlumberger N.V., incorporated in Curaçao) and its consolidated subsidiaries
(collectively, “SLB”) form a global technology company that drives energy innovation for a balanced
planet. With a global footprint in more than 100 countries and employees representing almost twice as
many nationalities, SLB works each day on innovating energy technology, delivering digital at scale,
decarbonizing industries, and developing and scaling new energy systems that accelerate the energy
transition.
2. Summary of Accounting Policies
The Consolidated Financial Statements of SLB have been prepared in accordance with accounting
principles generally accepted in the United States of America.
Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during the reporting
period. On an ongoing basis, SLB evaluates its estimates, including those related to collectibility of
accounts receivable; revenue recognized for certain long-term construction-type contracts over time;
recoverability of fixed assets, goodwill, intangible assets, Asset Performance Solutions investments,
and investments in affiliates; income taxes; exploration data; contingencies and actuarial assumptions
for employee benefit plans. SLB bases its estimates on historical experience and other assumptions
that are believed to be reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are not readily apparent from
other sources. Actual
from these estimates under different assumptions or
conditions.
results may differ
Revenue Recognition
SLB recognizes revenue upon the transfer of control of promised products or services to customers at
an amount that reflects the consideration it expects to receive in exchange for these products or
services. The vast majority of SLB’s services and product offerings are short-term in nature. The time
between invoicing and when payment is due under these arrangements is generally between 30 to 60
days.
Revenue is recognized for certain long-term construction-type contracts over time. These contracts
involve significant design and engineering efforts in order to satisfy custom designs for customer-
specific applications. Revenue is recognized as work progresses on each contract. Progress is
measured by the ratio of actual costs incurred to date on the project in relation to total estimated
project costs. The estimate of total project costs has a significant impact on both the amount of
revenue recognized as well as the related profit on a project. Revenue and profits on contracts can
also be significantly affected by change orders and claims. Due to the nature of these projects,
adjustments to estimates of contract revenue and total contract costs may be required as work
progresses. Progress billings are generally issued upon completion of certain phases of work as
stipulated in the contract. Any expected losses on a project are recorded in full in the period in which
they become probable.
its businesses, SLB does not have significant backlog. Total backlog was
Due to the nature of
$5.9 billion at December 31, 2023, of which approximately 60% is expected to be recognized as
revenue during 2024.
47
Short-term Investments
Short-term investments are comprised primarily of money market funds, time deposits, certificates of
deposit, commercial paper, bonds, and notes, substantially all of which are denominated in US dollars
and are stated at cost plus accrued interest, which approximates fair value.
For purposes of
investments to be cash equivalents.
the Consolidated Statement of Cash Flows, SLB does not consider Short-term
Investments in Affiliated Companies
Investments in companies in which SLB does not have a controlling financial interest, but over which it
has significant influence, are accounted for using the equity method. SLB’s share of the after-tax
earnings of equity method investees is included in Interest & other income. Investments in privately
held companies in which SLB does not have the ability to exercise significant influence are accounted
for using the cost method. Investments in publicly traded companies in which SLB does not have the
ability to exercise significant influence are reported at fair value, with unrealized gains and losses
reported as a component of Interest & other income.
Exploration Data
SLB’s exploration data library consists of completed and in-process seismic surveys that are licensed
on a nonexclusive basis. SLB capitalizes costs directly incurred in acquiring and processing the
exploration data. Such costs are charged to Cost of services based on the percentage of the total costs
to the estimated total revenue that SLB expects to receive from the sales of such data. However, an
individual survey generally will not carry a net book value greater than a 4-year, straight-line amortized
value.
The carrying value of the exploration data library is reviewed for impairment annually as well as when
an event or change in circumstance indicating impairment may have occurred. Adjustments to the
carrying value are recorded when it is determined that estimated future cash flows, which involve
significant judgment on the part of SLB, would not be sufficient to recover the carrying value of the
surveys. Significant adverse changes in SLB’s estimated future cash flows could result in impairment
charges in a future period.
Asset Performance Solutions
Asset Performance Solutions (“APS”) projects are generally focused on developing and co-managing
production of customers’ assets under long-term agreements. SLB invests its own services and
products into the field development activities and operations and is compensated on a fee-per-barrel
basis or based on cash flow generated. This includes certain arrangements whereby SLB is only
compensated based on incremental production that it helps deliver above a mutually agreed baseline.
SLB capitalizes its investments in a project including the direct costs associated with providing its
services or products. These capitalized investments are amortized to the Consolidated Statement of
Income as the related production is achieved based on the units of production method, whereby each
the unamortized costs based on estimated total
unit produced is assigned a pro-rata portion of
production, resulting in a matching of revenue with the applicable costs.
Concentration of Credit Risk
SLB’s assets that are exposed to concentrations of credit risk consist primarily of cash, short-term
investments, receivables from clients, and derivative financial instruments. SLB places its cash and
48
short-term investments with financial
institutions and corporations and limits the amount of credit
exposure with any one of them. SLB regularly evaluates the creditworthiness of the issuers in which it
invests. By using derivative financial instruments to hedge certain exposures, SLB exposes itself to
some credit risk. SLB minimizes this credit risk by entering into transactions with high-quality
counterparties, limiting the exposure to each counterparty and monitoring the financial condition of its
counterparties.
As a large multinational company, SLB’s accounts receivable are spread over many countries and
customers. The United States and Mexico represented 11% and 13%, respectively, of SLB’s net
accounts receivable balance at December 31, 2023. No other countries accounted for greater than
10% of SLB’s accounts receivable balance. SLB maintains an allowance for uncollectible accounts
receivable based on expected collectibility and performs ongoing credit evaluations of its customers’
financial condition. If the financial condition of SLB’s customers were to deteriorate resulting in an
impairment of their ability to make payments, adjustments to the allowance may be required.
Earnings per Share
The following is a reconciliation from basic to diluted earnings per share of SLB:
(Stated in millions, except per share amounts)
Net Income
Attributable to
SLB
Average
Shares
Outstanding
Earnings per
Share
2023:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Dilutive impact of stock options and restricted stock . . . . . .
4,203
-
1,425 $
2.95
18
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
4,203
1,443 $
2.91
2022:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Dilutive impact of stock options and restricted stock . . . . . . . . . .
3,441
-
1,416 $
2.43
21
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
3,441
1,437 $
2.39
2021:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Dilutive impact of stock options and restricted stock . . . . . . . . . .
1,881
-
1,400 $
1.34
27
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
1,881
1,427 $
1.32
The number of outstanding employee stock options to purchase shares of SLB common stock that
were not included in the computation of diluted earnings per share, because to do so would have had
an anti-dilutive effect, were as follows:
Employee stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
25
42
(Stated in millions)
2023
2022
2021
49
3. Charges and Credits
2023
SLB recorded the following charges and credits during 2023:
Pretax
Charge (Credit)
Tax Benefit
(Expense)
Noncontrolling
Interests
Net
(Stated in millions)
First quarter:
Gain on sale of Liberty shares . . . . . . . . . . $
(36) $
(8) $
- $
(28)
Fourth quarter:
Merger and integration . . . . . . . . . . . . . . . .
Currency devaluation loss in Argentina . .
56
90
8
-
8
-
40
90
$
110 $
- $
8 $
102
First quarter 2023:
(cid:129) On December 31, 2020, SLB contributed its onshore hydraulic fracturing business in the
including its pressure pumping, pumpdown perforating and
United States and Canada,
Permian frac sand business, to Liberty Energy Inc. (“Liberty”) in exchange for an equity interest
in Liberty. During the first quarter of 2023, SLB sold all of its remaining approximately 9 million
shares of Liberty and received net proceeds of $137 million. As a result, SLB recognized a
gain of $36 million which is classified in Interest & other income in the Consolidated Statement
of Income.
Fourth quarter 2023:
(cid:129)
(cid:129)
In connection with SLB’s acquisition of the Aker Solutions (“Aker”) subsea business (see
Note 6 – Acquisition), SLB recorded the following charges: $23 million of acquisition-related
transaction costs, including advisory and legal fees; $11 million relating to the amortization of
purchase accounting adjustments associated with the write-up of acquired inventories to its
estimated fair value; and $22 million of other merger and integration-related costs. $45 million
of these costs are classified in Merger & integration in the Consolidated Statement of Income
with the remaining $11 million classified in Cost of sales.
Although SLB’s functional currency in Argentina is the US dollar, a portion of its transactions
are denominated in pesos. During the fourth quarter of 2023, Argentina devalued its peso
relative to the US dollar by approximately 55%. As a result, SLB recorded a $90 million
devaluation charge. $61 million of
this charge is classified in Cost of services in the
Consolidated Statement of Income, with the remaining $29 million classified in Cost of sales.
SLB’s peso-denominated net assets in Argentina were approximately $75 million at
December 31, 2023, primarily consisting of cash.
50
2022
SLB recorded the following charges and credits during 2022, all of which are classified in Interest &
other income, net in the Consolidated Statement of Income:
(Stated in millions)
Pretax
Charge (Credit)
Tax Benefit
(Expense)
Net
First quarter:
Gain on sale of Liberty shares . . . . . . . . . . . . . . $
(26) $
(4) $
Second quarter:
Gain on sale of Liberty shares . . . . . . . . . . . . . .
Gain on sale of real estate . . . . . . . . . . . . . . . . .
Fourth quarter:
Gain on sale of Liberty shares . . . . . . . . . . . . . .
Loss on Blue Chip Swap transactions . . . . . . . .
Gain on ADC equity investment
. . . . . . . . . . . . .
Gain on repurchase of bonds . . . . . . . . . . . . . . .
(215)
(43)
(84)
139
(107)
(11)
(14)
(2)
(19)
-
(3)
(2)
$
(347) $
(44) $
(22)
(201)
(41)
(65)
139
(104)
(9)
(303)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
During 2022, SLB sold 47.8 million of
its shares of Liberty and received proceeds of
$730 million. These transactions resulted in gains of $325 million. As of December 31, 2022,
SLB had a 5% equity interest in Liberty.
The Central Bank of Argentina maintains certain currency controls that limit SLB’s ability to
access US dollars in Argentina and remit cash from its operations in Argentina. A legal indirect
foreign exchange mechanism exists, in the form of capital market transactions known as Blue
Chip Swaps, which effectively results in a parallel US dollar exchange rate. During the fourth
quarter of 2022, SLB entered into Blue Chip Swap transactions that resulted in a loss of
$139 million.
During the fourth quarter of 2022, SLB repurchased $395 million of its 3.75% Senior Notes due
2024, and $409 million of its 4.00% Senior Notes due 2025 for $790 million, resulting in a gain
of $11 million after considering the write-off of the related deferred financing fees and other
costs.
SLB accounts for its investment in the Arabian Drilling Company (“ADC”), an onshore and
offshore gas and oil rig drilling company in Saudi Arabia, under the equity method. During the
fourth quarter of 2022, ADC completed an initial public offering (“IPO”). In connection with the
IPO, SLB sold a portion of its interest in a secondary offering that resulted in SLB receiving net
proceeds of $223 million. As a result of these transactions, SLB’s ownership interest in ADC
decreased from 49% to approximately 34%. SLB recognized a gain of $107 million,
representing the gain on the sale of a portion of its interest as well as the effect of the
ownership dilution of its equity investment due to the IPO. As of December 31, 2023, the fair
value of SLB’s investment in ADC, based on the quoted market price of ADC’s shares, was
approximately $1.4 billion and the carrying value of its investment was $602 million. SLB
accounts for its share of ADC’s net income on a one-quarter lag.
(cid:129)
During the second quarter of 2022, SLB sold certain real estate and received proceeds of
$120 million. As a result of this transaction, SLB recognized a gain of $43 million.
51
2021
SLB recorded the following charges and credits during 2021, all of which are classified in Interest &
other income, net in the Consolidated Statement of Income:
(Stated in millions)
Pretax
Charge (Credit)
Tax Benefit
(Expense)
Net
Third quarter:
Unrealized gain on marketable securities . . . . . $
(47) $
(11) $
Fourth quarter:
Gain on sale of Liberty shares . . . . . . . . . . . . . .
Early repayment of bonds . . . . . . . . . . . . . . . . . .
(28)
10
(4)
-
$
(65) $
(15) $
(36)
(24)
10
(50)
Third quarter 2021:
(cid:129)
During the third quarter of 2021, a start-up company that SLB previously invested in was
acquired. As a result of this transaction, SLB’s ownership interest was converted into shares of
a publicly traded company. SLB recognized an unrealized pretax gain of $47 million to
increase the carrying value of this investment to its estimated fair value of approximately
$55 million.
Fourth quarter 2021:
(cid:129)
SLB sold 9.5 million of its shares of Liberty and received proceeds of $109 million. As a result
of this transaction SLB recognized a gain of $28 million.
(cid:129) On November 30, 2021, SLB deposited sufficient funds with the trustee for its $1.0 billion of
2.40% Senior Notes due 2022 to satisfy and discharge all of its obligations relating to such
notes. As a result of this transaction, SLB recorded a charge of $10 million.
4. Inventories
Inventories, which are stated at the lower of average cost or net realizable value, consist of the
following:
Raw materials & field materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Work in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
(Stated in millions)
2023
2022
2,296 $
762
1,329
4,387 $
2,085
547
1,367
3,999
52
5. Fixed Assets
Fixed assets consist of the following:
(Stated in millions)
2023
2022
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Buildings & improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Machinery & equipment
Less: Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
323 $
4,569
25,073
29,965
22,725
$
7,240 $
326
4,328
23,732
28,386
21,779
6,607
The estimated useful lives of Buildings & improvements are primarily 25 to 30 years. The estimated
useful lives of Machinery & equipment are primarily 5 to 10 years.
Depreciation expense, which is recorded on a straight-line basis, was $1.4 billion in 2023, 2022, and
2021.
6. Acquisition
On October 2, 2023, SLB, Aker, and Subsea7 closed their previously announced joint venture. The
new business, OneSubsea, will drive innovation and efficiency in subsea production by helping
customers unlock reserves and reduce cycle time. OneSubsea now comprises SLB’s and Aker’s
subsea businesses, which include an extensive complementary subsea production and processing
technology portfolio, world-class manufacturing scale and capacity, access to industry-leading
reservoir and digital domain expertise, unique pore-to-process integration capabilities, and
strengthened research and development capabilities.
In addition to contributing its subsea business to the joint venture, at closing SLB issued 5.1 million shares
of its common stock valued at $306.5 million to Aker. Concurrently, Subsea7 purchased a 10% interest in
exchange for $306.5 million in cash to Aker. The joint venture also issued a promissory note valued at
$87.5 million to Aker. SLB owns 70% of the joint venture, while Aker owns 20% and Subsea7 owns 10%.
The formation of the joint venture was accounted for as a business combination. As the majority owner
and controlling entity, SLB is considered the acquirer and reflects OneSubsea as a consolidated
subsidiary in its Consolidated Financial Statements. The transfer of the SLB subsea business to the
joint venture was accounted for at historical cost, while the Aker subsea business was recorded based
on the fair value of the assets acquired and liabilities assumed of approximately $1.3 billion.
The combination of the historical cost and fair value, discussed above, resulted in net assets of the
joint venture of approximately $2.8 billion upon formation. Aker and Subsea7’s combined 30% interest
in the initial net assets of OneSubsea of $0.8 billion was recognized in Noncontrolling interests in the
Consolidated Balance Sheet. The $0.1 billion difference between the noncontrolling interest recognized
and the fair value of Aker’s net assets acquired less the fair value of the SLB shares of common stock
issued to Aker was recorded as an increase to Common stock in the Consolidated Balance Sheet.
The following amounts represent the preliminary estimates of the fair value of assets acquired and
liabilities assumed in connection with the formation of the joint venture. The final determination of fair
value for certain assets and liabilities will be completed as soon as the information necessary to
53
complete the analysis is obtained. These amounts, which may differ materially from these preliminary
estimates, will be finalized as soon as possible, but no later than one year from the acquisition date.
(Stated in millions)
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets (weighted average life of 18 years) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts payable and accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total identifiable net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Goodwill (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
355
192
237
168
390
(915)
(127)
(1)
347
966
Total consideration transferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
1,313
(1) SLB recorded an adjustment of $54 million to write-up the acquired inventory to its estimated fair value.
SLB’s Cost of sales will reflect this increased valuation as the acquired inventory is sold. $11 million of
this adjustment was expensed as of December 31, 2023. See Note 3 – Charges and Credits.
(2) The goodwill recognized is primarily attributable to intangible assets that do not qualify for
separate recognition as well as expected synergies from combining the subsea operations of SLB
and Aker. None of the goodwill is deductible for income tax purposes.
For the period from October 2, 2023 to December 31, 2023, the subsea business acquired from Aker
contributed revenue of approximately $0.5 billion. The acquired Aker subsea business’ contribution to
Net income attributable to SLB for the same period was not material.
Aker reported revenue for its subsea business of approximately $1.5 billion for the year ended
December 31, 2022 and $1.4 billion for the nine months ended September 30, 2023. Assuming SLB
had acquired Aker’s subsea business as of January 1, 2022, Net income attributable to SLB and
diluted earnings per share on a pro forma basis would not be materially different from SLB’s reported
results for the years ended December 31, 2023 and 2022, respectively.
7. Goodwill
The changes in the carrying amount of goodwill by segment were as follows:
Digital &
Integration
Reservoir
Performance
Well
Construction
Production
Systems
Total
(Stated in millions)
Balance, December 31, 2021 . . $
Other . . . . . . . . . . . . . . . . . . . . . .
Balance, December 31, 2022 . .
Acquisitions . . . . . . . . . . . . . . . . .
2,052 $
(8)
2,044
-
3,804 $
6,281 $
-
3,804
-
-
6,281
136
853 $
-
853
966
12,990
(8)
12,982
1,102
Balance, December 31, 2023 . . $
2,044 $
3,804 $
6,417 $
1,819 $
14,084
54
8. Intangible Assets
Intangible assets consist of the following:
2023
2022
Gross
Book Value
Accumulated
Amortization
Net Book
Value
Gross
Book Value
Accumulated
Amortization
Net Book
Value
(Stated in millions)
Customer Relationships . . . . . . . . . . $
Technology/Technical Know-How . .
Tradenames . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . .
1,887 $
1,516
795
1,582
709 $
770
265
797
1,178 $
746
530
785
1,680 $
1,280
767
1,657
631 $
676
222
863
1,049
604
545
794
$
5,780 $
2,541 $
3,239 $
5,384 $
2,392 $
2,992
Customer relationships are generally amortized over periods ranging from 18 to 28 years, technology/
technical know-how are generally amortized over periods ranging from 10 to 18 years, and tradenames
are generally amortized over periods ranging from 15 to 30 years.
Amortization expense was $314 million in 2023, $301 million in 2022, and $302 million in 2021.
Based on the carrying value of intangible assets at December 31, 2023, amortization expense for the
subsequent five years is estimated to be as follows: 2024: $308 million, 2025: $304 million, 2026:
$296 million, 2027: $292 million and 2028: $283 million.
9. Long-term Debt and Debt Facility Agreements
Long-term Debt consists of the following:
3.90% Senior Notes due 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2.65% Senior Notes due 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.375% Guaranteed Notes due 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.00% Guaranteed Notes due 2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.25% Notes due 2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.50% Notes due 2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.30% Senior Notes due 2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.00% Guaranteed Notes due 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.00% Senior Notes due 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.40% Senior Notes due 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.50% Senior Notes due 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.85% Senior Notes due 2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.00% Notes due 2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.95% Notes due 2041 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.13% Notes due 2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.00% Notes due 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.75% Senior Notes due 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.70% Notes due 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Stated in millions)
2023
2022
1,469 $
1,250
1,104
1,098
994
992
847
662
523
499
497
497
200
112
98
-
-
-
1,464
1,250
1,061
1,055
955
954
847
635
522
499
-
-
202
112
98
531
355
54
$
10,842 $
10,594
55
At December 31, 2023, SLB had committed credit
facility agreements with commercial banks
aggregating $5.0 billion, all of which was available and unused. These committed facilities support
commercial paper programs in the United States and Europe, of which $2.0 billion matures in February
2027 and $3.0 billion in December 2028.
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. There were no borrowings under
the commercial paper programs at December 31, 2023 and December 31, 2022, respectively.
Long-term Debt as of December 31, 2023 is due as follows: $1.0 billion in 2025, $1.8 billion in 2026,
$1.0 billion in 2027, $2.0 billion in 2028, $0.8 billion in 2029 and $4.2 billion thereafter.
The fair value of SLB’s Long-term Debt at December 31, 2023 and December 31, 2022 was
$10.2 billion and $9.4 billion, respectively, and was estimated based on quoted market prices.
its
Schlumberger Limited fully and unconditionally guarantees the securities issued by certain of
subsidiaries, including securities issued by Schlumberger Investment SA and Schlumberger Finance
Canada Ltd., both indirect wholly-owned subsidiaries of Schlumberger Limited.
10. Derivative Instruments and Hedging Activities
SLB’s functional currency is primarily the US dollar. Approximately 72% of SLB’s revenues in 2023
were denominated in US dollars. 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 December 31, 2023,
were as follows:
(cid:129)
(cid:129)
During 2019, a US-dollar functional currency subsidiary of SLB issued €1.5 billion of Euro-
denominated debt. SLB entered into cross-currency interest rate swaps in order to hedge
changes in the fair value of its €0.5 billion 0.00% Notes due 2024, €0.5 billion 0.25% Notes due
2027, and €0.5 billion 0.50% Notes due 2031. These cross-currency interest rate swaps
effectively convert
the Euro-denominated notes to US-dollar denominated debt with fixed
annual interest rates of 2.29%, 2.51% and 2.76%, respectively.
During 2020, a US-dollar functional currency subsidiary of SLB issued €0.8 billion of Euro-
denominated debt. SLB entered into cross-currency interest rate swaps to hedge changes in
the fair value of its €0.4 billion of 0.25% Notes due 2027 and €0.4 billion of 0.50% Notes due
2031. These cross-currency interest rate swaps effectively convert
the Euro-denominated
interest rates of 1.87% and 2.20%,
notes to US-dollar denominated debt with fixed annual
respectively.
56
(cid:129)
(cid:129)
During 2020, a US-dollar functional currency subsidiary of SLB issued €2.0 billion of Euro-
denominated debt. SLB entered into cross-currency interest rate swaps to hedge changes in
the fair value of its €1.0 billion of 1.375% Guaranteed Notes due 2026 and €1.0 billion of 2.00%
Guaranteed Notes due 2032. These cross-currency interest rate swaps effectively convert the
Euro-denominated notes to US-dollar denominated debt with fixed annual
interest rates of
2.77% and 3.49%, respectively.
During 2020, a Canadian dollar functional currency subsidiary of SLB issued $0.5 billion of US
dollar denominated debt. SLB entered into cross-currency interest rate swaps to hedge
changes in the fair value of its $0.5 billion 1.40% Senior Notes due 2025. These cross-
currency interest rate swaps effectively convert
the US dollar notes to Canadian dollar
denominated debt with a fixed annual interest rate of 1.73%.
A summary of the amounts included in the Consolidated Balance Sheet relating to cross currency
interest rate swaps follows:
(Stated in millions)
Dec. 31, 2023 Dec. 31, 2022
Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Other Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
36 $
67 $
1
326
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 had derivative contracts in place that hedged the price of oil related to approximately 75% of the
projected oil production for each of 2023 and 2022 for one of its APS projects. During 2023, SLB
entered into derivative contracts that hedge the price of oil relating to approximately 75% of the
projected oil production for the first six months of 2024; approximately 65% for the third quarter of
2024; and approximately 30% of the projected oil production for the fourth quarter 2024 for the same
project. These contracts are accounted for as cash flow hedges, with changes in the fair value of the
hedge recorded in Accumulated other comprehensive loss. Amounts recorded in Accumulated other
comprehensive loss are reclassified to earnings in the same period or periods that the hedged item is
recognized in earnings.
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. Transaction losses of $154 million in 2023
(including $90 million related to the Argentina devaluation in 2023; see Note 3 – Charges and credits
for further details), $96 million in 2022, and $23 million in 2021 were recognized in the Consolidated
Statement of Income net of related hedging activities.
Foreign currency forward contracts were outstanding for the US dollar equivalent of $5.4 billion and
$2.1 billion in various foreign currencies as of December 31, 2023 and 2022, respectively.
57
Other than the previously mentioned cross-currency interest rate swaps, the fair value of the other
outstanding derivatives was not material as of December 31, 2023 and 2022.
The effect of derivative instruments designated as hedges and those not designated as hedges on the
Consolidated Statement of Income was as follows:
(Stated in millions)
Gain (Loss) Recognized
in Income
2023
2022
2021
Consolidated Statement
of Income Classification
Derivatives designated as cash flow hedges:
Cross-currency interest rate swaps . . . . . . . . . $
Cross-currency interest rate swaps . . . . . . . . .
Commodity contracts . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . .
173 $ (254) $ (422) Cost of services/sales
(88)
3
15
- Revenue
5 Cost of services/sales
Interest expense
(88)
(87)
(30)
(83)
Derivatives not designated as hedges:
Foreign exchange contracts . . . . . . . . . . . . . . . $
(9) $
42 $
(11) Cost of services/sales
$
103 $ (459) $ (500)
During the fourth quarter of 2023, SLB issued a credit default swap (“CDS”) for a notional amount of
$275 million to a third-party financial institution. The CDS relates to a secured borrowing provided by
the financial institution to SLB’s primary customer in Mexico. The secured borrowing was utilized by
this customer to pay certain of SLB’s outstanding receivables. The notional amount of the CDS, which
was increased to $560 million in January 2024, will reduce on a monthly basis over its 26-month term.
The fair value of this derivative liability was not material at December 31, 2023.
11. Stockholders’ Equity
SLB is authorized to issue 4,500,000,000 shares of common stock, par value $0.01 per share, of which
1,427,394,843 and 1,420,188,492 shares were outstanding on December 31, 2023 and 2022,
respectively. Holders of common stock are entitled to one vote for each share of stock held. SLB is
also authorized to issue 200,000,000 shares of preferred stock, par value $0.01 per share, which may
be issued in series with terms and conditions determined by the SLB Board of Directors. No shares of
preferred stock have been issued.
Accumulated Other Comprehensive Loss consists of the following:
(Stated in millions)
2023
2022
2021
Currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . $
Pension and other postretirement benefit plans . . . . . . . . . . . .
Cash flow hedges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other
(2,557) $
(1,709)
42
(30)
(2,444) $
(1,295)
(116)
-
(2,419)
(1,066)
(85)
-
$
(4,254) $
(3,855) $
(3,570)
12. Stock-based Compensation Plans
(i) a restricted stock unit and
SLB has three types of stock-based compensation programs:
performance share unit program (collectively referred to as “restricted stock”), (ii) a discounted stock
purchase plan (“DSPP”), and (iii) stock options.
58
Restricted Stock
SLB grants performance share units to certain key employees. The number of shares earned is
determined at the end of each performance period based on SLB’s achievement of certain predefined
targets as described in the underlying performance share unit agreement. In the event SLB exceeds
the predefined target, shares for up to a maximum of 250% of the target award may be awarded. In the
event SLB falls below the predefined target, a reduced number of shares may be awarded. If SLB falls
below the threshold award performance level, no shares will be awarded. As of December 31, 2023,
3.2 million performance share units were outstanding assuming the achievement of 100% of target.
All other restricted stock awards generally vest at the end of three years or vest ratably in equal
tranches over a three-year period.
Restricted stock awards do not pay dividends or have voting rights prior to vesting. Accordingly, the fair
value of a restricted stock award is generally the quoted market price of SLB’s stock on the date of
grant less the present value of the expected dividends not received prior to vesting.
The following table summarizes information related to restricted stock activity:
(Shares stated in millions)
2023
2022
2021
Weighted-
Average
Grant
Date Fair
Value
Weighted-
Average
Grant
Date Fair
Value
Restricted
Stock
Weighted-
Average
Grant
Date Fair
Value
Restricted
Stock
Restricted
Stock
Unvested at beginning of year
. . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments for performance achieved . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 $
5 $
2 $
(11) $
30.24
56.24
32.47
29.82
22 $
7 $
2 $
(13) $
29.03
36.16
35.55
32.42
19 $
8 $
- $
(5) $
35.24
25.16
-
48.44
Unvested at year-end . . . . . . . . . . . . . . . . . .
14 $
39.88
18 $
30.24
22 $
29.03
Discounted Stock Purchase Plan
Under the terms of the DSPP, employees can choose to have a portion of their earnings withheld,
subject to certain restrictions, to purchase SLB common stock. Until July 1, 2022, the purchase price of
the stock was 92.5% of the lower of the stock price at the beginning or end of the plan period at
six-month intervals. Effective July 1, 2022, the purchase price of the stock was changed to 85% of the
lower of the stock price at the beginning or end of the plan period at six-month intervals.
The fair value of the employees’ purchase rights under the DSPP was estimated using the Black-
Scholes model with the following assumptions and resulting weighted-average fair value per share:
Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted-average fair value per share . . . . . . . . . . . . . . . . . . . . . $
1.7%
50%
5.13%
14.93 $
1.8%
47%
1.32%
8.05 $
2.0%
67%
0.07%
6.72
2023
2022
2021
59
Stock Options
Key employees may be granted stock options under SLB stock option plans. The exercise price equals
the average of the high and low sales prices of SLB stock on the date of grant. The maximum term is
10 years, and the options generally vest in increments over five years.
The following table summarizes stock option activity:
(Shares stated in millions)
2023
2022
2021
Weighted-
Average
Exercise
Price
Shares
Weighted-
Average
Exercise
Price
Shares
Weighted-
Average
Exercise
Price
Shares
Outstanding at beginning of year . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited / Expired . . . . . . . . . . . . . . . . . .
35 $
(2) $
(5) $
70.31
40.02
73.18
42 $
(2) $
(5) $
68.95
40.04
71.45
48 $
-
$
(6) $
70.37
-
80.46
Outstanding at year-end . . . . . . . . . . . . .
28 $
72.33
35 $
70.31
42 $
68.95
The following table summarizes information related to options outstanding and options exercisable as
of December 31, 2023:
(Shares stated in millions)
Options Outstanding
Options Exercisable
Weighted-
Average
Remaining
Life
(in years)
Weighted-
Average
Exercise
Price
Weighted-
Average
Exercise
Price
Options
Exercisable
Options
Outstanding
7
7
8
6
28
5.6 $
2.3 $
2.3 $
0.8 $
2.9 $
39.76
71.46
84.44
96.31
72.33
4 $
6 $
8 $
6 $
24 $
40.08
71.49
84.44
96.31
77.21
Exercise prices range
$38.75 - $41.47 . . . . . . . . . . . . . . .
$47.55 - $79.85 . . . . . . . . . . . . . . .
$80.53 - $88.77 . . . . . . . . . . . . . . .
$91.28 - $114.83 . . . . . . . . . . . . . .
The weighted-average remaining contractual life of stock options exercisable as of December 31, 2023
was 2.4 years.
The aggregate intrinsic value of stock options outstanding and stock options exercisable as of
December 31, 2023 was $90 million and $44 million, respectively.
60
Total Stock-based Compensation Expense
The following summarizes stock-based compensation expense recognized in income:
Restricted stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
DSPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
(Stated in millions)
2023
2022
2021
225 $
56
12
293 $
255 $
41
17
313 $
254
34
36
324
At December 31, 2023, there was $278 million of total unrecognized compensation cost related to
nonvested stock-based compensation arrangements, of which $164 million is expected to be
recognized in 2024, $89 million in 2025, $21 million in 2026, and $4 million in 2027.
As of December 31, 2023, approximately 24 million shares of SLB common stock were available for
future grants under SLB’s stock-based compensation programs.
13. Income Taxes
Income before taxes subject to United States and non-United States income taxes was as follows:
(Stated in millions)
2023
2022
2021
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Outside United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
355 $
600 $
4,927
3,671
$
5,282 $
4,271 $
30
2,344
2,374
SLB recorded net pretax charges of $110 million in 2023 ($2 million of net credits in the US and
$112 million of charges outside the US); $347 million in 2022 ($379 million of net credits in the US and
$32 million of net charges outside the US); and net pretax credits of $65 million in 2021 ($75 million of
credits in the US and $10 million of charges outside the US). These charges and credits are included in
the table above and are more fully described in Note 3 – Charges and Credits.
The components of net deferred tax liabilities were as follows:
(Stated in millions)
2023
2022
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Net operating losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and development credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capitalized research and development costs . . . . . . . . . . . . . . . . . . . . . . . . .
Pension and other postretirement benefits . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(844) $
214
190
162
155
(94)
77
$
(140) $
(780)
326
101
129
72
(114)
205
(61)
61
Approximately $194 million of the $214 million deferred tax asset relating to net operating losses at
December 31, 2023 can be carried forward indefinitely. The majority of the remaining balance expires
at various dates between 2032 and 2041.
The deferred tax balance at December 31, 2023 and 2022 was net of valuation allowances relating to
the following:
(Stated in millions)
2023
2022
Foreign tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Net operating losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
188 $
106 $
181
111
The components of Tax expense were as follows:
(Stated in millions)
2023
2022
2021
Current:
United States-Federal
United States-State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Outside United States . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Deferred:
United States-Federal
United States-State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Outside United States . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . $
(23) $
5
997
979
(77) $
6
104
(5)
28
$
1,007 $
2 $
3
813
818
98 $
13
(70)
(80)
(39)
779 $
(32)
-
509
477
(132)
12
(15)
104
(31)
446
A reconciliation of the United States statutory federal tax rate to the consolidated effective tax rate
follows:
US federal statutory rate . . . . . . . . . . . . . . . . . . . . . . . . . .
Charges and credits (See Note 3)
. . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2023
2022
2021
21%
—
(2)
19%
21%
(1)
(2)
18%
21%
—
(2)
19%
A number of the jurisdictions in which SLB operates have tax laws that are not fully defined and are
evolving. SLB’s tax filings are subject to regular audit by the tax authorities. These audits may result in
assessments for additional taxes that are resolved with the tax authorities or, potentially, through the
courts. Tax liabilities are recorded based on estimates of additional taxes that will be due upon the
conclusion of these audits. Due to the uncertain and complex application of tax regulations, the
ultimate resolution of audits may result in liabilities which could be materially different from these
estimates.
62
A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions
is as follows:
(Stated in millions)
2023
2022
2021
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Additions based on tax positions related to the current year . . . .
Additions for tax positions of prior years . . . . . . . . . . . . . . . . . . . .
Impact of changes in exchange rates . . . . . . . . . . . . . . . . . . . . . .
Settlements with tax authorities . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reductions for tax positions of prior years . . . . . . . . . . . . . . . . . .
Reductions due to the lapse of statute of limitations . . . . . . . . . .
893 $
66
91
(25)
(36)
(176)
(30)
1,001 $
41
64
(38)
(37)
(94)
(44)
$
783 $
893 $
1,271
38
19
(24)
(49)
(228)
(26)
1,001
The amounts above exclude accrued interest and penalties of $155 million at both December 31, 2023
and 2022, and $164 million at December 31, 2021, respectively. SLB classifies interest and penalties
relating to uncertain tax positions within Tax expense in the Consolidated Statement of Income.
The following table summarizes the tax years that are either currently under audit or remain open and
subject to examination by the tax authorities in the most significant jurisdictions in which SLB operates:
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017 - 2023
Ecuador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2019 - 2023
Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2016 - 2023
Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018 - 2023
Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2021 - 2023
Saudi Arabia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2016 - 2023
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017 - 2023
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2020 - 2023
63
14. Leases
SLB’s leasing activities primarily consist of operating leases for administrative offices, manufacturing
facilities, research centers, service centers, sales offices, and certain equipment. Total operating lease
expense, which approximates cash paid and includes short-term leases, was $1.4 billion in 2023 and
$1.2 billion in both 2022 and 2021.
Maturities of operating lease liabilities as of December 31, 2023 were as follows:
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Stated in millions)
208
170
117
98
80
271
Total lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Less: Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
Amounts recognized in balance sheet:
Accounts payable and accrued liabilities . . . . . . . . . . . . . . . . $
Other Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
944
(134)
810
201
609
810
The weighted-average remaining lease term as of December 31, 2023 was 9 years. The weighted-
average discount rate used to determine the operating lease liability as of December 31, 2023
was 3.6%.
15. 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.
16. Segment Information
SLB is organized under four Divisions that combine and integrate SLB’s technologies, enhancing the
Company’s ability to support the emerging long-term growth opportunities in each of these market
segments.
The four Divisions, representing SLB’s segments, are:
(cid:129)
(cid:129)
Digital & Integration – Combines SLB’s industry-leading digital solutions and data products
with its integrated offering of Asset Performance Solutions.
Reservoir Performance – Consists of reservoir-centric technologies and services that are
critical to optimizing reservoir productivity and performance.
(cid:129) Well Construction – Combines the full portfolio of products and services to optimize well
placement and performance, maximize drilling efficiency, and improve wellbore assurance.
Production Systems – Develops technologies and provides expertise that enhance production
and recovery from subsurface reservoirs to the surface, into pipelines, and to refineries.
(cid:129)
64
Financial information by segment is as follows:
Revenue
Pretax
Income
Digital & Integration . . . . . . . . . . . . . . . . . . . . $
Reservoir Performance . . . . . . . . . . . . . . . . . .
Well Construction . . . . . . . . . . . . . . . . . . . . . .
Production Systems . . . . . . . . . . . . . . . . . . . .
Eliminations & other . . . . . . . . . . . . . . . . . . . .
3,871 $
6,561
13,478
9,831
(606)
Pretax segment operating income . . . . .
Goodwill and intangible assets . . . . . . . . . . .
Cash and short-term investments . . . . . . . . .
All other assets . . . . . . . . . . . . . . . . . . . . . . . .
Corporate & other (1) . . . . . . . . . . . . . . . . . . . .
Interest income (2) . . . . . . . . . . . . . . . . . . . . . .
Interest expense (3) . . . . . . . . . . . . . . . . . . . . .
Charges & credits (4) . . . . . . . . . . . . . . . . . . . .
1,257 $
1,263
2,932
1,245
(174)
6,523
(729)
87
(489)
(110)
(Stated in millions)
2023
Assets
Depreciation
and
Amortization
Capital
Investments
660
514
908
384
133
3,089 $
3,491
7,129
6,640
1,352
17,323
3,989
4,944
578 $
387
587
325
277
158
$
33,135 $
5,282 $
47,957 $
2,312 $
2,599
Revenue
Pretax
Income
Digital & Integration . . . . . . . . . . . . . . . . . . . . $
Reservoir Performance . . . . . . . . . . . . . . . . . .
Well Construction . . . . . . . . . . . . . . . . . . . . . .
Production Systems . . . . . . . . . . . . . . . . . . . .
Eliminations & other . . . . . . . . . . . . . . . . . . . .
3,725 $
5,553
11,397
7,862
(446)
Pretax segment operating income . . . . .
Goodwill and intangible assets . . . . . . . . . . .
Cash and short-term investments . . . . . . . . .
All other assets . . . . . . . . . . . . . . . . . . . . . . . .
Corporate & other (1) . . . . . . . . . . . . . . . . . . . .
Interest income (2) . . . . . . . . . . . . . . . . . . . . . .
Interest expense (3) . . . . . . . . . . . . . . . . . . . . .
Charges & credits (4) . . . . . . . . . . . . . . . . . . . .
1,357 $
881
2,202
748
(177)
5,011
(637)
27
(477)
347
(Stated in millions)
2022
Assets
Depreciation
and
Amortization
Capital
Investments
689
478
687
346
102
3,132 $
3,159
6,481
5,603
1,426
15,974
2,897
4,463
504 $
386
524
311
271
151
$
28,091 $
4,271 $
43,135 $
2,147 $
2,302
65
Revenue
Pretax
Income
Digital & Integration . . . . . . . . . . . . . . . . . . . $
Reservoir Performance . . . . . . . . . . . . . . . .
Well Construction . . . . . . . . . . . . . . . . . . . .
Production Systems . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
Eliminations & other
3,290 $
4,599
8,706
6,710
(376)
Pretax segment operating income . . .
Goodwill and intangible assets . . . . . . . . . .
Cash and short-term investments . . . . . . .
All other assets . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
Corporate & other (1)
. . . . . . . . . . . . . . . . . . . .
Interest income (2)
. . . . . . . . . . . . . . . . . . .
Interest expense (3)
. . . . . . . . . . . . . . . . . .
Charges & credits (4)
1,141 $
648
1,195
634
(253)
3,365
(573)
31
(514)
65
(Stated in millions)
2021
Assets
Depreciation
and
Amortization
Capital
Investments
516
348
424
267
99
3,134 $
2,923
4,714
4,684
1,501
16,201
3,139
5,215
446 $
415
537
302
269
151
$
22,929 $
2,374 $
41,511 $
2,120 $
1,654
(1) Comprised principally of certain corporate expenses not allocated to the segments, stock-based
compensation costs, amortization expense associated with certain intangible assets, certain centrally
managed initiatives and other nonoperating items.
(2)
(3)
Interest income excludes amounts which are included in the segments’
$72 million; 2021: $2 million).
income (2023: $12 million; 2022:
Interest expense excludes amounts which are included in the segments’ income (2023: $14 million; 2022:
$13 million; 2021: $15 million) and $10 million interest expense included in Charges and credits in 2021.
(4) See Note 3 – Charges and Credits.
Segment assets consist of
investments.
receivables,
inventories,
fixed assets, exploration data, and APS
Capital
capitalized.
investments includes capital expenditures, APS investments, and exploration data cost
Depreciation and amortization includes depreciation of fixed assets and amortization of intangible
assets, exploration data costs, and APS investments.
66
Revenue by geographic area for the years ended December 31, 2023, 2022, and 2021 was as follows:
(Stated in millions)
2023
2022
2021
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Latin America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe & Africa * . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Middle East & Asia . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eliminations & other . . . . . . . . . . . . . . . . . . . . . . . . . .
6,727 $
6,645
8,524
11,019
220
5,995 $
5,661
7,201
9,033
201
4,466
4,459
5,778
8,059
167
$
33,135 $
28,091 $
22,929
* Includes Russia and the Caspian region
Revenue is based on the location where services are provided and products are sold.
During each of the three years ended December 31, 2023, 2022, and 2021, no single customer
exceeded 10% of consolidated revenue.
SLB did not have revenue from third-party customers in its country of domicile during the last three
years. Revenue in the United States in 2023, 2022, and 2021 was $5.4 billion, $4.6 billion, and
$3.4 billion, respectively.
North America and International revenue disaggregated by segment was as follows:
(Stated in millions)
2023
North
America
International
Other
Total
Digital & Integration . . . . . . . . . . . . . . . . . . . $
Reservoir Performance . . . . . . . . . . . . . . . .
Well Construction . . . . . . . . . . . . . . . . . . . . .
Production Systems . . . . . . . . . . . . . . . . . . .
Eliminations & other . . . . . . . . . . . . . . . . . . .
984 $
498
2,709
2,598
(62)
2,881 $
6,057
10,530
7,219
(499)
6 $
6
239
14
(45)
3,871
6,561
13,478
9,831
(606)
$
6,727 $
26,188 $
220 $
33,135
(Stated in millions)
2022
North
America
International
Other
Total
Digital & Integration . . . . . . . . . . . . . . . . . . . $
Reservoir Performance . . . . . . . . . . . . . . . .
Well Construction . . . . . . . . . . . . . . . . . . . . .
Production Systems . . . . . . . . . . . . . . . . . . .
Eliminations & other . . . . . . . . . . . . . . . . . . .
1,069 $
455
2,311
2,176
(16)
2,651 $
5,091
8,875
5,675
(397)
5 $
7
211
11
(33)
3,725
5,553
11,397
7,862
(446)
$
5,995 $
21,895 $
201 $
28,091
67
(Stated in millions)
2021
North
America
International
Other
Total
Digital & Integration . . . . . . . . . . . . . . . . . . . $
Reservoir Performance . . . . . . . . . . . . . . . .
Well Construction . . . . . . . . . . . . . . . . . . . . .
Production Systems . . . . . . . . . . . . . . . . . . .
Eliminations & other . . . . . . . . . . . . . . . . . . .
812 $
329
1,485
1,832
8
2,474 $
4,266
7,025
4,865
(334)
4 $
4
196
13
(50)
3,290
4,599
8,706
6,710
(376)
$
4,466 $
18,296 $
167 $
22,929
Fixed Assets less accumulated depreciation by geographic area was as follows:
(Stated in millions)
2023
2022
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Latin America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe & Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Middle East & Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unallocated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,469 $
1,071
1,724
2,468
508
$
7,240 $
1,459
913
1,668
2,099
468
6,607
17. Pension and Other Postretirement Benefit Plans
Pension Plans
SLB sponsors several defined benefit pension plans that cover substantially all US employees hired
prior to October 1, 2004. The benefits are based on years of service and compensation, on a career-
average pay basis.
In addition to the US defined benefit pension plans, SLB sponsors several other international defined
benefit pension plans. The most significant of these international plans are the International Staff
Pension Plan and the UK pension plan (collectively, the “International plans”). The International Staff
Pension Plan covers certain international employees hired prior to July 1, 2014 and is based on years
of service and compensation on a career-average pay basis. The UK plan covers employees hired
prior to April 1, 1999, and is based on years of service and compensation, on a final salary basis.
The weighted-average assumed discount rate, compensation increases and expected long-term rate of
return on plan assets used to determine the net pension cost for the US and International plans were
as follows:
Discount rate . . . . . . . . . . . . . . .
Compensation increases . . . . . .
Return on plan assets . . . . . . . .
2023
5.50%
4.00%
6.00%
US
2022
3.00%
4.00%
4.40%
68
International
2021
2023
2022
2021
2.60%
4.00%
6.60%
5.41%
4.84%
6.00%
2.83%
4.83%
5.05%
2.38%
4.82%
6.73%
Net pension cost (credit) included the following components:
(Stated in millions)
US
2022
2023
2021
2023
International
2022
2021
Service cost . . . . . . . . . . . . . . . . . . . . . . $
Interest cost . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . .
Amortization of net loss . . . . . . . . . . . .
23 $
37 $
44 $
54 $
178
(198)
-
137
(202)
5
127
(254)
44
407
(607)
-
101 $
298
(530)
80
117
267
(640)
227
$
3 $
(23) $
(39) $
(146) $
(51) $
(29)
The weighted-average assumed discount rate and compensation increases used to determine the
projected benefit obligations for the US and International plans were as follows:
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Compensation increases . . . . . . . . . . . . . . . . . . . . . . . . .
5.25%
4.00%
5.50%
4.00%
5.14%
4.84%
5.41%
4.84%
US
International
2023
2022
2023
2022
69
The changes in the projected benefit obligation, plan assets and funded status of the plans were as
follows:
(Stated in millions)
US
International
2023
2022
2023
2022
Change in Projected Benefit Obligations:
Projected benefit obligation at beginning of year . . . . . $
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service cost
Interest cost
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution by plan participants . . . . . . . . . . . . . . . . . .
Actuarial losses (gains) . . . . . . . . . . . . . . . . . . . . . . . . .
Currency effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,315 $
23
178
—
117
—
(220)
—
4,668 $
37
137
—
(1,152)
—
(375)
—
7,598 $ 10,618
101
298
47
(3,140)
(148)
(363)
185
54
407
52
302
56
(360)
—
Projected benefit obligation at end of year . . . . . . . . . . $
3,413 $
3,315 $
8,109 $
7,598
Change in Plan Assets:
Plan assets at fair value at beginning of year . . . . . . . . $
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . .
Currency effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Company contributions . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions by plan participants . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,396 $
242
—
4,696 $
(933)
—
9
—
(220)
—
8
—
(375)
—
8,126 $ 11,221
(2,834)
(188)
18
47
(363)
225
494
71
7
52
(360)
—
Plan assets at fair value at end of year . . . . . . . . . . . . . $
3,427 $
3,396 $
8,390 $
8,126
Asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
14 $
81 $
281 $
528
Amounts Recognized in Balance Sheet:
Postretirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . $
Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(159) $
173
(151) $
232
(16) $
297
$
14 $
81 $
281 $
(14)
542
528
Amounts Recognized in Accumulated Other
Comprehensive Loss:
Actuarial losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
328 $
255 $
1,804 $
1,366
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . $
3,313 $
3,221 $
7,942 $
7,454
The asset represents the difference between the plan assets and the projected benefit obligation
(“PBO”). The PBO represents the actuarial present value of benefits based on employee service and
compensation and includes an assumption about future compensation levels. The accumulated benefit
obligation represents the actuarial present value of benefits based on employee service and
compensation but does not include an assumption about future compensation levels.
Actuarial gains and losses arising during 2023 and 2022 were primarily attributable to changes in the
discount rate used to determine the PBO.
70
The weighted-average allocation of plan assets as of December 31, 2023 and 2022 and the target
allocations by asset category as of December 31, 2023 were as follows:
Cash and cash equivalents . . . . . . . . . . .
Equity securities . . . . . . . . . . . . . . . . . . . .
Debt securities . . . . . . . . . . . . . . . . . . . . .
Private equity and real estate . . . . . . . . .
Private debt . . . . . . . . . . . . . . . . . . . . . . . .
Target
0 - 3%
0 - 5
80 - 90
5 - 12
2 - 8
US
2023
International
2022
Target
2023
2022
1%
-
84
10
5
2% 0 - 5%
-
0 - 5
83 60 - 70
11 15 - 20
9 - 15
4
3%
1
69
17
10
2%
10
56
19
13
100%
100%
100% 100%
100%
100%
The expected rate of return on assets assumptions reflect
the long-term average rate of return
expected to be earned on plan assets. The assumptions have been determined based on expectations
regarding future rates of return for the portfolio considering the asset allocation and related historical
rates of return. The appropriateness of the assumptions is reviewed annually.
The fair value of SLB’s pension plan assets at December 31, 2023 and 2022, by asset category, is
presented below and was determined based on valuation techniques categorized as follows:
(cid:129)
(cid:129)
Level One: The use of quoted prices in active markets for identical instruments.
Level Two: The use of quoted prices for similar instruments in active markets or quoted prices
for identical or similar instruments in markets that are not active or other inputs that are
observable in the market or can be corroborated by observable market data.
71
(cid:129)
Level Three: The use of significant unobservable inputs that
management’s estimates of assumptions that market participants would use in pricing.
typically require the use of
US Plan Assets
2023
2022
(Stated in millions)
Total
Level
One
Level
Two
Level
Three
Total
Level
One
Level
Two
Level
Three
Asset Category:
Cash and Cash Equivalents . . . . . . . . . . . . . . . $
Equity Securities:
US . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt Securities:
Corporate bonds . . . . . . . . . . . . . . . . . . . . . .
Government and related debt securities . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other
Alternative Investments:
Private equity . . . . . . . . . . . . . . . . . . . . . . . . .
Private debt . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . .
33 $
33 $
- $
- $
81 $
77 $
4 $
6
-
1,540
1,334
12
287
148
67
-
-
-
163
-
-
-
-
6
-
1,540
1,171
12
-
--
-
-
-
-
-
-
287
148
67
3
-
-
-
3
-
1,775
1,014
29
291
124
79
-
157
-
1,775
857
29
-
-
-
-
-
-
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,427 $
196 $ 2,729 $
502 $ 3,396 $
234 $ 2,668 $
-
-
-
-
-
291
124
79
494
International Plan Assets
2023
2022
(Stated in millions)
Total
Level
One
Level
Two
Level
Three
Total
Level
One
Level
Two
Level
Three
Asset Category:
Cash and Cash Equivalents . . . . . . . . . . . . . . . $
Equity Securities:
US . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt Securities:
Corporate bonds . . . . . . . . . . . . . . . . . . . . . .
Government and related debt securities . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other
Alternative Investments:
Private equity . . . . . . . . . . . . . . . . . . . . . . . . .
Private debt . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . .
267 $
260 $
7 $
- $
170 $
163 $
7 $
84
38
3,001
2,466
292
1,269
805
168
84
38
-
563
-
-
-
-
-
-
3,001
1,903
292
-
-
-
-
-
-
-
-
1,269
805
168
580
273
2,224
2,283
13
1,362
1,041
180
497
273
-
336
-
-
-
-
83
-
2,224
1,947
13
-
-
-
1,362
1,041
180
-
-
-
-
-
-
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,390 $
945 $ 5,203 $ 2,242 $ 8,126 $ 1,269 $ 4,274 $ 2,583
SLB’s funding policy is to contribute amounts that are based upon a number of factors including the
funded status of
funding
requirements, and available cash flow. SLB does not expect to make any material contributions to its
postretirement benefit plans in 2024.
the plans, amounts that are deductible for income tax purposes,
legal
Postretirement Benefits Other Than Pensions
SLB provides healthcare benefits to certain former US employees who have retired.
72
The actuarial assumptions used to determine the accumulated postretirement benefit obligation and
net periodic benefit cost for the US postretirement medical plan were as follows:
Benefit Obligation
At December 31,
Net Periodic Benefit
Cost for the Year
2023
2022
2023
2022
2021
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . .
Current medical cost trend rate . . . . . . . . . . . . . . . . .
Ultimate medical cost trend rate . . . . . . . . . . . . . . . .
Year that the rate reaches the ultimate trend rate . .
-
-
5.25% 5.50% 5.50% 3.00% 2.60%
4.41% 2.94% 6.21%
7.50% 7.50% 7.50% 6.75% 7.00%
4.50% 4.50% 4.50% 4.50% 4.50%
2031
2035
2031
2035
2035
The net credit for the US postretirement medical plan included the following components:
(Stated in millions)
2023
2022
2021
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service credit . . . . . . . . . . . . . . . . . . . . .
Amortization of net gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16 $
42
(41)
(23)
(12)
23 $
33
(38)
(23)
(10)
28
32
(73)
(23)
-
$
(18) $
(15) $
(36)
73
The changes in the accumulated postretirement benefit obligation, plan assets and funded status were
as follows:
(Stated in millions)
2023
2022
Change in Accumulated Postretirement Benefit Obligation:
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service cost
Interest cost
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution by plan participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
808 $
16
42
7
(7)
(61)
1,146
23
33
9
(338)
(65)
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
805 $
808
Change in Plan Assets:
Plan assets at fair value at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions by plan participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan assets at fair value at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Amounts Recognized in Accumulated Other Comprehensive Loss:
Actuarial gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Prior service credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
938 $
87
7
(68)
964 $
159 $
239 $
36
$
275 $
1,318
(323)
8
(65)
938
130
199
59
258
The asset balance relating to this plan was included in Other Assets in the Consolidated Balance
Sheet.
The assets of the US postretirement medical plan are invested 87% in debt securities and 13% in
equity securities at December 31, 2023. The fair value of these assets was primarily determined based
on Level Two valuation techniques.
Other Information
The expected benefits to be paid under the US and International pension plans as well as the
postretirement medical plan are as follows:
(Stated in millions)
Pension Plans
US
International
Postretirement
Medical Plan
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2029-2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
229 $
230 $
231 $
232 $
234 $
1,178 $
405 $
419 $
432 $
449 $
454 $
2,494 $
47
48
49
50
52
291
74
18. Supplementary Information
Cash paid for interest and income taxes was as follows:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
503 $
1,064 $
562 $
716 $
560
591
Interest and other income, net includes the following:
(Stated in millions)
2023
2022
2021
Earnings of equity method investments . . . . . . . . . . . . . . . . . . . $
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sale of Liberty shares * . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on Blue Chip Swap transactions * . . . . . . . . . . . . . . . . . . .
Gain on ADC equity investment * . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sale of real estate * . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on repurchase of bonds * . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gain on marketable securities * . . . . . . . . . . . . . . . .
$
(Stated in millions)
2023
2022
2021
206 $
100
36
—
—
—
—
—
342 $
164 $
99
325
(139)
107
43
11
—
40
33
28
—
—
—
—
47
610 $
148
* See Note 3 – Charges and Credits
The components of depreciation and amortization expense were as follows:
(Stated in millions)
2023
2022
2021
Depreciation of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Amortization of APS investments . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of intangible assets . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of exploration data costs . . . . . . . . . . . . . . . . . . . .
1,445 $
410
314
143
1,368 $
368
301
110
1,402
305
302
111
$
2,312 $
2,147 $
2,120
The change in Allowance for doubtful accounts was as follows:
Balance at beginning of year
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amounts written off
. . . . . . . . . . . . . . . . . . . . . . . . . . . $
Balance at end of year
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
75
(Stated in millions)
2023
2022
2021
340 $
18
(21)
337 $
319 $
54
(33)
340 $
301
47
(29)
319
Revenue in excess of billings related to contracts where revenue is recognized over time was
$0.4 billion at December 31, 2023 and $0.3 billion at December 31, 2022. Such amounts are included
within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.
Other Assets consist of the following:
(Stated in millions)
2023
2022
Investments in APS projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Pension and other postretirement plan assets . . . . . . . . . . . . . . . . . . . . .
Operating lease assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exploration data costs capitalized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of hedge contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,111 $
629
718
151
65
378
$
4,052 $
2,023
904
538
141
1
363
3,970
Accounts payable and accrued liabilities consist of the following:
Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Payroll, vacation and employee benefits . . . . . . . . . . . . . . . . . . . . . . . . .
Billings and cash collections in excess of revenue . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,613 $
1,625
1,996
2,670
$
10,904 $
3,921
1,493
1,157
2,550
9,121
(Stated in millions)
2023
2022
76
Management’s Report on Internal Control Over Financial Reporting
SLB management
is responsible for establishing and maintaining adequate internal control over
financial reporting as defined in Rule 13a–15(f) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). SLB’s internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
SLB management assessed the effectiveness of its internal control over financial reporting as of
December 31, 2023. In making this assessment, it used the criteria set forth in 2013 by the Committee
of Sponsoring Organizations of the Treadway Commission in Internal Control—Integrated Framework.
Based on this assessment SLB’s management has concluded that, as of December 31, 2023, its
internal control over financial reporting is effective based on those criteria.
The effectiveness of SLB’s internal control over financial reporting as of December 31, 2023 has been
audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated
in their report which appears herein.
77
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders
of Schlumberger Limited
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheet of Schlumberger Limited and its
subsidiaries (the “Company”) as of December 31, 2023 and 2022, and the related consolidated
statements of income, comprehensive income, stockholders’ equity and cash flows for each of the
three years in the period ended December 31, 2023, including the related notes (collectively referred to
as the “consolidated financial statements”). We also have audited the Company’s internal control over
financial reporting as of December 31, 2023, based on criteria established in Internal Control—
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of the Company as of December 31, 2023 and 2022 and the results of
its operations and its cash flows for each of the three years in the period ended December 31, 2023 in
conformity with accounting principles generally accepted in the United States of America. Also in our
opinion, the Company maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2023, based on criteria established in Internal Control—Integrated
Framework (2013) issued by the COSO.
Basis for Opinions
is responsible for
these consolidated financial statements,
its assessment of
for
The Company’s management
the
financial
maintaining effective internal control over
effectiveness of internal control over financial reporting, included in the accompanying Management’s
Report on Internal Control Over Financial Reporting. Our responsibility is to express opinions on the
Company’s consolidated financial statements and on the Company’s internal control over financial
reporting based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect
to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
reporting, and for
We conducted our audits in accordance with the standards of the PCAOB. Those standards require
that we plan and perform the audits to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud, and whether
effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks
of material misstatement of the consolidated financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts, and disclosures in the consolidated financial statements. Our
audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements.
Our audit of internal control over financial reporting included obtaining an understanding of internal
control over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. Our
audits also included performing such other procedures as we considered necessary in the
circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
78
financial
reporting includes those policies and procedures that
external purposes in accordance with generally accepted accounting principles. A company’s internal
control over
(i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (iii) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the
consolidated financial statements that was communicated or required to be communicated to the audit
committee and that (i) relates to accounts or disclosures that are material to the consolidated financial
statements and (ii) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the consolidated
financial statements, taken as a whole, and we are not, by communicating the critical audit matter
below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to
which it relates.
Uncertain Tax Positions
As described in Note 13 to the consolidated financial statements, the Company’s tax filings are subject
to regular audit by the tax authorities, and those audits may result in assessments for additional taxes
that are resolved with the tax authorities or, potentially, through the courts. Tax liabilities are recorded
based on estimates of additional taxes that will be due upon the conclusion of these audits.
The principal considerations for our determination that performing procedures relating to uncertain tax
positions is a critical audit matter are the significant judgment applied by management in determining
these liabilities including a high degree of estimation uncertainty due to the uncertain and complex
application of tax regulations, which in turn led to a high degree of auditor judgment, subjectivity, and
effort in performing procedures to evaluate management’s estimates.
Addressing the matter involved performing procedures and evaluating audit evidence in connection
with forming our overall opinion on the consolidated financial statements. These procedures included
testing the effectiveness of controls relating to the identification and recognition of uncertain tax
positions. These procedures also included, among others (i) evaluating management’s process for
determining the estimated liabilities for uncertain tax positions, (ii) testing the completeness and
reasonableness of uncertain tax positions recorded in the consolidated financial statements, and
(iii) evaluating assessments received from the relevant tax authorities. Professionals with specialized
skill and knowledge were used to assist in evaluating the reasonableness of assumptions used by
management, including management’s assessment of whether tax positions are more-likely-than-not of
being sustained.
/s/ PricewaterhouseCoopers LLP
Houston, Texas
January 24, 2024
We have served as the Company’s auditor since 1952.
79
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure.
None.
Item 9A. 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 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 so that information required to be disclosed in
reports filed or submitted under
is accumulated and communicated to its
management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding
required disclosure. There has been no change in SLB’s internal control over financial reporting that
occurred during the fourth quarter of 2023 that has materially affected, or is reasonably likely to
materially affect, SLB’s internal control over financial reporting.
the Exchange Act
Item 9B. 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 in 2023 consisted of payments of
taxes and other typical governmental charges. Certain non-US subsidiaries of SLB maintained
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 services rendered in Iran prior to the wind-down 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.
On December 27, 2023, Olivier Le Peuch, CEO and a member of the SLB Board of Directors, adopted
a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c)
for the sale of up to 240,000 shares of SLB’s common stock between April 29, 2024 and March 27,
2025, for a duration of 332 days.
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
None.
80
PART III
Item 10. Directors, Executive Officers and Corporate Governance.
for information
See “Item 1. Business—Information About Our Executive Officers” of
regarding SLB’s executive officers. The information set forth under the captions “Election of Directors,”
“Corporate Governance—Process for Selecting New Directors,” and “Corporate Governance—Board
Committees” in SLB’s 2024 Proxy Statement is incorporated herein by reference. The information set
forth under the caption “Stock Ownership Information—Delinquent Section 16(a) Reports” in SLB’s
2024 Proxy Statement is incorporated herein by reference to the extent any disclosure is required.
this Report
is
of Conduct
SLB has a Code of Conduct that applies to all of its directors, officers and employees, including its
principal executive, financial and accounting officers, or persons performing similar functions. SLB’s
https://www.slb.com/about/who-we-are/
Code
our-code-of-conduct. SLB will provide, without charge, upon request, copies of our Code of Conduct.
Requests for copies of our Code of Conduct should be sent in writing to SLB, Chief Legal Officer and
Secretary, 5599 San Felipe, Houston, Texas 77056. SLB intends to disclose future amendments to the
Code of Conduct and any grant of a waiver from a provision of the Code of Conduct requiring
disclosure under applicable SEC rules at https://www.slb.com/about/who-we-are/our-code-of-conduct.
its website
posted
on
at
The table below sets forth information regarding SLB’s directors:
Name
Peter Coleman
Former Chief Executive Officer and Managing Director, Woodside
Petroleum Ltd.
Patrick de La Chevardière
Former Chief Financial Officer, Total S.A.
Miguel M. Galuccio
Chairman and Chief Executive Officer, Vista
James Hackett
Olivier Le Peuch
Samuel Leupold
Tatiana A. Mitrova
Maria Moræus Hanssen
Former Chief Executive Officer, Anadarko Petroleum Corporation
Chief Executive Officer, SLB
Former Chief Executive Officer, Ørsted Wind Power A/S
Research Fellow, Center on Global Energy Policy, School of
International and Public Affairs at Columbia University
Former Deputy Chief Executive Officer & Chief Operating Officer,
Wintershall Dea GmbH
Vanitha Narayanan
Former Chairman and Managing Director, IBM India
Jeff W. Sheets
Ulrich Spiesshofer
Former Chief Financial Officer, ConocoPhillips Company
Former President and Chief Executive Officer, ABB Ltd.
81
Item 11. Executive Compensation.
The information set
forth under the captions “Compensation Committee Report,” “Compensation
Discussion and Analysis,” “Executive Compensation Tables,” “Pay vs. Performance Comparison,” and
“Director Compensation” in SLB’s 2024 Proxy Statement is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters.
the captions “Stock Ownership Information—Security Ownership by
The information under
Management and Our Board,”
“Stock Ownership Information—Security Ownership by Certain
Beneficial Owners,” and “Executive Compensation Tables—Equity Compensation Plan Information” in
SLB’s 2024 Proxy Statement is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions, and Director Independence.
The information under the captions “Corporate Governance—Director Independence” and “Corporate
Governance—Certain Relationships and Related Person Transactions” in SLB’s 2024 Proxy Statement
is incorporated herein by reference.
Item 14. Principal Accounting Fees and Services.
The information under the caption “Ratification of Appointment of Independent Auditors for 2024” in
SLB’s 2024 Proxy Statement is incorporated herein by reference.
82
PART IV
Item 15. Exhibits and Financial Statement Schedules.
(a) The following documents are filed as part of this Report:
(1) Financial Statements
Consolidated Statement of Income for the three years ended
December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statement of Comprehensive Income for the
three years ended December 31, 2023 . . . . . . . . . . . . . . . . . . .
Consolidated Balance Sheet at December 31, 2023 and
2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statement of Cash Flows for the three years
ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statement of Stockholders’ Equity for the three
years ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . .
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . .
Report of Independent Registered Public Accounting Firm
Page(s)
41
42
43
44
45 and 46
47 to 76
(PCAOB ID 238) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
78
Financial statements of companies accounted for under the equity method and unconsolidated
subsidiaries have been omitted because they do not meet the materiality tests for assets or income.
(2) Financial Statement Schedules not required.
(3) Exhibits: See exhibits listed under Part (b) below.
(b) Exhibits
83
INDEX TO EXHIBITS
Articles of
reference to Exhibit 3.1 to SLB’s Current Report on Form 8-K filed on April 6, 2016)
Incorporation of Schlumberger Limited (Schlumberger N.V.) (incorporated by
Exhibit
3.1
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)
Description of Common Stock of Schlumberger Limited (incorporated by reference to
Exhibit 4.1 to SLB’s Annual Report on Form 10-K filed on January 27, 2021)
Indenture dated as of December 3, 2013, by and among Schlumberger Investment SA, as
issuer, Schlumberger Limited, as guarantor, and The Bank of New York Mellon, as trustee
(incorporated by reference to Exhibit 4.1 to SLB’s Current Report on Form 8-K filed on
December 3, 2013)
Second Supplemental Indenture dated as of June 26, 2020, by and among Schlumberger
Investment SA, as issuer, Schlumberger Limited, as guarantor, and The Bank of New York
Mellon, as trustee (including form of global notes representing 2.650% Senior Notes due
2030) (incorporated by reference to Exhibit 4.1 to SLB’s Current Report on Form 8-K filed on
June 26, 2020)
Third Supplemental Indenture dated as of May 15, 2023, by and among Schlumberger
Investment SA, as issuer, Schlumberger Limited, as guarantor, and The Bank of New York
Mellon, as trustee (including form of global notes representing 4.500% Senior Notes due
2028 and form of global notes representing 4.850% Senior Notes due 2033) (incorporated by
reference to Exhibit 4.1 to SLB’s Current Report on Form 8-K filed on May 15, 2023)
Officers’ Certificate dated as of August 11, 2020, executed by Schlumberger Investment SA,
as issuer, and Schlumberger Limited, as guarantor
(including form of global notes
representing 2.650% Senior Notes due 2030) (incorporated by reference to Exhibit 4.1 to
SLB’s Current Report on Form 8-K filed on August 11, 2020)
Indenture dated as of September 18, 2020, by and among Schlumberger Finance Canada
Ltd., as issuer, Schlumberger Limited, as guarantor, and The Bank of New York Mellon, as
trustee (incorporated by reference to Exhibit 4.1 to SLB’s Current Report on Form 8-K filed
on September 18, 2020)
First Supplemental Indenture dated as of September 18, 2020, by and among Schlumberger
Finance Canada Ltd., as issuer, Schlumberger Limited, as guarantor, and The Bank of New
York Mellon, as trustee (including form of global notes representing 1.400% Senior Notes
due 2025) (incorporated by reference to Exhibit 4.2 to SLB’s Current Report on Form 8-K
filed on September 18, 2020)
Schlumberger Limited Supplementary Benefit Plan, as amended and restated effective
November 1, 2020 and conformed to include amendments effective through January 1, 2023
(incorporated by reference to Exhibit 10.1 to SLB’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2023) (+)
Schlumberger Limited Restoration Savings Plan, as amended and restated effective
January 1, 2023 (incorporated by reference to Exhibit 10.2 to SLB’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2023) (+)
84
3.2
4.1
4.2
4.3
4.4
4.5
4.6
4.7
10.1
10.2
Schlumberger Technology Corporation Supplementary Benefit Plan, as established effective
January 1, 1995 and conformed to include amendments through January 1, 2023 (*) (+)
2010 Omnibus Stock Incentive Plan, as amended and restated as of July 19, 2017
(incorporated by reference to Exhibit 10.8 to SLB’s Annual Report on Form 10-K for the year
ended December 31, 2018) (+)
Form of Option Agreement (Employees in France), Incentive Stock Option, under SLB’s
2010 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.10 to SLB’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2013) (+)
Form of Option Agreement (Employees in France), Non-Qualified Stock Option, under SLB’s
2010 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.11 to SLB’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2013) (+)
2018 Rules of SLB’s 2010, 2013 and 2017 Omnibus Incentive Plans for Employees in
France (incorporated by reference to Appendix B to SLB’s Definitive Proxy Statement on
Schedule 14A filed with the SEC on March 2, 2018) (+)
2013 Omnibus Stock Incentive Plan, as amended and restated as of July 19, 2017
(incorporated by reference to Exhibit 10.15 to SLB’s Annual Report on Form 10-K for the
year ended December 31, 2018) (+)
Form of Option Agreement,
Incentive Stock Option, under SLB’s 2013 Omnibus Stock
Incentive Plan (incorporated by reference to Exhibit 10.1 to the SLB’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2015) (+)
Form of Restricted Stock Unit Award Agreement under SLB’s 2013 Omnibus Stock Incentive
Plan (ratable vesting) (incorporated by reference to Exhibit 10.15 to SLB’s Annual Report on
Form 10-K filed on January 27, 2021) (+)
Form of Restricted Stock Unit Award Agreement under SLB’s 2017 Omnibus Stock Incentive
Plan (incorporated by reference to Exhibit 10.4 to SLB’s Quarterly Report on Form 10-Q for
the quarter ended March 31, 2017) (+)
Addendum to Restricted Stock Unit Award Agreements, Performance Share Unit
Agreements,
Incentive Stock Option Agreements, and Non-Qualified Stock Option
Agreements Issued Prior to July 19, 2017 (incorporated by reference to Exhibit 10.27 to
SLB’s Annual Report on Form 10-K for the year ended December 31, 2018) (+)
Form of Performance Share Unit Award Agreement (Based on Free Cash Flow Margin
Performance) under SLB’s 2017 Omnibus Stock Incentive Plan (incorporated by reference to
Exhibit 10.3 to SLB’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022)
(+)
Form of Performance Share Unit Award Agreement (Based on Return on Capital Employed
Performance) under SLB’s 2017 Omnibus Stock Incentive Plan (incorporated by reference to
Exhibit 10.4 to SLB’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022)
(+)
85
Exhibit
10.3
10.4
10.5
10.6
10.7
10.8
10.9
10.10
10.11
10.12
10.13
10.14
Form of Performance Share Unit Award Agreement (Based on Relative TSR Performance)
under SLB’s 2017 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.5
to SLB’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022) (+)
2017 Omnibus Stock Incentive Plan, as amended and restated effective January 21, 2021
(incorporated by reference to Exhibit 10.1 to SLB’s Current Report on Form 8-K filed on
April 7, 2021) (+)
Discounted Stock Purchase Plan, as amended and restated effective July 1, 2022
(incorporated by reference to Exhibit 10.1 to SLB’s Current Report on Form 10-Q filed on
July 27, 2022) (+)
2004 Stock and Deferral Plan for Non-Employee Directors, as amended and restated
effective January 21, 2021 (incorporated by reference to Exhibit 10.3 to SLB’s Current
Report on Form 8-K filed on April 7, 2021) (+)
Form of Indemnification Agreement (*) (+)
Employment, Non-Competition and Non-Solicitation Agreement effective as of April 1, 2022,
by and between Schlumberger Limited and Ashok Belani (incorporated by reference to
Exhibit 10.1 to SLB’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022)
(+)
Significant Subsidiaries (*)
Issuers of Registered Guaranteed Debt Securities (*)
Consent of Independent Registered Public Accounting Firm (*)
Powers of Attorney (*)
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002 (*)
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002 (*)
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 (**)
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 (**)
Mine Safety Disclosure (*)
Policy for Recovery of Performance-Based Incentive Compensation from Executive Officers
(*)
Exhibit
10.15
10.16
10.17
10.18
10.19
10.20
21
22
23
24
31.1
31.2
32.1
32.2
95
97
Inline XBRL Instance Document (*)
101.INS
86
Inline XBRL Taxonomy Extension Schema Document (*)
Inline XBRL Taxonomy Extension Calculation Linkbase Document (*)
Inline XBRL Taxonomy Extension Definition Linkbase Document (*)
Inline XBRL Taxonomy Extension Label Linkbase Document (*)
Inline XBRL Taxonomy Extension Presentation Linkbase Document (*)
Exhibit
101.SCH
101.CAL
101.DEF
101.LAB
101.PRE
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
104
(*) Filed with this Form 10-K
(**) Furnished with this Form 10-K
(+) Management contracts or compensatory plans or arrangements
to long-term debt of
The Exhibits filed herewith do not
Schlumberger Limited and its subsidiaries, inasmuch as the total amount of debt authorized under any
such instrument does not exceed 10 percent of the total assets of Schlumberger Limited and its
subsidiaries on a consolidated basis. SLB agrees, pursuant to Item 601(b)(4)(iii) of Regulation S-K,
that it will furnish a copy of any such instrument to the SEC upon request.
include certain instruments with respect
Item 16. Form 10-K Summary.
None.
87
Pursuant to the requirements of Section 13 or 15(d) 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.
SIGNATURES
Date: January 24, 2024
SCHLUMBERGER LIMITED
By:
/S/ HOWARD GUILD
Howard Guild
Chief Accounting Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed
below by the following persons on behalf of the Registrant and in the capacities and on the dates
indicated.
Name
*
Olivier Le Peuch
/S/ STEPHANE BIGUET
Stephane Biguet
/S/ HOWARD GUILD
Howard Guild
*
Peter Coleman
*
Patrick de La Chevardière
*
Miguel M. Galuccio
*
James Hackett
*
Samuel Leupold
*
Tatiana A. Mitrova
*
Maria Moræus Hanssen
*
Vanitha Narayanan
*
Jeff W. Sheets
*
Ulrich Spiesshofer
Title
Chief Executive Officer and Director
(Principal Executive Officer)
Executive Vice President and Chief Financial
Officer
(Principal Financial Officer)
Chief Accounting Officer
(Principal Accounting Officer)
Director
Director
Director
Chairman of the Board
Director
Director
Director
Director
Director
Director
/S/ DIANNE B. RALSTON
*By Dianne B. Ralston, Attorney-in-Fact
January 24, 2024
88