Registrant’s telephone number in the United States, including area code, is: (713) 513-2000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


(Stated in millions, except per share amounts)	(Stated in millions, except per share amounts)								(Stated in millions, except per share amounts)

	Second Quarter				Six Months				Three Months Ended March 31,
	2023		2022		2023		2022		2024		2023
Revenue
Services	$	5,563	$	4,732	$	10,897	$	8,954	$	5,676	$	5,334
Product sales		2,536		2,041		4,938		3,781		3,031		2,402
Total Revenue		8,099		6,773		15,835		12,735		8,707		7,736
Interest & other income		82		311		174		361		84		92
Expenses
Cost of services		4,288		3,720		8,417		7,107		4,415		4,129
Cost of sales		2,214		1,848		4,370		3,474		2,592		2,156
Research & engineering		163		154		337		295		182		174
General & administrative		96		86		187		183		121		91
Merger & integration										11		-
Interest		127		124		244		247		113		117
Income before taxes		1,293		1,152		2,454		1,790		1,357		1,161
Tax expense		246		182		464		300		259		217
Net income		1,047		970		1,990		1,490		1,098		944
Net income attributable to noncontrolling interests		14		11		23		21		30		10
Net income attributable to SLB	$	1,033	$	959	$	1,967	$	1,469	$	1,068	$	934

Basic income per share of SLB	$	0.73	$	0.68	$	1.38	$	1.04	$	0.75	$	0.65

Diluted income per share of SLB	$	0.72	$	0.67	$	1.36	$	1.02	$	0.74	$	0.65

Average shares outstanding:
Basic		1,423		1,414		1,425		1,413		1,431		1,426
Assuming dilution		1,442		1,436		1,444		1,435		1,447		1,446


(Stated in millions)	(Stated in millions)												(Stated in millions)

	Second Quarter						Six Months						Three Months Ended March 31,
	2023			2022			2023			2022			2024			2023
Net income	$	1,047		$	970		$	1,990		$	1,490		$	1,098		$	944
Currency translation adjustments
Unrealized net change arising during the period		(43	)		216			(77	)		110			23			(34	)
Cash flow hedges
Net gain (loss) on cash flow hedges		105			(106	)		72			(97	)
Reclassification to net income of net realized (gain) loss		(9	)		55			(14	)		72
Net loss on cash flow hedges														(17	)		(33	)
Reclassification to net income of net realized gain														(1	)		(5	)
Pension and other postretirement benefit plans
Amortization to net income of net actuarial loss		(2	)		14			(4	)		30
Amortization to net income of net actuarial gain														-			(2	)
Amortization to net income of net prior service credit		(6	)		(6	)		(11	)		(11	)		(6	)		(6	)
Income taxes on pension and other postretirement benefit plans		2			2			3			2			1			2
Other														5			-
Comprehensive income		1,094			1,145			1,959			1,596			1,103			866
Comprehensive income attributable to noncontrolling interests		14			11			23			21			30			10
Comprehensive income attributable to SLB	$	1,080		$	1,134		$	1,936		$	1,575		$	1,073		$	856


(Stated in millions)	(Stated in millions)						(Stated in millions)

	Jun. 30,						Mar. 31,
	2023			Dec. 31,			2024			Dec. 31,
	(Unaudited)			2022			(Unaudited)			2023
ASSETS
Current Assets
Cash	$	1,930		$	1,655		$	2,788		$	2,900
Short-term investments		1,264			1,239			703			1,089
Receivables less allowance for doubtful accounts (2023 - $339; 2022 - $340)		7,675			7,032
Receivables less allowance for doubtful accounts (2024 - $333; 2023 - $337)								8,222			7,812
Inventories		4,360			3,999			4,549			4,387
Other current assets		925			1,078			1,438			1,530
		16,154			15,003			17,700			17,718
Investments in Affiliated Companies		1,601			1,581			1,606			1,624
Fixed Assets less accumulated depreciation		6,804			6,607			7,253			7,240
Goodwill		13,117			12,982			14,086			14,084
Intangible Assets		2,968			2,992			3,167			3,239
Other Assets		4,182			3,970			4,044			4,052
	$	44,826		$	43,135		$	47,856		$	47,957
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	8,938		$	9,121		$	10,051		$	10,904
Estimated liability for taxes on income		859			1,002			987			994
Short-term borrowings and current portion of long-term debt		1,993			1,632			1,430			1,123
Dividends payable		373			263			411			374
		12,163			12,018			12,879			13,395
Long-term Debt		11,342			10,594			10,740			10,842
Postretirement Benefits		167			165			177			175
Deferred Taxes		183			61			115			140
Other Liabilities		2,037			2,308			2,022			2,046
		25,892			25,146			25,933			26,598
Equity
Common stock		11,270			11,837			11,344			11,624
Treasury stock		(750	)		(1,016	)		(531	)		(678	)
Retained earnings		11,974			10,719			14,172			13,497
Accumulated other comprehensive loss		(3,886	)		(3,855	)		(4,249	)		(4,254	)
SLB stockholders’ equity		18,608			17,685			20,736			20,189
Noncontrolling interests		326			304			1,187			1,170
		18,934			17,989			21,923			21,359
	$	44,826		$	43,135		$	47,856		$	47,957


(Stated in millions)	(Stated in millions)						(Stated in millions)

	Six Months Ended June 30,						Three Months Ended March 31,
	2023			2022			2024			2023
Cash flows from operating activities:
Net income	$	1,990		$	1,490		$	1,098		$	944
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of Liberty shares		(36	)		(242	)
Gain on sale of real estate		-			(43	)
Charges and credits								25			(36	)
Depreciation and amortization (1)		1,124			1,065			600			563
Deferred taxes		118			11			(30	)		112
Stock-based compensation expense		160			160			100			81
Earnings of equity method investments, less dividends received		(79	)		(22	)		(16	)		(32	)
Change in assets and liabilities: (2)
Increase in receivables		(614	)		(887	)		(429	)		(509	)
Increase in inventories		(368	)		(652	)		(172	)		(288	)
Decrease (increase) in other current assets		157			(240	)
Increase in other assets		(18	)		(26	)
Decrease in other current assets								46			54
Decrease (increase) in other assets								7			(10	)
Decrease in accounts payable and accrued liabilities		(270	)		(57	)		(885	)		(473	)
Decrease in estimated liability for taxes on income		(191	)		(48	)		(46	)		(84	)
(Decrease) increase in other liabilities		(63	)		4
Other		28			26			29			8
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,938			539			327			330
Cash flows from investing activities:
Capital expenditures		(881	)		(664	)		(399	)		(410	)
APS investments		(253	)		(311	)		(121	)		(133	)
Exploration data costs capitalized		(83	)		(64	)		(29	)		(52	)
Business acquisitions and investments, net of cash acquired		(262	)		(8	)		(27	)		(244	)
Proceeds from sale of Liberty shares		137			513			-			137
Proceeds from sale of real estate		-			120
(Purchase) sale of short-term investments, net		(24	)		457
Sale of short-term investments, net								390			236
Other		(164	)		(76	)		35			(81	)
NET CASH USED IN INVESTING ACTIVITIES		(1,530	)		(33	)		(151	)		(547	)
Cash flows from financing activities:
Dividends paid		(605	)		(352	)		(357	)		(249	)
Proceeds from employee stock purchase plan		86			64			100			86
Proceeds from exercise of stock options		38			29			15			35
Taxes paid on net settled stock-based compensation awards								(78	)		(88	)
Stock repurchase program		(443	)		-			(270	)		(230	)
Proceeds from issuance of long-term debt		992			-			345			559
Net decrease in short-term borrowings		(48	)		(11	)		(9	)		(50	)
Taxes paid on net settled stock-based compensation awards		(144	)		(85	)
Other		3			(3	)		(13	)		(1	)
NET CASH USED IN FINANCING ACTIVITIES		(121	)		(358	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES								(267	)		62
Net increase in cash before translation effect		287			148			(91	)		(155	)
Translation effect on cash		(12	)		(12	)		(21	)		1
Cash, beginning of period		1,655			1,757			2,900			1,655
Cash, end of period	$	1,930		$	1,893		$	2,788		$	1,501


	(Stated in millions, except per share amounts)																		(Stated in millions, except per share amounts)

										Accumulated												Accumulated
										Other												Other
	Common Stock						Retained			Comprehensive			Noncontrolling						Common Stock		Retained	Comprehensive	Noncontrolling
January 1, 2023 – June 30, 2023	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2023	$	11,837		$	(1,016	)	$	10,719		$	(3,855	)	$	304		$	17,989
January 1, 2024 – March 31, 2024																			Issued	In Treasury	Earnings	Loss	Interests	Total
Balance, January 1, 2024																			$11,624	$(678)	$13,497	$(4,254)	$1,170	$21,359
Net income								1,967						23			1,990				1,068		30	1,098
Currency translation adjustments											(77	)					(77	)				23		23
Changes in fair value of cash flow hedges											58						58					(18)		(18)
Pension and other postretirement benefit plans											(12	)					(12	)				(5)		(5)
Shares sold to optionees, less shares exchanged		(31	)		69												38		(6)	21				15
Vesting of restricted stock, net of taxes withheld		(573	)		429												(144	)	(338)	260				(78)
Employee stock purchase plan		(123	)		209												86		(36)	136				100
Stock repurchase program					(443	)											(443	)		(270)				(270)
Stock-based compensation expense		160															160		100					100
Dividends declared ($0.50 per share)								(712	)								(712	)
Dividends paid to noncontrolling interests														(2	)		(2	)
Dividends declared ($0.275 per share)																					(393)			(393)
Other					2									1			3					5	(13)	(8)
Balance, June 30, 2023	$	11,270		$	(750	)	$	11,974		$	(3,886	)	$	326		$	18,934
Balance, March 31, 2024																			$11,344	$(531)	$14,172	$(4,249)	$1,187	$21,923



										Accumulated												Accumulated
										Other												Other
	Common Stock						Retained			Comprehensive			Noncontrolling						Common Stock		Retained	Comprehensive	Noncontrolling
January 1, 2022 – June 30, 2022	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2022	$	12,608		$	(2,233	)	$	8,199		$	(3,570	)	$	282		$	15,286
January 1, 2023 – March 31, 2023																			Issued	In Treasury	Earnings	Loss	Interests	Total
Balance, January 1, 2023																			$11,837	$(1,016)	$10,719	$(3,855)	$304	$17,989
Net income								1,469						21			1,490				934		10	944
Currency translation adjustments											110						110					(34)		(34)
Changes in fair value of cash flow hedges											(25	)					(25	)				(38)		(38)
Pension and other postretirement benefit plans											21						21					(6)		(6)
Shares sold to optionees, less shares exchanged		(24	)		53												29		(28)	63				35
Vesting of restricted stock, net of taxes withheld		(658	)		573												(85	)	(503)	415				(88)
Employee stock purchase plan		(104	)		168												64		(123)	209				86
Stock repurchase program																				(230)				(230)
Stock-based compensation expense		160															160		81					81
Dividends declared ($0.30 per share)								(424	)								(424	)
Dividends declared ($0.25 per share)																					(357)			(357)
Dividends paid to noncontrolling interest														(4	)		(4	)					(2)	(2)
Other		(1	)		3									1			3
Balance, June 30, 2022	$	11,981		$	(1,436	)	$	9,244		$	(3,464	)	$	300		$	16,625
Balance, March 31, 2023																			$11,264	$(559)	$11,296	$(3,933)	$312	$18,380

1. Basis of Presentation

The accompanying unaudited consolidated financial statements of Schlumberger Limited and its subsidiaries (“SLB”) have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of SLB management, all adjustments considered necessary for a fair statement have been included in the accompanying unaudited financial statements. All intercompany transactions and balances have been eliminated in consolidation. Operating results for the ~~six-month~~three-month period ended ~~June 30, 2023~~March 31, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, ~~2023.~~2024. The December 31, ~~2022~~2023 balance sheet information has been derived from the SLB ~~2022~~2023 audited financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the SLB Annual Report on Form 10-K for the year ended December 31, ~~2022,~~2023, filed with the Securities and Exchange Commission on January ~~25,~~24, 2024.

Recently Announced Transaction

On April 2, 2024, SLB announced a definitive agreement to purchase ChampionX Corporation ("ChampionX") in an all-stock transaction. ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. Under the terms of the agreement, ChampionX shareholders will receive 0.735 shares of SLB common stock in exchange for each ChampionX share. At the closing of the transaction ChampionX shareholders will own approximately 9% of SLB's outstanding shares of common stock. ChampionX reported revenue of approximately $3.8 billion in 2023. The transaction is subject to ChampionX stockholder approval, regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur before the end of 2024.

2. Charges and Credits

2024

In connection with SLB's October 2023 acquisition of the Aker Solutions ("Aker") subsea business, SLB recorded $25 million of pretax charges during the first quarter of 2024 consisting of: $14 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventories to its estimated fair value and $11 million of other merger and integration-related costs. $14 million of these costs are classified in Cost of Sales in the Consolidated Statement of Income, with the remaining $11 million classified in Merger & integration.


	(Stated in millions)

					Noncontrolling
	Pretax Charge		Tax Benefit		Interests		Net
Merger and integration	$	25	$	6	$	5	$	14

2023

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 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 pretax gain of $36 million ($28 million after-tax) which is classified in Interest & other income in the Consolidated Statement of Income.

~~SLB did~~ no~~t record any charges or credits during the second quarter of 2023.~~

~~2022~~

~~SLB recorded the following credits during the first six months of 2022, all of which are classified in~~ ~~Interest & other income~~ ~~in the~~ ~~Consolidated Statement of Income~~:

(Stated in millions)

Pretax Credit

Tax Expense

Net

First quarter:

Gain on sale of Liberty shares
$
(26
)

$
(4
)

$
(22
)
Second quarter:

Gain on sale of Liberty shares

(216
)

(13
)

(203
)
Gain on sale of real estate

(43
)

(2
)

(41
)
$
(285
)

$
(19
)

$
(266
)

~~During the first quarter of 2022, SLB sold~~ ~~7.2~~ ~~million of its shares of Liberty and received proceeds of $~~84 ~~million. During the second quarter of 2022, SLB sold an additional~~ ~~26.5~~ ~~million of its shares in Liberty and received proceeds of $429~~ ~~million. As a result of these transactions SLB recognized a gain of $~~26 ~~million during the first quarter of 2022 and a gain of $216~~ ~~million during the second quarter of 2022.~~

~~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.~~

3. Earnings per Share

The following is a reconciliation from basic earnings per share of SLB to diluted earnings per share of SLB:


	(Stated in millions, except per share amounts)												(Stated in millions, except per share amounts)

	2023						2022						2024						2023
	Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share		Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share		Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share		Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share
Second Quarter
First Quarter
Basic	$	1,033		1,423	$	0.73	$	959		1,414	$	0.68	$	1,068		1,431	$	0.75	$	934		1,426	$	0.65
Assumed exercise of stock options		-		2				-		-				-		1				-		2
Unvested restricted stock		-		17				-		22				-		15				-		18
Diluted	$	1,033		1,442	$	0.72	$	959		1,436	$	0.67	$	1,068		1,447	$	0.74	$	934		1,446	$	0.65


	2023						2022
	Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share		Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share
Six Months
Basic	$	1,967		1,425	$	1.38	$	1,469	$	1,413	$	1.04
Assumed exercise of stock options		-		2				-		-
Unvested restricted stock		-		17				-		22
Diluted	$	1,967		1,444	$	1.36	$	1,469	$	1,435	$	1.02

The number of outstanding options to purchase shares of SLB common stock that were not included in the computation of diluted income per share, because to do so would have had an antidilutive effect, was as follows:


(Stated in millions)	(Stated in millions)								(Stated in millions)

	Second Quarter				Six Months				Three Months Ended March 31,
	2023		2022		2023		2022		2024		2023
Employee stock options		22		26		22		31		20		24

4. Inventories

A summary of inventories, which are stated at the lower of average cost or net realizable value, is as follows:


(Stated in millions)	(Stated in millions)				(Stated in millions)

	Jun. 30,		Dec. 31,		Mar. 31,		Dec. 31,
	2023		2022		2024		2023
Raw materials & field materials	$	2,308	$	2,085	$	2,400	$	2,296
Work in progress		650		547		813		762
Finished goods		1,402		1,367		1,336		1,329
	$	4,360	$	3,999	$	4,549	$	4,387

5. Fixed Assets

Fixed assets consist of the following:


(Stated in millions)	(Stated in millions)				(Stated in millions)

	Jun. 30,		Dec. 31,		Mar. 31,		Dec. 31,
	2023		2022		2024		2023
Property, plant & equipment	$	28,771	$	28,386	$	29,934	$	29,965
Less: Accumulated depreciation		21,967		21,779		22,681		22,725
	$	6,804	$	6,607	$	7,253	$	7,240

Depreciation expense relating to fixed assets was ~~as follows:~~$377 million and $347 million in the first quarter of 2024 and 2023, respectively.

(Stated in millions)

2023

2022

Second Quarter
$
353

$
340

Six Months
$
700

$
678

6. Intangible Assets

Intangible assets consist of the ~~following~~: following:


	(Stated in millions)												(Stated in millions)

	Jun. 30, 2023						Dec. 31, 2022						Mar. 31, 2024						Dec. 31, 2023
	Gross		Accumulated		Net Book		Gross		Accumulated		Net Book		Gross		Accumulated		Net Book		Gross		Accumulated		Net Book
	Book Value		Amortization		Value		Book Value		Amortization		Value		Book Value		Amortization		Value		Book Value		Amortization		Value
Customer relationships	$	1,709	$	667	$	1,042	$	1,680	$	631	$	1,049	$	1,886	$	731	$	1,155	$	1,887	$	709	$	1,178
Technology/technical know-how		1,306		721		585		1,280		676		604		1,516		795		721		1,516		770		746
Tradenames		795		248		547		767		222		545		795		274		521		795		265		530
Other		1,704		910		794		1,657		863		794		1,592		822		770		1,582		797		785
	$	5,514	$	2,546	$	2,968	$	5,384	$	2,392	$	2,992	$	5,789	$	2,622	$	3,167	$	5,780	$	2,541	$	3,239

Amortization expense charged to income was ~~as follows:~~$81 million during the first quarter of 2024 and $76 million during the first quarter of 2023.

(Stated in millions)

2023

2022

Second Quarter
$
77

$
75

Six Months
$
153

$
150

Based on the carrying value of intangible assets at ~~June 30, 2023,~~March 31, 2024, amortization expense for the subsequent five years is estimated to be: remaining ~~two~~three quarters of ~~2023—$153~~ ~~million;~~ 2024—$~~288~~244 million; 2025—$~~273~~306 million; 2026—$~~269~~297 million; 2027—$~~267~~293 million; 2028—$283 million; and ~~2028—~~2029—$~~246~~270 million.

7. Long-term Debt

Long-term Debt ~~consist~~consists of the following:


(Stated in millions)	(Stated in millions)				(Stated in millions)

	Jun. 30,		Dec. 31,		Mar. 31,		Dec. 31,
	2023		2022		2024		2023
3.90% Senior Notes due 2028	$	1,465	$	1,464	$	1,473	$	1,469
2.65% Senior Notes due 2030		1,250		1,250		1,250		1,250
1.375% Guaranteed Notes due 2026		1,094		1,061		1,080		1,104
2.00% Guaranteed Notes due 2032		1,088		1,055		1,074		1,098
0.25% Notes due 2027		985		955		972		994
0.50% Notes due 2031		984		954		971		992
4.30% Senior Notes due 2029		847		847		847		847
1.00% Guaranteed Notes due 2026		656		635		648		662
0.00% Notes due 2024		548		531
4.00% Senior Notes due 2025		523		522		523		523
1.40% Senior Notes due 2025		499		499		499		499
4.50% Senior Notes due 2028		496		-		497		497
4.85% Senior Notes due 2033		496		-		497		497
7.00% Notes due 2038		201		202		199		200
5.95% Notes due 2041		112		112		112		112
5.13% Notes due 2043		98		98		98		98
3.75% Senior Notes due 2024		-		355
3.70% Notes due 2024		-		54
	$	11,342	$	10,594	$	10,740	$	10,842

~~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~~.

The estimated fair value of SLB’s Long-term Debt, based on quoted market prices at ~~June 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, was $~~10.3~~10.0 billion and $~~9.4~~10.2 billion, respectively.

At ~~June 30, 2023,~~March 31, 2024, SLB had committed credit facility agreements aggregating $~~5.75~~5.0 billion with commercial ~~banks.~~banks, of which $4.7 billion was available and unused. These committed facilities, of which $2.0 billion matures in February 2027 and $3.0 billion matures in December 2028, support commercial paper programs in the United States and ~~Europe,~~Europe. Borrowings under the commercial paper programs at March 31, 2024 were $345 million, all of which $~~0.75~~ ~~billion matures in February 2024, $2.0~~ ~~billion matures in February 2025, $1.0~~ ~~billion matures in July 2026 and $2.0~~ ~~billion matures in February 2027. SLB also has a €750~~ ~~million~~ ~~three-year~~ ~~committed revolving credit facility maturing~~were classified in Short-term borrowings and current portion of long-term debt in the ~~June 2024~~Consolidated Balance Sheet. ~~At June 30, 2023 no amounts had been drawn under these facilities. Interest rates and other terms of borrowing under these lines of credit vary by facility.~~

There were no borrowings under the commercial paper programs at ~~June 30, 2023 and~~ December 31, ~~2022, respectively.~~2023.

Schlumberger Limited fully and unconditionally guarantees the securities issued by certain of its subsidiaries, including securities issued by Schlumberger Investment S.A. and Schlumberger Finance Canada Ltd., both indirect wholly-owned subsidiaries of Schlumberger Limited.

8. Derivative Instruments and Hedging Activities

SLB’s functional currency is primarily the US dollar. However, outside the United States, a significant portion of SLB’s expenses is incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which SLB conducts business, the US dollar-reported expenses will increase (decrease).

Changes in foreign currency exchange rates ~~exposes~~expose SLB to risks on future cash flows relating to ~~certain of~~ 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 inAccumulated other comprehensive loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings.

Details regarding SLB’s outstanding cross-currency interest rate swaps as of ~~June 30, 2023,~~March 31, 2024, were as follows:

•

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 US dollar 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 US dollar 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 notes to US-dollar denominated debt with fixed annual interest rates of 1.87% and 2.20%, respectively.

•

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 US dollar 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 US dollar 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 was as follows:


	(Stated in millions)				(Stated in millions)

	Jun. 30, 2023		Dec. 31, 2022		Mar. 31, 2024		Dec. 31, 2023
Accounts payable and accrued liabilities					$	11	$	-
Other Assets	$	11	$	1	$	17	$	36
Other Liabilities	$	155	$	326	$	98	$	67

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 has entered into derivative contracts that hedge the price of oil related to approximately 75% of the projected oil production for the ~~remaining six months~~second and third quarters of ~~2023 and~~2024, approximately 3550% for the fourth quarter of ~~the projected oil production~~2024, and approximately 25% for the first ~~six months~~quarter of ~~2024~~2025 for one of its Asset Performance Solutions ("APS") projects. 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.

Foreign currency forward contracts were outstanding for the US dollar equivalent of $~~2.4~~5.1 billion and $~~2.1~~5.4 billion in various foreign currencies as of ~~June 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively.

Other than the previously mentioned cross-currency interest rate swaps, the fair value of the other outstanding derivatives was not material as of ~~June 30, 2023~~March 31, 2024 and December 31, ~~2022.~~2023.

The effect of derivative instruments designated as cash flow hedges, and those not designated as hedges, on the Consolidated Statement of Income was as follows:

(Stated in millions)

Gain (Loss) Recognized in Income

Second Quarter

Six Months

2023

2022

2023

2022

Consolidated Statement of Income Classification
Derivatives designated as cash flow hedges:

Cross-currency interest rate swaps
$
38

$
(160
)

$
132

$
(291
)

Cost of services/sales
Cross-currency interest rate swaps

(22
)

-

(44
)

-

Interest expense
Commodity contracts

4

(50
)

7

(65
)

Revenue
Foreign exchange contracts

4

(5
)

7

(7
)

Cost of services/sales
$
24

$
(215
)

$
102

$
(363
)

Derivatives not designated as hedges:

Foreign exchange contracts
$
(27
)
$
(27
)

$
(26
)
$
(38
)

Cost of services/sales


	(Stated in millions)

	Gain (Loss) Recognized in Income
	First Quarter
	2024			2023			Consolidated Statement of Income Classification
Derivatives designated as cash flow hedges:
Cross-currency interest rate swaps	$	(94	)	$	95		Cost of services/sales
Cross-currency interest rate swaps		(21	)		(22	)	Interest expense
Commodity contracts		(3	)		2		Revenue
Foreign exchange contracts		-			3		Cost of services/sales
Foreign exchange contracts		3			-		Revenue
	$	(115	)	$	78
Derivatives not designated as hedges:
Foreign exchange contracts	$	5		$	1		Cost of services/sales

SLB issued a credit default swap ("CDS") to a third-party financial institution that has a notional amount outstanding, as of March 31, 2024, of $521 million. The CDS related 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 reduces on a monthly basis over its remaining 23-month term. The fair value of this derivative liability was not material at March 31, 2024.

SLB is party to various legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote. However, litigation is inherently uncertain and it is not possible to predict the ultimate disposition of any of these proceedings.

10. Segment Information


				(Stated in millions)												(Stated in millions)

	Second Quarter 2023						Second Quarter 2022						First Quarter 2024						First Quarter 2023
				Income						Income						Income						Income
	Revenue			Before Taxes			Revenue			Before Taxes			Revenue			Before Taxes			Revenue			Before Taxes
Digital & Integration	$	947		$	322		$	955		$	379		$	953		$	254		$	894		$	265
Reservoir Performance		1,643			306			1,333			195			1,725			339			1,503			242
Well Construction		3,362			731			2,686			470			3,368			690			3,261			672
Production Systems		2,313			278			1,893			171			2,818			400			2,207			205
Eliminations & other		(166	)		(56	)		(94	)		(56	)		(157	)		(34	)		(129	)		7
Pretax segment operating income					1,581						1,159						1,649						1,391
Corporate & other (1)					(183	)					(148	)					(191	)					(169	)
Interest income (2)					19						3						34						17
Interest expense (3)					(124	)					(121	)					(110	)					(114	)
Charges and credits (4)					-						259						(25	)					36
	$	8,099		$	1,293		$	6,773		$	1,152		$	8,707		$	1,357		$	7,736		$	1,161

(1)

Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.

(2)

Interest income excludes amounts that are included in the segments’ income ($~~- million in 2023; $~~164 million in ~~2022)~~2024; $- million in 2023).

(3)

Interest expense excludes amounts that are included in the segments’ income ($3 million in ~~2023;~~2024; $3 million in ~~2022).~~

~~(4)~~

~~See Note 2 –~~ ~~Charges and Credits~~.

(Stated in millions)

Six Months 2023

Six Months 2022

Income

Income

Revenue

Before Taxes

Revenue

Before Taxes

Digital & Integration
$
1,840

$
587

$
1,813

$
671

Reservoir Performance

3,146

548

2,543

355

Well Construction

6,623

1,403

5,083

858

Production Systems

4,520

483

3,497

285

Eliminations & other

(294
)

(49
)

(201
)

(115
)
Pretax segment operating income

2,972

2,054

Corporate & other (1)

(353
)

(313
)
Interest income (2)

36

5

Interest expense (3)

(237
)

(241
)
Charges and credits (4)

36

285

$
15,835

$
2,454

$
12,735

$
1,790

~~(1)~~

~~(2)~~

~~Interest income excludes amounts that are included in the segments’ income ($- million in 2023; $~~28 ~~million in 2022).~~

~~(3)~~

~~Interest expense excludes amounts that are included in the segments’ income ($~~7 ~~million in 2023; $~~6 ~~million in 2022)~~2023).

(4)

See Note 2 – Charges and Credits.

North America and International revenue disaggregated by segment was as follows:


							(Stated in millions)												(Stated in millions)

	Second Quarter 2023												First Quarter 2024
	North												North
	America			International			Other			Total			America			International			Other			Total
Digital & Integration	$	234		$	712		$	1		$	947		$	236		$	717		$	-		$	953
Reservoir Performance		130			1,512			1			1,643			130			1,592			3			1,725
Well Construction		721			2,582			59			3,362			604			2,707			57			3,368
Production Systems		679			1,628			6			2,313			647			2,164			7			2,818
Eliminations & other		(18	)		(137	)		(11	)		(166	)		(19	)		(124	)		(14	)		(157	)
	$	1,746		$	6,297		$	56		$	8,099		$	1,598		$	7,056		$	53		$	8,707


	Second Quarter 2022												First Quarter 2023
	North												North
	America			International			Other			Total			America			International			Other			Total
Digital & Integration	$	327		$	627		$	1		$	955		$	251		$	642		$	1		$	894
Reservoir Performance		111			1,222			-			1,333			120			1,380			3			1,503
Well Construction		553			2,083			50			2,686			711			2,493			57			3,261
Production Systems		550			1,341			2			1,893			626			1,574			7			2,207
Eliminations & other		(4	)		(85	)		(5	)		(94	)		(10	)		(104	)		(15	)		(129	)
	$	1,537		$	5,188		$	48		$	6,773		$	1,698		$	5,985		$	53		$	7,736

Six Months 2023

North

America

International

Other

Total

Digital & Integration
$
485

$
1,354

$
1

$
1,840

Reservoir Performance

250

2,892

4

3,146

Well Construction

1,432

5,075

116

6,623

Production Systems

1,305

3,202

13

4,520

Eliminations & other

(29
)

(241
)

(24
)

(294
)

$
3,443

$
12,282

$
110

$
15,835

Six Months 2022

North

America

International

Other

Total

Digital & Integration
$
552

$
1,258

$
3

$
1,813

Reservoir Performance

214

2,326

3

2,543

Well Construction

1,038

3,948

97

5,083

Production Systems

1,023

2,468

6

3,497

Eliminations & other

(8
)

(180
)

(13
)

(201
)
$
2,819

$
9,820

$
96

$
12,735

Revenue in excess of billings related to contracts where revenue is recognized over time was $~~0.3~~0.4 billion at ~~both June 30, 2023~~March 31, 2024 and December 31, ~~2022.~~2023. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.

~~Due to the nature of its business, SLB does not have significant backlog.~~ Total backlog was $~~3.2~~5.3 billion at ~~June 30, 2023,~~March 31, 2024, of which approximately 5565% is expected to be recognized as revenue over the next 12 months.

Billings and cash collections in excess of revenue was $~~1.3~~2.0 billion at ~~June 30, 2023~~both March 31, 2024 and $~~1.2~~ ~~billion at~~ December 31, ~~2022.~~2023. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This section of the Form 10-Q discusses second-quarter 2023 results of operations with comparisons to the first-quarter 2023, as well as the first six months of 2023 results of operations with comparisons to the first six months of 2022. Detailed financial information with respect to first-quarter 2023 can be found in Part I, Item 1, “Financial Statements” of SLB’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023.


				(Stated in millions)												(Stated in millions)

	Second Quarter 2023						First Quarter 2023						First Quarter 2024						Fourth Quarter 2023
				Income Before						Income Before						Income Before						Income Before
	Revenue			Taxes			Revenue			Taxes			Revenue			Taxes			Revenue			Taxes
Digital & Integration	$	947		$	322		$	894		$	265		$	953		$	254		$	1,049		$	356
Reservoir Performance		1,643			306			1,503			242			1,725			339			1,735			371
Well Construction		3,362			731			3,261			672			3,368			690			3,426			770
Production Systems		2,313			278			2,207			205			2,818			400			2,944			442
Eliminations & other		(166	)		(56	)		(129	)		7			(157	)		(34	)		(164	)		(71	)
Pretax segment operating income					1,581						1,391						1,649						1,868
Corporate & other (1)					(183	)					(169	)					(191	)					(193	)
Interest income (2)					19						17						34						30
Interest expense (3)					(124	)					(114	)					(110	)					(126	)
Charges and credits (4)					-						36						(25	)					(146	)
	$	8,099		$	1,293		$	7,736		$	1,161		$	8,707		$	1,357		$	8,990		$	1,433

~~The second quarter results reflected significant growth~~First-quarter 2024 revenue of $8.7 billion decreased 3% sequentially as revenue declined 3% both in North America and in the international markets ~~which grew 5% sequentially, particularly~~due to seasonality. However, this impact was less pronounced than in ~~the Middle East & Asia, and offshore.~~prior years as robust activity gains partially offset seasonal effects.

SLB remains confident in its global revenue growth outlook for 2024, with softness in North America ~~revenue grew 3% sequentially benefiting from SLB’s agility across the most resilient basins and market segments, although the rig count~~being offset by upside in the area declined during the quarter. As the upcycle continues to unfold, international- and offshore-led growth is fueling strong margin expansion. SLB is very well positioned in these markets, as international represents nearly 80% of SLB’s global revenue and, offshore constitutes approximately half of that. Internationally, broad revenue growth was experienced across all Divisions and geographic areas with margins expanding.

~~Sequentially, global revenue grew by 5%, driven mostly by~~ the international markets. ~~This was~~The dynamics of this cycle remain intact, with international and offshore growth taking place across all geographies which is benefiting all of SLB’s Divisions.

Margin expansion throughout the year is expected to be driven by tight service and equipment capacity internationally, increased technology adoption, and further operational efficiency. In the second quarter of 2024, SLB expects a seasonal rebound in activity in the Northern Hemisphere coupled with robust activity internationally, led by the Middle East, & Asia, and Africa, which ~~increased 10%, propelled by strong double-digit growth in Saudi Arabia, Kuwait, United Arab Emirates, Egypt, India,~~will drive broad sequential margin expansion across all Divisions and ~~China. Similarly, the offshore businesses in the US Gulf of Mexico, Brazil, Angola, Namibia, and the Caspian Sea posted double-digit growth sequentially.~~geographies.

~~SLB~~The oil and gas industry continues to ~~see positive upstream investment momentum~~benefit from strong market fundamentals driven by a growing demand outlook. This is resulting in a significant baseload of activity, particularly in the international and offshore ~~markets. These~~ markets, ~~are being driven by resilient long-cycle offshore developments,~~closely aligned with SLB’s strengths of our business. As the cycle persists, SLB expects operators to increase their investments in production ~~capacity expansions,~~and reservoir recovery, with the ~~return~~goal of maximizing the efficiency and longevity of their producing assets. This is expected to result in operating expenditures becoming an increasing part of global ~~exploration and appraisal, and the recognition of gas as a critical fuel source for energy security and the energy transition.~~upstream spending over time.

~~As international spending builds~~SLB is already benefiting from these investments, and its recently announced agreement to acquire ChampionX (see Note 1 to the Consolidated Financial Statements) will position SLB to further ~~momentum in~~capture this growing opportunity through the ~~second half~~addition of ~~2023~~a leading production chemicals portfolio and ~~North America moderates as anticipated, this cycle continues to align closely with SLB’s strengths.~~a complementary artificial lift offering.

Digital & Integration revenue of ~~$947~~$953 million ~~increased 6%~~declined 9% sequentially ~~primarily due to~~following strong ~~growth in~~year-end digital sales ~~internationally.~~in the fourth quarter of 2023.

Digital & Integration pretax ~~segment~~ operating margin of ~~34% expanded 438 bps sequentially~~27% contracted 735 basis points (“bps”) primarily due to ~~improved profitability in~~the seasonally lower digital ~~solutions.~~sales.

Reservoir Performance revenue of ~~$1.64~~$1.7 billion ~~grew 9%~~decreased 1% sequentially ~~due primarily to increased~~as seasonal activity ~~internationally. More than half of the revenue growth came from~~reductions in Russia and Asia were partially offset by activity increases in the Middle East, North America, and Europe & ~~Asia.~~Africa.

Reservoir Performance pretax ~~segment~~ operating margin of ~~19% expanded 248~~20% contracted 170 bps ~~sequentially. Profitability improved driven mainly by higher activity and improved operating leverage.~~sequentially as a result of the seasonal revenue decline in international activity.

Well Construction revenue of ~~$3.36~~$3.4 billion ~~increased 3%~~decreased 2% sequentially ~~led by Europe & Africa and the Middle East & Asia.~~due to seasonal activity reductions across all areas.

Well Construction pretax ~~segment~~ operating margin of ~~22% increased 115~~20% contracted 198 bps ~~sequentially driven by international, while North America margin was essentially flat.~~due to the seasonal decline in activity.

Production Systems revenue of ~~$2.31~~$2.8 billion ~~increased 5% sequentially. The strong revenue growth was led~~decreased 4% sequentially driven by ~~the Middle East & Asia, which posted double-digit growth, followed by North America~~seasonally lower sales of subsea production systems, artificial lift, and ~~Latin America. Europe & Africa revenue declined sequentially following the non-repeat of significant~~ midstream production ~~systems project milestones achieved in~~systems.

Production Systems pretax operating margin contracted 84 bps sequentially due to the ~~previous quarter.~~seasonally lower sales.


				(Stated in millions)												(Stated in millions)

	Six Months 2023						Six Months 2022						First Quarter 2024						First Quarter 2023
				Income						Income						Income						Income
				Before						Before						Before						Before
	Revenue			Taxes			Revenue			Taxes			Revenue			Taxes			Revenue			Taxes
Digital & Integration	$	1,840		$	587		$	1,813		$	671		$	953		$	254		$	894		$	265
Reservoir Performance		3,146			548			2,543			355			1,725			339			1,503			242
Well Construction		6,623			1,403			5,083			858			3,368			690			3,261			672
Production Systems		4,520			483			3,497			285			2,818			400			2,207			205
Eliminations & other		(294	)		(49	)		(201	)		(115	)		(157	)		(34	)		(129	)		7
Pretax segment operating income					2,972						2,054						1,649						1,391
Corporate & other (1)					(353	)					(313	)					(191	)					(169	)
Interest income (2)					36						5						34						17
Interest expense (3)					(237	)					(241	)					(110	)					(114	)
Charges and credits (4)					36						285						(25	)					36
	$	15,835		$	2,454		$	12,735		$	1,790		$	8,707		$	1,357		$	7,736		$	1,161

~~Six-month 2023~~First-quarter 2024 revenue of ~~$15.83~~$8.7 billion increased ~~24%~~13% year on year. Approximately half of the year-on-year revenue increase came from the acquisition of the Aker subsea business in the fourth quarter of 2023.

International revenue grew by 18% year on year, ~~led~~compensating for a softer North American market where revenue declined by Well Construction and Production Systems. On a geographic basis, year-on-year revenue growth was broad based with North America revenue increasing 22% due to strong land and offshore drilling and higher sales6%. Excluding the contribution of ~~production systems, while~~the acquired Aker subsea business, international revenue grew ~~25%~~by 10%. ~~International~~

During the first quarter of 2024, SLB continued to benefit from its favorable exposure to the international markets, with year-on-year growth ~~was widespread across all areas, led by Europe & Africa, which grew~~of 29% primarily from higher sales of production systems in Europe and increased activity in offshore Africa. Latin America revenue increased 28% due to robust drilling activity and higher sales of production systems, while revenue in the Middle East & Asia, ~~increased 20% due~~in addition to ~~higher drilling and intervention activity.~~growth of 18% in Europe & Africa.

~~Six-month 2023~~SLB’s Core divisions—consisting of Reservoir Performance, Well Construction, and Production Systems—achieved revenue growth of 13% year on year and expanded pretax segment operating margin ~~of 19% expanded~~ by ~~264 bps as compared to~~more than 200 bps. This growth was supported by investments in long-cycle developments and production capacity expansions, particularly in the ~~same period last year driven by higher activity, improved pricing,~~Middle East & Asia and ~~a more favorable activity mix.~~Latin America.

~~Six-month 2023~~Digital & Integration revenue of ~~$1.84 billion~~$953 million increased 2%7% year on year as ~~strong~~a result of growth in digital sales ~~were largely offset by lower revenue~~ in ~~Asset Performance Solutions (“APS”) projects and decreased exploration data licensing sales. The~~the international markets while 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.was flat year on year.

~~Year~~Digital & Integration pretax operating margin of 27% contracted 300 bps year on year ~~pretax segment operating margin fell by 515 bps to 32% primarily~~ due to the effects of higher APS amortization expense and lower ~~revenue from exploration data licenses and reduced profitability from APS projects.~~gas prices.

~~Six-month 2023~~Reservoir Performance revenue of ~~$3.15~~$1.7 billion ~~increased 24%~~grew 15% year on year due ~~primarily~~ to increased ~~activity internationally.~~stimulation, evaluation, and intervention services across all areas on land and offshore and from both exploration and production activity. More than 70% of the revenue growth was recorded in the Middle East & Asia.

~~Year~~Reservoir Performance pretax operating margin of 20% expanded 356 bps year on year ~~pretax segment operating margin expanded~~with profitability improving internationally driven by ~~346 bps to 17% primarily due to~~higher activity and improved ~~profitability~~pricing from increased technology intensity in ~~stimulation~~evaluation and ~~evaluation activity.~~stimulation.

~~Six-month 2023~~Well Construction revenue of ~~$6.62~~$3.4 billion increased ~~30%~~3% year on year ~~with double-digit growth across all areas, led by North America and Latin America which each grew more than 30%. Double-digit growth was~~ driven by ~~drilling fluids and measurements—both on higher land and offshore activity—along with improved pricing.~~strong international activity, primarily in the Middle East & Asia.

~~Year on year,~~Well Construction pretax ~~segment~~ operating margin ~~expanded 431 bps to 21% with profitability improving across all geographic areas driven by the higher activity and improved pricing.~~of 20% was essentially flat year on year.

~~Six-month 2023~~Production Systems revenue of ~~$4.52~~$2.8 billion increased ~~29%~~28% year on year, mainly due to the acquisition of the Aker subsea business. Excluding the effects of the Aker subsea acquisition, revenue grew 6% year on year driven by ~~strong~~double-digit international sales. Organic year-on-year growth ~~across all areas~~was led by ~~Europe & Africa, North America~~strong international sales of completions, surface production systems, and ~~Latin America.~~artificial lift.

~~Year on year,~~Production Systems pretax ~~segment~~ operating margin expanded ~~254~~490 bps ~~to 11% mainly~~year on year driven by ~~higher artificial lift, surface production system, and subsea production system sales~~a favorable activity mix, execution efficiency, and the ~~easing~~conversion of ~~supply chain constraints.~~improved-priced backlog.

Earnings of equity method investments for the second quarter of 2023 increased $24 million as compared to the first quarter of 2023 driven primarily by increased profitability in certain of SLB's seismic-related investments.

Earnings of equity method investments for the first six months of 2023 increased $59 million as compared to the same period of 2022 driven primarily due to SLB's share of net income associated with its investment in Liberty and increased profitability of certain seismic-related investments. During the first quarter of 2023, SLB sold all of its remaining approximately 9 million shares of Liberty.

Research & engineering and General & administrative expenses, as a percentage of Revenue, for the ~~second quarter and~~ first quarter ofended March 31, 2024 and 2023 ~~and the first six months of 2023 and 2022~~ were as follows:

The effective tax rate was 19% for ~~the second quarter of 2023 was 19.0%, compared to 18.7% for~~both the first quarter of 2024 and 2023.

~~The effective tax rate for~~SLB recorded charges and credits during the first ~~six months~~quarters of ~~2023 was 18.9%, as compared to 16.8% for the same period of 2022. The increase in the effective tax rate was primarily due to the~~2024 and 2023. These charges and credits, which are summarized below, are more fully described in Note 2 to the Consolidated Financial ~~Statements. These credits reduced the effective tax rate during the first six months of 2022 by two percentage points.~~Statements.

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 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.~~

~~SLB did not record any charges or credits during the second quarter of 2023.~~2024:

~~SLB recorded the following credits during the first six months of 2022, all of which are classified in~~ ~~Interest & other income~~ ~~in the~~ ~~Consolidated Statement of Income~~.

Details of the components of liquidity as well as changes in liquidity are as follows:


	Six Months Ended Jun. 30,						Three Months Ended Mar. 31,
Changes in Liquidity:	2023			2022			2024			2023
Net income	$	1,990		$	1,490		$	1,098		$	944
Gain on sale of Liberty shares		(36	)		(242	)
Gain on sale of real estate		-			(43	)
Charges and credits								25			(36	)
Depreciation and amortization (2)		1,124			1,065			600			563
Earnings of equity method investments, less dividends received		(79	)		(22	)		(16	)		(32	)
Deferred taxes		118			11			(30	)		112
Stock-based compensation expense		160			160			100			81
Increase in working capital		(1,286	)		(1,884	)		(1,486	)		(1,300	)
Other		(53	)		4			36			(2	)
Cash flow from operations		1,938			539			327			330
Capital expenditures		(881	)		(664	)		(399	)		(410	)
APS investments		(253	)		(311	)		(121	)		(133	)
Exploration data costs capitalized		(83	)		(64	)		(29	)		(52	)
Free cash flow (3)		721			(500	)		(222	)		(265	)
Dividends paid		(605	)		(352	)		(357	)		(249	)
Stock repurchase program		(443	)		-			(270	)		(230	)
Proceeds from employee stock plans		124			93			100			86
Proceeds from exercise of stock options								15			35
Taxes paid on net settled stock-based compensation awards		(144	)		(85	)		(78	)		(88	)
Business acquisitions and investments, net of cash acquired plus debt assumed		(262	)		(8	)
Business acquisitions and investments, net of cash acquired								(27	)		(244	)
Proceeds from sale of Liberty shares		137			513			-			137
Proceeds from sale of real estate		-			120
Other		(167	)		(86	)		40			(84	)
Increase in net debt before impact of changes in foreign exchange rates		(639	)		(305	)		(799	)		(902	)
Impact of changes in foreign exchange rates on net debt		(170	)		330			96			(100	)
(Increase) decrease in net debt		(809	)		25
Increase in net debt								(703	)		(1,002	)
Net debt, beginning of period (1)		(9,332	)		(11,056	)		(7,976	)		(9,332	)
Net debt, end of period (1)	$	(10,141	)	$	(11,031	)	$	(8,679	)	$	(10,334	)

Key liquidity events during the first ~~six~~three months of ~~2023~~2024 and ~~2022~~2023 included:

As of ~~June 30, 2023,~~March 31, 2024, SLB had ~~$3.19~~$3.5 billion of cash and short-term investments on hand and committed debt facility agreements with commercial banks aggregating ~~$6.57~~$5.0 billion, ~~all~~$4.7 billion of which was available and unused. SLB believes these amounts are sufficient to meet future business requirements for at least the next 12 months and beyond.

Borrowings under the commercial paper programs at March 31, 2024 were $345 million all of which were classified in Short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheet. There were no borrowings under ~~SLB's~~the commercial paper programs at ~~June 30,~~December 31, 2023.

SLB has a global footprint in more than 100 countries. As of ~~June 30, 2023,~~March 31, 2024, only four of those countries individually accounted for greater than 5% of SLB’s net receivable balance. ~~Two~~Only one of these countries, ~~the United States and~~ Mexico, ~~each~~ represented greater than 10% of such receivables.

~~Included in~~ ~~Receivables, less allowance for doubtful~~ As of March 31, 2024, Mexico represented 12% of SLB's net accounts ~~in the~~ ~~Consolidated Balance Sheet~~ ~~as of June 30, 2023 was approximately $1.0 billion of receivables relating to Mexico.~~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.

In March 2022, SLB decided to immediately suspend new investment and technology deployment to its Russia operations. In July 2023, SLB announced that it was halting shipments of products and technology into Russia from all SLB facilities worldwide in response to the continued expansion of international sanctions. This follows SLB’s previous ban on shipments from SLB facilities in the United States, United Kingdom, the European Union and Canada into Russia. Russia represented approximately 5% of SLB’s worldwide revenue during the first six months of 2023. The carrying value of SLB’s net assets in Russia was approximately $0.7 billion as of June 30, 2023. This consisted of $0.3 billion of receivables, $0.3 billion of fixed assets, $0.5 billion of other assets and $0.4 billion of current liabilities.

SLB continues to actively monitor the dynamic situation in Ukraine and applicable laws, sanctions, and trade control restrictions resulting from the conflict. The extent to which SLB’s operations and financial results 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 SLB’s 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 aggravate the risk factors that SLB identified in its Annual Report on Form 10-K for the year ended December 31, 2022, including cybersecurity, regulatory, and reputational risks.

This ~~second-quarter 2023~~first-quarter 2024 Form 10-Q, 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,” “projected,” “projections,” “precursor,” “forecast,” “outlook,” “expectations,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,” “should,” “could,” “would,” “will,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about SLB’s financial and performance targets and other forecasts or expectations regarding, or dependent on, its business outlook; growth for SLB as a whole and for each of its Divisions (and for specified business lines, geographic areas or technologies within each Division); 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; ~~SLB’s response to the COVID-19 pandemic and its preparedness for other widespread health emergencies;~~ 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 to risks and uncertainties, including, but not limited to, changing global economic and geopolitical conditions; changes in exploration and production spending by SLB’s customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of SLB’s customers and suppliers; SLB’s inability to achieve its financial and performance targets and other forecasts and expectations; SLB’s inability to achieve net-zero carbon emissions goals or interim emissions reduction goals; general

economic, geopolitical and business conditions in key regions of the world; 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-Q and our most recent Form 10-K and Forms 8-K filed with or furnished to the SEC.

This Form 10-Q also includes forward-looking statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction. Factors and risks that may impact future results and performance include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the possibility that ChampionX stockholders will not adopt the merger agreement in respect of the proposed transaction; the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction, as well as the risk factors discussed in SLB’s and ChampionX’s most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the SEC.

If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this Form 10-Q regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Statements in this Form 10-Q are made as of ~~July 26, 2023,~~April 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.

For quantitative and qualitative disclosures about market risk affecting SLB, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” of the SLB Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022.~~2023. SLB’s exposure to market risk has not changed materially since December 31, ~~2022.~~2023.

SLB has carried out an evaluation under the supervision and with the participation of SLB’s management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), of the effectiveness of SLB’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the CEO and the CFO have concluded that, as of the end of the period covered by this report, SLB’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that SLB files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. SLB’s disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to its management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding required disclosure. There was no change in SLB’s internal control over financial reporting during the quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, SLB’s internal control over financial reporting.

The information with respect to this Item 1 is set forth under Note 9—Contingencies, in the accompanying Consolidated Financial Statements.

As of the date of this filing, there have been no material changes from the risk factors disclosed in Part 1, Item 1A, of SLB’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022.~~2023, except as follows:

We or ChampionX may terminate the merger agreement between the parties (the “merger agreement”) in certain circumstances as described in our Current Report on Form 8-K filed with the SEC on April 2, 2024. If the proposed acquisition is not completed for any reason, including as a result of failure to obtain required regulatory approvals or if the ChampionX stockholders fail to approve the acquisition, the market price of our common stock may be adversely affected; we may experience negative reactions from the financial markets, customers, suppliers and other constituencies; we will be required to pay certain costs relating to the acquisition; and SLB may be required to pay a termination fee under certain circumstances set forth in the merger agreement.

We may fail to realize the anticipated benefits of the proposed acquisition of ChampionX.

If the acquisition is completed, the success of the acquisition will depend on, among other things, our ability to combine our business with that of ChampionX in a manner that facilitates growth opportunities and realizes anticipated synergies. If we are not able to successfully achieve these objectives, the anticipated benefits of the acquisition may not be realized fully, or at all, or may take longer to realize than expected.

On January 21, 2016, the SLB Board of Directors approved a $10 billion share repurchase program for SLB common stock. As of ~~June 30, 2023,~~March 31, 2024, SLB had repurchased ~~$1.5~~$2.0 billion of SLB common stock under this program.

SLB's common stock repurchase activity for the three months ended ~~June 30, 2023~~March 31, 2024 was as follows:

Our mining operations are subject to regulation by the federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this report.

In 2013, SLB completed the wind down of its service operations in Iran. Prior to this, certain non-US subsidiaries provided oilfield services to the National Iranian Oil Company and certain of its affiliates (“NIOC”).

SLB’s residual transactions or dealings with the government of Iran during the ~~second~~first quarter of ~~2023~~2024 consisted of payments of taxes and other typical governmental charges. Certain non-US subsidiaries of SLB maintain depository accounts at the Dubai branch of Bank Saderat Iran (“Saderat”), and at Bank Tejarat (“Tejarat”) in Tehran and in Kish for the deposit by NIOC of amounts owed to non-US subsidiaries of SLB for prior services rendered in Iran and for the maintenance of such amounts previously received. One non-US subsidiary also maintained an account at Tejarat for payment of local expenses such as taxes. SLB anticipates that it will discontinue dealings with Saderat and Tejarat following the receipt of all amounts owed to SLB for prior services rendered in Iran.

*** Certain of the exhibits and schedules to this exhibit have been omitted in accordance with Regulation S-K Item 601(b)(2). SLB

agrees to furnish supplementally a copy of all omitted exhibits and schedules to the SEC upon its request.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Curaçao		52-0684746
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

42 rue Saint-Dominique
Paris, France		75007

5599 San Felipe
Houston, Texas, United States of America		77056

62 Buckingham Gate
London, United Kingdom		SW1E 6AJ

Parkstraat 83
The Hague, The Netherlands		2514 JG
(Addresses of principal executive offices)		(Zip Codes)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
common stock, par value $0.01 per share	SLB	New York Stock Exchange


		Page
PART I	Financial Information

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1614

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	2119

Item 4.	Controls and Procedures	2119

PART II	Other Information

Item 1.	Legal Proceedings	2220

Item 1A.	Risk Factors	2220

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2220

Item 3.	Defaults Upon Senior Securities	2220

Item 4.	Mine Safety Disclosures	2220

Item 5.	Other Information	2221

Item 6.	Exhibits	2322


	(Stated in thousands, except per share amounts)

	Total number of shares purchased		Average price paid per share		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
April 2023		1,439.2	$	50.76		1,439.2	$	8,669,119
May 2023		1,781.0	$	45.36		1,781.0	$	8,588,333
June 2023		1,285.0	$	46.22		1,285.0	$	8,528,945
		4,505.2	$	47.33		4,505.2


	(Stated in thousands, except per share amounts)

	Total number of shares purchased		Average price paid per share		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
January 2024		1,428.6	$	50.63		1,428.6	$	8,205,969
February 2024		2,173.2	$	48.37		2,173.2	$	8,100,861
March 2024		1,790.2	$	51.86		1,790.2	$	8,008,018
		5,392.0	$	50.13		5,392.0


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐


			(Stated in millions)								(Stated in millions)

						Shares								Shares
	Issued		In Treasury			Outstanding			Issued		In Treasury			Outstanding
Balance, January 1, 2023		1,434		(14	)		1,420
Shares sold to optionees, less shares exchanged		-		1			1
Balance, January 1, 2024										1,439		(12	)		1,427
Vesting of restricted stock		-		6			6			-		5			5
Shares issued under employee stock purchase plan		-		3			3			-		2			2
Stock repurchase program		-		(9	)		(9	)		-		(5	)		(5	)
Balance, June 30, 2023		1,434		(13	)		1,421
Balance, March 31, 2024										1,439		(10	)		1,429


	(Stated in millions)

	Pretax Credit			Tax Expense			Net
First quarter:
Gain on sale of Liberty shares	$	(26	)	$	(4	)	$	(22	)
Second quarter:
Gain on sale of Liberty shares		(216	)		(13	)		(203	)
Gain on sale of real estate		(43	)		(2	)		(41	)
	$	(285	)	$	(19	)	$	(266	)


	Second			First
	Quarter			Quarter			Six Months						First Quarter
	2023			2023			2023			2022			2024			2023
Research & engineering		2.0	%		2.3	%		2.1	%		2.3	%		2.1	%		2.3	%
General & administrative		1.2	%		1.2	%		1.2	%		1.4	%		1.4	%		1.2	%


(Stated in millions, except per share amounts)

	Total cost		Total number		Average price
	of shares		of shares		paid per
	purchased		purchased		share
Three months ended March 31, 2024	$	270		5.4	$	50.13
Three months ended March 31, 2023	$	230		4.4	$	52.65


		SCHLUMBERGER LIMITED
Date:	~~July 26, 2023~~April 24, 2024	/s/ Howard Guild
		Howard Guild
		Chief Accounting Officer and Duly Authorized Signatory