Exhibit 99.2
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First-Quarter 2012 Results—Supplemental Information
1) | What were multiclient sales in the first quarter of 2012? |
Multiclient sales, including transfer fees, were $215 million in the first quarter of 2012.
2) | What was the WesternGeco backlog at the end of the first quarter of 2012? |
WesternGeco backlog, which is based on signed contracts with customers, was approximately $1.16 billion at the end of the first quarter of 2012.
3) | What were the Schlumberger pretax and after-tax returns-on-sales for the first quarter of 2012, excluding charges and credits? |
The Schlumberger pretax return on sales, excluding charges and credits, was 16.4% for the first quarter of 2012 versus 17.9% for the fourth quarter of 2011.
The Schlumberger after-tax return on sales, excluding charges and credits, was 12.4% for the first quarter of 2012 versus 13.6% for the fourth quarter of 2011.
4) | What was the Schlumberger Net Debt† at the end of the first quarter of 2012? |
Net debt was $5.8 billion at March 31, 2012—$951 million higher than at the end of the previous quarter.
Liquidity was used primarily for working capital of $1.57 billion and capital expenditures of $961 million during the quarter.
† | Net Debtrepresents gross debt less cash, short-term investments and fixed income investments, held to maturity. |
5) | What was included in “Interest and other income, net” for the first quarter of 2012? |
“Interest and other income, net” for the first quarter of 2012 consisted of the following:
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| | ($ millions) | |
Equity in net earnings of affiliated companies | | $ | 37 | |
Interest Income | | | 10 | |
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| | $ | 47 | |
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6) | How did interest income and interest expense change during the first quarter of 2012? |
Interest income of $10 million was down $1 million sequentially. Interest expense of $80 million was down $6 million sequentially.
7) | Why was there a difference between the consolidated Schlumberger pretax income and the total pretax income of Oilfield Services and Distribution? |
The difference consisted of such items as corporate expenses and interest income and interest expense not allocated to the segments, as well as interest on postretirement medical benefits, stock-based compensation expense and the amortization expense associated with intangible assets recorded in connection with the Smith acquisition.
8) | What was the effective tax rate (ETR), excluding charges and credits, for the first quarter of 2012? |
The ETR for the first quarter of 2012 was 23.8% which is the same as in the prior quarter, excluding charges and credits in both periods.
The ETR for full-year 2012 is expected to be in the mid twenties, although some volatility may be experienced in the ETR on a quarterly basis primarily due to the geographic mix of earnings.
9) | What is the capex guidance for 2012? |
Schlumberger capex is still expected to be approximately $4.5 billion for the full-year 2012.
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D) | Non-GAAP Financial Measures |
In addition to financial results determined in accordance with US generally accepted accounting principles (GAAP), this document also includes non-GAAP financial measures (as defined under SEC Regulation G). The following is a reconciliation of these non-GAAP measures to the comparable GAAP measures:
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| | (Stated in millions except per share amounts) | |
| | First Quarter 2012 | |
| | Pretax | | | Tax | | | Noncont. Interest | | | Net | | | Diluted EPS | |
Net income attributable to Schlumberger, as reported | | $ | 1,721 | | | $ | 411 | | | $ | 9 | | | $ | 1,301 | | | $ | 0.97 | |
Merger and integration costs | | | 15 | | | | 2 | | | | — | | | | 13 | | | | 0.01 | |
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Net income attributable to Schlumberger, excluding charges & credits | | $ | 1,736 | | | $ | 413 | | | $ | 9 | | | $ | 1,314 | | | $ | 0.98 | |
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| | First Quarter 2012 | |
| | GAAP | | | Excluding Charges | |
Pretax return on sales | | | 16.2 | % | | | 16.4 | % |
After-tax return on sales | | | 12.3 | % | | | 12.4 | % |
Effective tax rate | | | 23.9 | % | | | 23.8 | % |
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| | (Stated in millions except per share amounts) | |
| | Fourth Quarter 2011 | |
| | Pretax | | | Tax | | | Noncont. Interest | | | Net | | | Diluted EPS(*) | |
Net income attributable to Schlumberger, as reported | | $ | 1,886 | | | $ | 466 | | | $ | 6 | | | $ | 1,414 | | | $ | 1.05 | |
Merger and integration costs | | | 22 | | | | 2 | | | | — | | | | 20 | | | | 0.01 | |
Write-off of assets in Libya | | | 60 | | | | — | | | | — | | | | 60 | | | | 0.04 | |
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Net income attributable to Schlumberger, excluding charges & credits | | $ | 1,968 | | | $ | 468 | | | $ | 6 | | | $ | 1,494 | | | $ | 1.11 | |
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| | Fourth Quarter 2011 | |
| | GAAP | | | Excluding Charges | |
Pretax return on sales | | | 17.2 | % | | | 17.9 | % |
After-tax return on sales | | | 12.9 | % | | | 13.6 | % |
Effective tax rate | | | 24.7 | % | | | 23.8 | % |
(*) | Does not add due to rounding |
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This document, the first-quarter 2012 earnings release and other statements we make contain “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts, such as our forecasts or expectations regarding business outlook; growth for Schlumberger as a whole and for each of its segments (and for specified products or geographic areas within each segment); oil and natural gas demand and production growth; oil and natural gas prices; Schlumberger’s effective tax rate; improvements in operating procedures and technology; capital expenditures by Schlumberger and the oil and gas industry; the business strategies of Schlumberger’s customers; future global economic conditions; and future results of operations. These statements are subject to risks and uncertainties, including, but not limited to, global economic conditions; changes in exploration and production spending by Schlumberger’s customers and changes in the level of oil and natural gas exploration and development; general economic, political and business conditions in key regions of the world; pricing erosion; weather and seasonal factors; the ability to respond to increased activity levels; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services and climate-related initiatives; the inability of technology to meet new challenges in exploration; and other risks and uncertainties detailed in our first-quarter 2012 earnings release, our most recent Form 10-K and other filings that we make with the Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should our underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. Schlumberger disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
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