Exhibit 99.2
Third-Quarter 2012 Results—Supplemental Information
| 1) | What were multiclient sales in the third quarter of 2012? |
Multiclient sales, including transfer fees, were $221 million in the third quarter of 2012.
| 2) | What was the WesternGeco backlog at the end of the third quarter of 2012? |
WesternGeco backlog, which is based on signed contracts with customers, was approximately $967 million at the end of the third quarter of 2012.
| 3) | What were the Schlumberger pretax and after-tax returns-on-sales from continuing operations for the third quarter of 2012, excluding charges and credits? |
The Schlumberger pretax return on sales from continuing operations, excluding charges and credits, was 17.8% for the third quarter of 2012 and the second quarter of 2012.
The Schlumberger after-tax return on sales from continuing operations, excluding charges and credits, was 13.6% for the third quarter of 2012 versus 13.4% for the second quarter of 2012.
| 4) | What was the Schlumberger Net Debt† at the end of the third quarter of 2012? |
Net debt was $6.2 billion at September 30, 2012—$537 million lower than at the end of the previous quarter.
Liquidity during the quarter was used primarily for capital expenditures of $1.08 billion, $80 million of acquisitions and $149 million of stock repurchases. This was partially offset by the proceeds from the sale of Schlumberger’s 56% equity ownership interest in CE Franklin for $122 million.
| † | Net Debtrepresents gross debt less cash, short-term investments and fixed income investments, held to maturity. |
| 5) | What was included in “Interest and other income, net” for the third quarter of 2012? |
“Interest and other income, net” for the third quarter of 2012 consisted of the following:
| | | | |
| | | ($ millions) | |
Equity in net earnings of affiliated companies | | $ | 36 | |
Interest Income | | | 8 | |
| | | | |
| | $ | 44 | |
| 6) | How did interest income and interest expense change during the third quarter of 2012? |
Interest income of $8 million was up $2 million sequentially. Interest expense of $89 million was up $11 million sequentially.
| 7) | Why was there a difference between the consolidated Schlumberger pretax income and the total pretax income of Oilfield Services? |
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 third quarter of 2012? |
The ETR for the third quarter of 2012 was 23.6% and in the prior quarter was 24.0%, excluding charges and credits in both periods.
| 9) | What is the capex guidance for the full year 2012? |
Schlumberger capex is still expected to be approximately $4.5 billion for the full-year 2012.
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 ) | |
| | | Third Quarter 2012 | |
| | | Pretax | | | Tax | | | Noncont.
Interest | | | Net | | | Diluted
EPS | |
Schlumberger income from continuing operations, as reported | | $ | 1,857 | | | $ | 442 | | | $ | 3 | | | $ | 1,412 | | | $ | 1.06 | |
Merger and integration costs | | | 32 | | | | 4 | | | | — | | | | 28 | | | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | |
Schlumberger income from continuing operations, excluding charges & credits | | $ | 1,889 | | | $ | 446 | | | $ | 3 | | | $ | 1,440 | | | $ | 1.08 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Third Quarter 2012 | |
| | | GAAP | | | Excluding
Charges | |
Pretax return on sales | | | 17.5 | % | | | 17.8 | % |
| | |
After tax return on sales | | | 13.3 | % | | | 13.6 | % |
| | |
Effective tax rate | | | 23.8 | % | | | 23.6 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | ( Stated in millions except per share amounts ) | |
| | | Second Quarter 2012 | |
| | | Pretax | | | Tax | | | Noncont.
Interest | | | Net | | | Diluted
EPS | |
Schlumberger income from continuing operations, as reported | | $ | 1,839 | | | $ | 445 | | | $ | 12 | | | $ | 1,382 | | | $ | 1.03 | |
Merger and integration costs | | | 22 | | | | 1 | | | | — | | | | 21 | | | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | |
Schlumberger income from continuing operations, excluding charges & credits | | $ | 1,861 | | | $ | 446 | | | $ | 12 | | | $ | 1,403 | | | $ | 1.05 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Second Quarter 2012 | |
| | | GAAP | | | Excluding
Charges | |
Pretax return on sales | | | 17.6 | % | | | 17.8 | % |
| | |
After tax return on sales | | | 13.2 | % | | | 13.4 | % |
| | |
Effective tax rate | | | 24.2 | % | | | 24.0 | % |
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This document, the third-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; operational delays; 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 third-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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