Exhibit 99.2
Fourth-Quarter 2013 Results—Supplemental Information
| 1) | What were multiclient sales in the fourth quarter of 2013? |
Multiclient sales, including transfer fees, were $283 million in the fourth quarter of 2013.
| 2) | What was the WesternGeco backlog at the end of the fourth quarter of 2013? |
WesternGeco backlog, which is based on signed contracts with customers, was $940 million at the end of the fourth quarter of 2013.
| 3) | What were the Schlumberger pretax and after-tax returns-on-sales from continuing operations for the fourth quarter of 2013, excluding charges and credits? |
The Schlumberger pretax return on sales from continuing operations, excluding charges and credits, was 19.5% for the fourth quarter of 2013 and 19.2% for the third quarter of 2013.
The Schlumberger after-tax return on sales from continuing operations, excluding charges and credits, was 15.0% for the fourth quarter of 2013 versus 14.8% for the third quarter of 2013.
| 4) | What was the Schlumberger Net Debt† at the end of the fourth quarter of 2013? |
Net debt was $4.44 billion at December 31, 2013—a $1.17 billion decrease as compared to the end of the previous quarter.
Liquidity during the quarter was provided by the improvement in working capital of $1.16 billion. Liquidity was used primarily for capital expenditures of $1.19 billion and stock buy-back of $1.07 billion.
†Net Debtrepresents gross debt less cash, short-term investments and fixed income investments, held to maturity.
| 5) | What was included in “Interest and other income, net” for the fourth quarter of 2013? |
“Interest and other income, net” for the fourth quarter of 2013 consisted of the following:
| | | | |
| | | ($ millions) | |
Equity in net earnings of affiliated companies | | $ | 48 | |
Interest Income | | | 11 | |
| | | | |
| | $ | 59 | |
| 6) | How did interest income and interest expense change during the fourth quarter of 2013? |
Interest income of $11 million increased $2 million sequentially. Interest expense of $97 million decreased $1 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 2010 Smith acquisition.
| 8) | What was the effective tax rate (ETR), excluding charges and credits, for the fourth quarter of 2013? |
The ETR for the fourth quarter of 2013 was 22.3% and 22.7% in the prior quarter. The ETR in both quarters excluded charges and credits.
| 9) | What is the capex guidance for the full year 2014? |
Schlumberger capex is expected to be $3.8 billion for 2014. Capex in 2013 was $3.9 billion.
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) | |
| | | Fourth Quarter 2013 | |
| | | Pretax | | | Tax | | | Noncont.
Interest | | | Net | | | Diluted
EPS | |
Schlumberger income from continuing operations, as reported | | $ | 2,170 | | | $ | 487 | | | $ | 19 | | | $ | 1,664 | | | $ | 1.26 | |
Provision for accounts receivable(1) | | | 152 | | | | 30 | | | | — | | | | 122 | | | | 0.09 | |
| | | | | | | | | | | | | | | | | | | | |
Schlumberger income from continuing operations, excluding charges & credits | | $ | 2,322 | | | $ | 517 | | | $ | 19 | | | $ | 1,786 | | | $ | 1.35 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Fourth Quarter 2013 | |
| | | GAAP | | | Excluding
Charges | |
Pretax return on sales | | | 18.2 | % | | | 19.5 | % |
After-tax return on sales | | | 14.0 | % | | | 15.0 | % |
Effective tax rate | | | 22.4 | % | | | 22.3 | % |
There were no charges or credits in the Third Quarter 2013.
| (1) | Relates to a client in Brazil that filed for bankruptcy. |
| | | | | | | | |
Components of Net Debt | | Dec. 31,
2013 | | | Sept. 30,
2013 | |
Cash and short-term investments | | $ | 8,370 | | | $ | 6,435 | |
Fixed income investments, held to maturity | | | 363 | | | | 363 | |
Short-term borrowings and current portion of long-term debt | | | (2,783 | ) | | | (2,498 | ) |
Long-term debt | | | (10,393 | ) | | | (9,916 | ) |
| | | | | | | | |
| | $ | (4,443 | ) | | $ | (5,616 | ) |
| | | | | | | | |
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This document, the fourth-quarter and full-year 2013 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; 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; production declines; 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 fourth-quarter and full year 2013 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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