SLB Announces First-Quarter 2023 Results

(BUSINESS WIRE) -- SLB (NYSE: SLB) today announced results for the first-quarter 2023.

First-Quarter Results

Strong Growth and Broad-Based Attributes

SLB CEO Olivier Le Peuch commented, “I am very pleased with our start to 2023. We delivered strong year-over-year revenue growth and margin expansion at a scale that instills further confidence in our full-year financial ambition. The quarter was defined by strong activity dynamics offshore and in the broader international basins, most notably in Well Construction and Production Systems.

“Compared to the same period last year, revenue grew 30%; adjusted EBITDA increased 43%; EPS—excluding charges and credits—increased 85%; and pretax segment operating margin expanded 298 basis points (bps). All Divisions grew, both in North America and in the international markets, reflecting the strength of our portfolio across geographies and business lines. Revenue growth surpassed rig count growth both in North America and internationally—representing the highest year-on-year quarterly growth in more than a decade.

“Sequentially, revenue grew 4% in North America, our eighth consecutive quarter of growth, benefiting from our exposure to the most resilient basins and market segments. Internationally, the sequential revenue decline was less pronounced than historical trends as seasonal effects were partially offset by robust activity gains.

“We continue to see positive pricing as our performance differentiates, technology adoption increases, contract terms are adjusted to offset inflation, and service capacity continues to tighten in key international markets. In this environment, our customers are more actively collaborating with us to improve their operational performance, attain decarbonization objectives, and lower overall costs through the increased use of our differentiated technologies.

“First-quarter cash flow from operations was $330 million, reflecting the seasonal first-quarter buildup of working capital that will support our anticipated growth for the year and the payment of our annual incentives. Free cash flow generation is expected to accelerate throughout the year, consistent with historical trends.

Great Start to the Year Anchored on a Very Solid Core

“Year over year, our Core Divisions collectively grew by 34% and expanded operating margins by more than 300 bps. Each of the three Core Divisions delivered very strong growth and expanded margins—driven by increased activity, pricing, and technology adoption.

“In our Core, we continue to leverage the industry’s most comprehensive technology portfolio with disruptive fit-for-basin technologies, advanced digital solutions, and an unmatched ability to integrate across the entire value chain—from subsurface to midstream.

“In our Digital & Integration Division, digital sales posted strong year-on-year growth that is on track with our strategic ambition as we continue to secure new contracts and accelerate cloud and edge solutions. However, the increase in digital sales during the quarter was largely offset by a decline in Asset Performance Solutions (APS) revenue, arising from production interruptions in Ecuador and lower revenue from our Palliser asset in Canada.

A Resilient Cycle—Powered by the International and Offshore Markets

“Looking at the macro, we maintain our very constructive multiyear outlook as the upcycle attributes and key activity drivers continue to evolve very positively. The international and offshore markets continue to experience a strong resurgence of activity driven by resilient long-cycle development and capacity expansion projects. In contrast, the North American land market, which has led this upcycle in the early innings, could potentially result in an activity plateau in 2023 due to lower gas prices and capital restraint by private E&P operators.

“On balance, the global activity outlook for the full year remains very solid. Through the first quarter, the resilience, breadth, and durability of this upcycle have become more evident, particularly in the international markets. These attributes are highlighted by the following factors.

“First, there is broader recognition of the positive long-term demand outlook for oil and gas and the potential for a stronger demand rebound in the second half of the year. In addition, recent OPEC+ decisions continue to keep commodity prices at supportive levels—providing operators increased confidence to execute their projects.

“Second, broad-based investments to expand oil capacity and diversify gas supply have been reinforced by the capex plans recently announced by major IOCs and NOCs. Most of the announced budgets highlight a significant increase in spending that supports multiyear activity growth in key resource basins all over the world. In fact, we expect investments will become even more extensive internationally as the pursuit of supply diversity remains a global priority and gathers greater urgency.

“And third, the durability of the current cycle is underscored by the nature of the ongoing investments with the emergence of gas as a long-term energy transition fuel and enabler of energy security, the prominence of long-cycle projects, and the pivot to the Middle East and offshore basins as the anchors of supply growth. Finally, the return of global exploration and appraisal will likely extend this cycle of investment for a number of years.

“Taken together, these market dynamics play to our strengths and create an advantaged position for SLB. Our strategy, global footprint, unique integration capabilities, and portfolio actions have strengthened our ability to support our customers.

Sequential Revenue Growth and Margin Expansion Ahead

“Looking ahead to the second quarter, we expect strong growth with seasonal recovery in the Northern Hemisphere, capacity expansion projects in the Middle East that are in various stages of ramp-up, and robust activity in Asia and Sub-Sahara Africa. This growth scenario provides support for broad sequential margin expansion across the Divisions and geographies.

“I am excited about our start to the year, which gives us even further confidence in our full-year 2023 and through-cycle targets. We are laser-focused on execution, supporting our customers, and delivering on our goals for the year.

“I would like to thank our team for delivering these strong results and performing for our customers and stakeholders.”

Other Events

During the quarter, SLB repurchased approximately 4.4 million shares of its common stock at an average price of $52.65 per share for a total purchase price of $230 million.

On February 3, 2023, SLB completed the acquisition of Gyrodata Incorporated, a global company specializing in gyroscopic wellbore positioning and survey technology. The transaction incorporates Gyrodata’s wellbore placement and surveying technologies within SLB’s Well Construction business, further enhancing its ability to deliver innovative drilling solutions to customers.

On April 20, 2023, SLB’s Board of Directors approved a quarterly cash dividend of $0.25 per share of outstanding common stock, payable on July 13, 2023, to stockholders of record on June 7, 2023.

First-Quarter Revenue by Geographical Area

International

Revenue in Latin America of $1.6 billion increased 34% year on year due to robust drilling activity and improved pricing, higher sales of offshore production systems in Brazil and Guyana, and increased stimulation work in Argentina. Sequentially, revenue was essentially flat as higher drilling activity was offset by reduced APS revenue in Ecuador due to production interruptions.

Europe & Africa revenue of $2.0 billion grew 41% year on year primarily from higher sales of production systems in Europe and Scandinavia and increased exploration and production activity offshore Africa. Sequentially, revenue decreased 5% primarily driven by Russia. Excluding Russia, revenue grew 2% sequentially due to higher drilling activity from new projects in Angola, Gabon, and Namibia and increased sales of production systems in Europe.

Revenue in the Middle East & Asia of $2.4 billion increased 18% year on year due to higher drilling, intervention, and evaluation activity in Saudi Arabia, United Arab Emirates, Qatar, and Oman and across Southeast Asia and Australia. Sequentially, revenue decreased 5% due to seasonally lower activity in Asia, weather-impacted stimulation activity in Saudi Arabia, and reduced sales of production systems across the area following the strong year-end sales in the previous quarter.

North America

North America revenue of $1.7 billion grew 32% year on year due to strong land and offshore drilling and higher sales of production systems. US land revenue increased, driven by Well Construction revenue growth that outperformed the rig count growth, in addition to higher Production Systems revenue. North America offshore revenue grew due to increases in drilling activity, exploration data licensing sales, and sales of subsea production systems in the US Gulf of Mexico. Sequentially, North America revenue increased 4% due to higher land and offshore drilling and increased sales of subsea production systems, which were partially offset by lower APS revenue in Canada. Revenue from both Well Construction and Production Systems grew 9% sequentially.

First-Quarter Results by Division

Digital & Integration

Digital & Integration revenue of $894 million increased 4% year on year as a result of continued growth in digital sales and increased exploration data license sales in the US Gulf of Mexico, which were partially offset by lower revenue from APS projects.

Sequentially, revenue declined 12% due to lower revenue from APS projects and seasonally lower sales of digital and exploration data licenses following strong year-end sales. The APS revenue decline resulted primarily from a temporary production interruption in our projects in Ecuador due to a pipeline disruption. Additionally, lower commodity prices impacted our project in Canada.

Digital & Integration pretax operating margin of 30% decreased 440 bps year on year as the continued growth in digital sales was more than offset by lower APS revenue.

Sequentially, pretax operating margin decreased eight percentage points due to seasonally lower sales of digital and exploration data licenses and lower APS revenue. Pretax operating margin is expected to expand next quarter on higher digital sales and increased revenue from APS projects.

Reservoir Performance

Reservoir Performance revenue of $1.5 billion grew 24% year on year due to increased intervention, evaluation, and stimulation services across all areas on land and offshore and from both exploration and production activity. More than 30% revenue growth was recorded both in Latin America, mainly from higher intervention activity, and in Europe & Africa, largely from new evaluation and stimulation projects.

Sequentially, revenue decreased 3% due to seasonal activity reductions in Europe and Asia, weather-impacted activity in the Middle East, and lower revenue in Russia. These declines were partially offset by strong evaluation activity in Latin America, while North America revenue was essentially flat.

Reservoir Performance pretax operating margin of 16% expanded 291 bps year on year with profitability improving across the international market driven by higher activity and improved pricing across evaluation, intervention, and stimulation.

Sequentially, pretax operating margin decreased 207 bps due to reduced profitability from the seasonal decline in stimulation activity internationally, primarily in the Northern Hemisphere, which more than offset the strong margin expansion in North America.

Well Construction

Well Construction revenue of $3.3 billion increased 36% year on year driven by strong activity and solid pricing improvements led by North America and Latin America, both of which grew more than 45%. Europe & Africa revenue increased 38% while Middle East & Asia revenue grew 24% year on year. Double-digit revenue growth was recorded both on land and offshore in fluids, measurements, integrated well construction, drilling, and equipment sales.

Sequentially, revenue was slightly higher, driven by increased drilling, measurements, and integrated well construction activity, mainly on land and offshore North America; in Latin America, primarily in Mexico and Brazil; and offshore Africa. These increases were partially offset by lower revenue in Russia and seasonal reductions in Asia.

Well Construction pretax operating margin of 21% expanded 444 bps year on year with profitability improving in measurements, integrated drilling, equipment sales, and fluids across most areas driven by higher activity and improved pricing.

Sequentially, pretax operating margin was essentially flat as improved profitability in Latin America was offset by reduced margin in the Northern Hemisphere due to seasonality.

Production Systems

Production Systems revenue of $2.2 billion increased 38% year on year driven by strong activity across all areas led by Europe & Africa and Latin America, which grew 63% and 50%, respectively. North America revenue increased 32% while Middle East & Asia revenue grew 11% year on year. Midstream, subsea, artificial lift sales, completions, and valves each recorded double-digit growth across North America and internationally.

Sequentially, revenue was flat. Strong sales of subsea production systems offshore North America and Trinidad, higher sales of valves in US land, and robust sales of midstream production systems in Europe were offset by lower revenue in the Middle East & Asia and Russia following the strong year-end sales of the previous quarter.

Production Systems pretax operating margin of 9% expanded 217 bps year on year mainly driven by higher artificial lift, surface, and subsea sales and execution efficiency as supply chain and logistics constraints continued to ease.

Sequentially, pretax operating margin contracted 148 bps as improved profitability from increasing activity, coupled with execution efficiency in North America, was more than offset by reduced margins in Europe & Africa and Asia due to seasonality and activity mix.

Quarterly Highlights

CORE

Contract Awards

SLB continues to win new long-cycle contracts for the Core Divisions, particularly in the Middle East and offshore basins. Notable highlights include the following:

• Aramco and SLB signed a nine-year master services agreement in January 2023 for wireline and mud logging services, committing to a long-term partnership in energy innovation with a strong interest in technology development. Multiple unique SLB technologies will be deployed during the execution of the contract, including the Ora™ intelligent wireline formation testing platform, the ThruBit™ through-the-bit logging services, and the ReSOLVE™ instrumented wireline intervention service.

• Petrobras and OneSubsea^® entered into an agreement for Búzios 10 engineering, procurement, construction, and installation subsea production system scope. OneSubsea will provide subsea production systems equipment and associated services for four development phases of the deepwater Búzios Field offshore Brazil. The project scope includes 16 fit-for-purpose vertical subsea trees, control systems, and five subsea distribution units, as well as installation, commissioning, and services for the life of the field. The project will be supported by the OneSubsea Brazil Center of Excellence on Subsea Production Systems, which will drive in-country value across both equipment and service scopes. Located in the pre-salt area of the Santos Basin, Búzios is one of the world’s largest deepwater oil fields.

• In a global tender exercise, Shell awarded all three deepwater outcome-based well services scopes of work for bundled well construction and reservoir evaluation services in Brazil, Egypt, and the Crux project in Australia to SLB. The individual scopes of work are planned to commence sequentially between May 2023 and the end of the year.

• In Brazil, PRIO, one of the country’s largest independent oil producers, has awarded OneSubsea the engineering, procurement, and construction contract for a multiphase boosting system to support and accelerate production from the Wahoo-Frade floating production, storage, and offloading tieback, which will be the longest tieback in Brazil. The OneSubsea multiphase pump system was selected based on its proven performance delivering standardized subsea components with a TRL-7 technical readiness level that offer high system reliability and operational flexibility to support reservoir performance for the life of the field. OneSubsea’s selection was also due to its ability to expedite delivery to meet project deadlines.

• Also in Brazil, Enauta has exercised a contract option with OneSubsea for a third multiphase boosting system to be integrated in its Atlanta full-field development. The expansion of the project leveraged the standardization of manufacturing and the project delivery process for both parties, resulting in an earlier delivery, improved logistics, and further consolidation of field activities to lower the overall field lifecycle cost.

Oil & Gas Decarbonization, New Technology, and Performance

SLB remains focused on developing and implementing technology solutions to deliver higher value with lower carbon emissions. Customers continue to make SLB the partner of choice for maximizing performance across reservoir evaluation, well construction, production, and integrated operations, all while operating more sustainably. Notable highlights include the following:

• In the US, intelligent power management, one of the SLB Transition Technologies™ to decarbonize engine-generator (genset) operations, was deployed on a Unit Drilling Company super-spec BOSS rig with three gensets. During 56 consecutive days of rig operation, this automated software leveraged a rapid-response battery energy storage system to reduce total genset runtime by 1,186 hours, conserving 14,332 gallons of diesel fuel consumption while eliminating an associated 147 metric tons of CO₂e emissions. The rig provided sufficient power from one genset during tophole drilling, tubular tripping, and various surface activities. This direct digital system runs the active genset at its optimal rating to increase energy efficiency, and the battery safely absorbs harsh transient power spikes, thereby extending genset reliability, all without the need for rig crew intervention.

• During the quarter, SLB introduced the EcoShield™ geopolymer cement-free system that minimizes the CO₂ footprint of a well’s construction. This innovative technology eliminates up to 85% of embodied CO₂ emissions compared with conventional well cementing systems. The EcoShield system has the potential to avoid up to 5 million metric tons of CO₂ emissions annually, the equivalent of removing 1.1 million cars from the road each year. The EcoShield system uses locally sourced natural materials and industrial waste streams in its composition, making it a far more sustainable well integrity method. The cement-free system can be deployed throughout various phases of the well life cycle, including abandonment, and across a range of field applications, including in corrosive environments.

• Aker BP in Norway collaborated with SLB to deploy the Epilogue™ dual-string barrier evaluation on multiple wells to avoid excessive cement remediation. The results from the Epilogue dual-string barrier evaluation and a pressure test validated the presence of a barrier that complied with NORSOK regulations. The Epilogue dual-string barrier evaluation eliminated the need for removing the production tubing before the bond evaluation, thereby saving rig time and providing operational flexibility.

• In Libya, SLB technology and processes enhanced production from the first six wells of a 25-well project for Sarir Oil Operations (SOO). The production enhancement workflow included project assessment, intelligent candidate selection, data processing, hypothesis validation, technology selection, and production enhancement execution. An integrated suite of production logging and pulsed-neutron technologies was deployed to identify sources of water. High-resistance through-tubing bridge plugs and specialized ultra-shear cement were used to shut off the water source in the high-pressure wells. The intervention campaign on these wells resulted in a 400% increase in oil production and reduction in water cut by 60%. The campaign allowed SOO to achieve its production increase objectives and to de-bottleneck produced water, thereby increasing overall field production.

• Tailwind Energy Chinook Ltd deployed the world’s first dual MaxFORTE™ electric submersible pumps (ESPs) on their Orlando Field, North Sea, development well 3/03b-13Y. High-reliability and dual ESP completions are key enablers of production assurance offshore, where workover costs are high and scheduling ESP replacements is limited by rig availability and weather windows in the North Sea. Following commissioning, the MaxFORTE high-reliability ESP system operated at oil production rates greater than 4,000 barrels per day and continues its strong performance. This successful first application creates more opportunities for dual MaxFORTE ESP system installations offshore and subsea worldwide as countries aim to align energy delivery with domestic needs.

DIGITAL

SLB is deploying digital technology at scale, helping customers to measure and understand their data and leverage insights to drive innovation and elevate performance. Notable highlights include the following:

• SLB was awarded a contract to develop and implement a control system and dynamic process simulation solution for Petrobras. This strategic multipurpose dynamic simulation (MPDS) solution is being developed in partnership with Inprocess Technology and Consulting Group, a worldwide leader in MPDS, and Sensia, the leading control system and automation specialist in oil and gas. The MPDS solution will leverage SLB’s leadership in original equipment manufacturing and offshore construction and operations. Moreover, it will exhibit SLB’s expertise and ability to provide an immersive digital twin environment to dynamically simulate operational processes and their control and automation systems, train personnel, and strengthen safety elements at five new floating production, storage, and offloading units to be installed in Búzios Field in the Santos Basin.

• In Kuwait, Saudi Arabia Chevron (SAC) awarded SLB a two-year software-as-a-service (SaaS) contract for deployment of the Delfi™ digital platform. Delfi digitalizes petrotechnical operations with AI and machine-learning applications running in the high-performance computing environment of the cloud. It will enable SAC to streamline its workflows for exploration, production, engineering, and agile reservoir modeling to lower costs and unlock new levels of efficiency. The contract builds on an existing agreement between SLB and Chevron.

• CPC Corporation, Taiwan (CPC) has signed a global strategic cooperation framework agreement with SLB to collaborate on digital transformation, including the deployment of a cloud-based cognitive E&P platform; carbon capture, utilization, and sequestration (CCUS); and the assessment of geothermal prospects. These technologies align with Taiwan’s drive towards a 2050 net-zero economy and CPC's actions in pivoting to a low carbon future. Leveraging the long-term cooperation between the two companies in oil and gas E&P in Taiwan and elsewhere, the expansion of the strategic cooperation will support CPC in accelerating its energy transition pathway.

• In Pakistan, Mari Petroleum Company Limited signed a contract with SLB for integrated digital drilling services to increase their efficiency in the planning and execution of an upcoming strategic well. The contract will introduce the DrillPlan™ coherent well construction planning solution and the DrillOps™ on-target well delivery solution. The SLB solutions will include integrated well planning, performance monitoring, and predictive analytics in the Delfi digital platform. These SLB digital drilling solutions will enable agile decisions by both headquarters and wellsite operation teams.

• SLB and the national agency for the valorization of hydrocarbon resources in Algeria (ALNAFT) launched the EXplore ALgeria Today (EXALT) upstream gateway, a fully integrated digital platform developed by SLB that enables seamless global access to a required portfolio of Algerian subsurface data and evergreening products. The multiyear agreement will be enabled by SLB digital subsurface platform and domain expertise. A joint team of ALNAFT and SLB experts will upgrade subsurface understanding with new data to evaluate onshore and offshore hydrocarbon potential for new and existing operators.

• SLB has entered into a strategic partnership with Cognite to integrate the SLB Enterprise Data Solution for subsurface data with Cognite Data Fusion^®, Cognite’s leading open industrial DataOps platform—creating the first offering in the market with access to contextualized operational data in an interoperable platform. Through this partnership, customers can integrate data from reservoirs, wells, and facilities in a single, open platform and leverage embedded AI and advanced analytics tools to optimize production and reduce costs, while decreasing their operational footprint to help achieve sustainability goals.

NEW ENERGY

Customers are increasingly focused on reducing their carbon equivalent emissions throughout the value chain. SLB is applying its scale and expertise to new energy systems, accelerating the path to net zero and beyond. Notable highlights include the following:

• As part of Chevron Australia’s commitment to exploring carbon capture and storage (CCS) potential in the Carnarvon Basin, offshore Western Australia, SLB will perform a three-dimensional seismic and storage assessment to identify new CCS opportunities in the Barrow and Dampier sub-basins. A global team of multidisciplinary experts will integrate decades of subsurface knowledge to screen and evaluate potential CCS sites at the regional scale.

• Also in Australia, SLB has supported Mitsui in its CO₂ sequestration assessment, which contemplates the injection of up to 50 metric tons of industry grade CO₂ into a depleted gas reservoir. SLB has successfully completed phase 1 of the project, which involves flow assurance and engineering. Although detailed engineering for phases 2 and 3 is ongoing, the partners intend to proceed with the activity upon receipt of all necessary regulatory approvals. This will be the first CCS project on land in the Perth Basin, and SLB will support Mitsui in executing the full CCS workflow, including flow assurance, CO₂ supply, injection system design, wellsite services, and third-party project management.

• Eni awarded SLB a contract to supply CO₂ injection trees and wellheads for the HyNet Northwest CCS project. The contract includes 14 Cameron tubing spools and trees, three new Cameron wellheads, installation and plug-and-abandon services, and rental tooling. The HyNet project is a significant part of the UK government’s strategy to achieve net zero by 2050. CO₂ emissions from the project will be stored for the long term in a depleted field in the East Irish Sea through the repurposing of existing offshore infrastructure.

• In Malaysia, SLB was awarded a contract by Malaysia Marine and Heavy Engineering Sdn Bhd, for work on the project of PETRONAS, namely its Kasawari CCS project in Block SK316, offshore Sarawak. The scope of work is the design and supply of equipment to treat up to 256.3 MMscfd of inlet gas with 57.9 to 71.7 mol% CO₂. The project is expected to reduce CO₂ emitted by flaring by 3.3 metric tons of CO₂e annually, making it one of the largest offshore CCS projects in the world.

• In Canada, SLB is providing seismic processing and reservoir modeling software to support a shallow carbon storage project for Carbon Management Canada’s Newell County Facility. Research at the 200-hectare site demonstrates best practices for CO₂ storage monitoring protocols and helps governments, industries, and the public understand that CO₂ can be stored securely underground. Access to seven years’ worth of operations research and data from the project will enable SLB to validate its CO₂ monitoring, modeling, and imaging technologies, expanding its capabilities to deliver CCS solutions at scale.

• In upstate New York, United States, Cornell University awarded SLB a contract for integrated services to construct and characterize a stratigraphic well on the university campus. The goal of the project is to evaluate the feasibility of sustainably heating the campus with Earth Source Heat. The well was successfully completed with several new technologies suited for the stringent environmental and technical requirements of the project, including, among others, the DrillPlan well construction planning solution, DrillOps well delivery solution, HydraGlyde™ high-performance water-based drilling fluid, and MDT™ modular formation dynamics tester deployed with a new 10K dual-packer system for state-of-the art sampling and characterization. The well was drilled to the target zone with no fluid performance issues and was successfully tested and characterized as per project specifications. This geothermal project is key to Cornell University’s carbon neutrality goal by 2035.

FINANCIAL TABLES

Charges & Credits

In addition to financial results determined in accordance with US generally accepted accounting principles (GAAP), this first-quarter 2023 earnings release also includes non-GAAP financial measures (as defined under the SEC’s Regulation G). In addition to the non-GAAP financial measures discussed under “Liquidity”, net income, excluding charges & credits, as well as measures derived from it (including diluted EPS, excluding charges & credits; SLB net income, excluding charges & credits; effective tax rate, excluding charges & credits; and adjusted EBITDA) are non-GAAP financial measures. Management believes that the exclusion of charges & credits from these financial measures enables it to evaluate more effectively SLB’s operations period over period and to identify operating trends that could otherwise be masked by the excluded items. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of certain of these non-GAAP measures to the comparable GAAP measures. For a reconciliation of adjusted EBITDA to the comparable GAAP measure, please refer to the section titled “Supplementary Information” (Question 9).

Supplementary Information
Frequently Asked Questions

About SLB

SLB (NYSE: SLB) is a global technology company driving energy innovation for a balanced planet. With a global presence in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.

Conference Call Information

SLB will hold a conference call to discuss the earnings press release and business outlook on Friday, April 21, 2023. The call is scheduled to begin at 9:30 a.m. US Eastern Time. To access the call, which is open to the public, please contact the conference call operator at +1 (844) 721-7241 within North America, or +1 (409) 207-6955 outside North America, approximately 10 minutes prior to the call’s scheduled start time, and provide the access code 8858313. At the conclusion of the conference call, an audio replay will be available until May 21, 2023, by dialing +1 (866) 207-1041 within North America, or +1 (402) 970-0847 outside North America, and providing the access code 1502942. The conference call will be webcast simultaneously at www.slb.com/irwebcast on a listen-only basis. A replay of the webcast will also be available at the same website until May 21, 2023.

This first-quarter 2023 earnings press release, as well as 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 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 our financial and performance targets and other forecasts or expectations regarding, or dependent on, our 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; our business strategies, including digital and “fit for basin,” as well as the strategies of our customers; our APS projects, joint ventures, and other alliances; our response to the COVID-19 pandemic and our 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 our customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers and suppliers; the inability to achieve its financial and performance targets and other forecasts and expectations; the inability to achieve our 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 our supply chain; production declines; the extent of future charges; the inability to recognize efficiencies and other intended benefits from our business strategies and initiatives, such as digital or SLB New Energy; as well as our 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 press release and our most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission. 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 press release 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 press release are made as of the date of this release, 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.

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