Slb Limited · NYSE:SLB
Slb — Schlumberger — Barclays CEO Energy-Power Conference 2015
26 slides from Slb's conference presentation, Sep 9, 2015
Slide 1: Paal Kibsgaard, Barclays CEO Energy-Power Conference
Paal Kibsgaard Chairman and Chief Executive Officer Barclays CEO Energy-Power Conference New York, September 9, 2015 1
Slide 2: Safe Harbor: Forward-Looking Statements
Safe Harbor Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections regarding whether the p
Slide 3: Safe Harbor: Additional Information
Safe Harbor Additional Information This presentation does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS, THE REGISTRATION STATEMENT AND OTHE
Slide 4: Managing the Downturn
Managing the Downturn Revenue Decline Decremental Margins (Year-On-Year) (Year-on-Year) Unprecedented drop in E&P activity combined with mounting pricing pressure Focusing on what we can control to preserve financial performance Reacting quickly and decisively to minimize disruption 4
Slide 5: Global Financial Performance H1 2011 – H1 2015
Global Financial Performance H1 2011 – H1 2015 Revenue Pretax Op. Income Margin US$ Millions (%) Source: Public filings 5
Slide 6: Global Financial Performance H1 2011 – H1 2015
Global Financial Performance H1 2011 – H1 2015 Earnings per Share Free Cash Flow US$ US$ Billions Source: Public filings Note: EPS from continuing operations excluding charges and credits. 6 Free Cash Flow = cash flow from operations less capital expenditures (including multiclient and SPM investmen
Slide 7: Leveraging Transformation
Leveraging Transformation Technology Integration Efficiency Reliability 7
Slide 8: Characterization – Reservoir Expertise
Characterization – Reservoir Expertise Over 85 years of science and innovation to expand our understanding of the sub-surface The largest community of petro-technical experts covering every major field globally Leadership in measurements, numerical modelling, software and control systems Chara
Slide 9: Drilling – Integrated Technologies
Drilling – Integrated Technologies Two decades of innovation and game changing technology Focused R&E investment and targeted M&A to build the complete drilling offering Used software and instrumentation to fully integrate the downhole drilling system Drilling Transformed drilling from an ar
Slide 10: Production – Integrated Processes
Production – Integrated Processes Expanding production portfolio, building on core scientific platforms and M&A Integrating technology and expertize across multiple technical domains Leveraging Characterization capabilities in measurements, systems and modelling Production Realizing life-of-
Slide 11: Technology Offering Evolution – Common Threads
Technology Offering Evolution – Common Threads Leveraging core expertise and capabilities from Reservoir Characterization Moving from hardware components to instrumented, software optimized systems Complementing internal organic growth with targeted M&A Drilling Production Well Characterizatio
Slide 12: Expanding from Subsurface to Surface
Expanding from Subsurface to Surface Integrated Drilling Systems Integrated Production Systems Drilling Production Wellhead+ Drilling Production Well Characterization Reservoir 12
Slide 13: Cameron – A Balanced Portfolio
Cameron – A Balanced Portfolio Segments Land/Offshore Geography Market Surface Subsea Other 23% 29% Land 12% NAM V&M 49% Drilling 36% International 20% 51% 64% Upstream Drilling 88% 28% Leading technologies and products across all product lines Production related product lines represent 70% of t
Slide 14: New Schlumberger Group Structure
New Schlumberger Group Structure Schlumberger Cameron Characterization Drilling Production Revenue $10.3 billion $12.2 billion $18.5 billion $18.1 billion Business Rank OneSubsea 2 Wireline 1 Drilling & Measurements 1 Well Services 2 Drilling Systems 2 Testing Services 1 Geoservices 1 Completions 3
Slide 15: Compelling Strategic Rationale
Compelling Strategic Rationale Growth through integration of reservoir, well and surface technology with instrumentation and control to launch a new era of drilling and production systems Cost efficiencies through synergy, delivering improvements in operating costs, supply chain and manufacturin
Slide 16: Cost Synergies
Cost Synergies Manufacturing Operating Costs Transformation & Supply Chain Segment & Geographical G&A Operational Corporate Costs G&A Back-office Support 16
Slide 17: Revenue Synergies
Revenue Synergies Value Customers Shareholders Increase recovery rates Expand our customer base Reduce costs per barrel Leverage our global footprint Closer commercial alignment Broaden our technology portfolio Automation Performance Integration Software System Integration Serv
Slide 18: OneSubsea – Accelerating the Implementation
OneSubsea – Accelerating the Implementation Expand customer base and geographical coverage Introduce performance based boosting contracts Accelerate joint R&E with Completion and Artificial Lift product lines Leverage reservoir knowledge in early design phase discussions Increase focus on
Slide 19: BOP Non-Productive Time – Addressing the Industry Issue
BOP Non-Productive Time – Addressing the Industry Issue Largest installed base of BOPs Introduce service based business models Launch R&E program for future BOPs Floaters Jackups Onshore 284 Rigs 492 Rigs 1,789 Rigs Source: IHS-Petrodata, Internal data. *Active fleet only (newbuilds not includ
Slide 20: Rig of the Future – The New Land Drilling System
Rig of the Future – The New Land Drilling System Design Proprietary features based on years of R&E Augmented by the recent T&T acquisition Manufacturing JV with Bauer closing in Q4 2015 First rig to be delivered in Q1 2016 Rig Equipment Surface components provided by Cameron Closely inte
Slide 21: CAMSHALE
CAMSHALE Drilling Pressure Wellheads Control Production Flowback Systems and Testing World’s largest rental fleet of pressure control equipment Integrate with frac fleet to optimize and automate surface set-up and operations 21
Slide 22: Setback in 2015 GDP Growth, Yet Oil Demand Accelerates
Setback in 2015 GDP Growth, Yet Oil Demand Accelerates Global Real GDP Change Global Oil Demand Source: IHS, IEA, SLB Analysis 22
Slide 23: Sources of Supply Growth are Diminishing
Sources of Supply Growth are Diminishing North America Non-OPEC OPEC Non-North America Source: IEA, EIA, SLB analysis * Includes impact of upward revision for Iran in Feb-15 23
Slide 24: The Production Replacement Challenge
The Production Replacement Challenge Demand Growth Annual Replacement Challenge 8-10 MM bpd MMbpd Time Annual replacement challenge driven more by production decline than by demand growth E&P investment cuts impacting total production replacement capacity 24
Slide 25: Oilfield Services – 2016 Outlook
Oilfield Services – 2016 Outlook Customers likely to maintain conservative view on 2016 budgets Underlying H1-16 activity in line with H2-15 levels, excluding seasonal effects Potential activity upside on land in second half of 2016, dependent on oil price Offshore still focused on shallow w
Slide 26: Conclusions
Conclusions Schlumberger continues its multi-year run of financial outperformance, by proactively navigating the severe oil industry downturn. The proposed Cameron acquisition is a compelling extension to our business portfolio, building on our proven formula for evolving our technical offering.
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