<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------------
FORM 10-Q
---------
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
--------------------------------------------
FOR THE QUARTER ENDED: COMMISSION FILE NO.:
JUNE 30, 1997 1-4601
- ---------------------- --------------------
SCHLUMBERGER N.V.
(SCHLUMBERGER LIMITED)
--------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NETHERLANDS ANTILLES 52-0684746
-------------------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
277 PARK AVENUE
NEW YORK, NEW YORK, U.S.A. 10172
42 RUE SAINT-DOMINIQUE
PARIS, FRANCE 75007
PARKSTRAAT 83
THE HAGUE,
THE NETHERLANDS 2514 JG
------------------------------ -----------
(Addresses of principal executive (Zip Codes)
offices)
REGISTRANT'S TELEPHONE NUMBER: (212) 350-9400
Indicate by check mark whether Registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days.
YES X NO
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at July 31, 1997
----- ----------------------------
COMMON STOCK, $0.01 PAR VALUE 495,043,747
<PAGE>
PART I. FINANCIAL INFORMATION
-----------------------------
ITEM 1 : FINANCIAL STATEMENTS
- -----------------------------
SCHLUMBERGER LIMITED
--------------------
(Schlumberger N.V., Incorporated in the Netherlands Antilles)
and Subsidiary Companies
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
(Unaudited)
<TABLE>
<CAPTION>
(Stated in thousands except per share amounts)
Periods Ended June 30,
----------------------------------------------
Second Quarter Six Months
---------------------- ----------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUE:
Operating $2,601,679 $2,150,790 $5,003,739 $4,178,618
Interest and other income 20,738 16,067 38,843 33,437
---------- ---------- ---------- ----------
2,622,417 2,166,857 5,042,582 4,212,055
---------- ---------- ---------- ----------
EXPENSES:
Cost of goods sold and services 1,929,324 1,631,997 3,712,112 3,181,600
Research & engineering 118,897 114,740 236,850 225,539
Marketing 76,745 75,334 151,378 148,524
General 93,568 88,683 181,349 173,942
Interest 19,317 18,120 37,136 35,463
Taxes on income 78,060 41,265 157,308 79,402
---------- ---------- ---------- ----------
2,315,911 1,970,139 4,476,133 3,844,470
---------- ---------- ---------- ----------
Net Income $ 306,506 $ 196,718 $ 566,449 $ 367,585
========== ========== ========== ==========
Net Income Per Share (1) $ 0.62 $ 0.40 $ 1.15 $ 0.75
========== ========== ========== ==========
Avg. shares outstanding (1) 493,863 489,341 493,644 488,028
========== ========== ========== ==========
Dividends declared per share (1) $ 0.1875 $ 0.1875 $ 0.375 $ 0.375
========== ========== ========== ==========
</TABLE>
(1) Adjusted for two-for-one stock split on June 2, 1997.
See notes to consolidated financial statements
-2-
<PAGE>
SCHLUMBERGER LIMITED
--------------------
(Schlumberger N.V., Incorporated in the Netherlands Antilles)
and Subsidiary Companies
CONSOLIDATED BALANCE SHEET
--------------------------
(Unaudited)
<TABLE>
<CAPTION>
Jun. 30, Dec. 31,
1997 1996
----------- -----------
ASSETS (Dollars in thousands)
- ------
<S> <C> <C>
CURRENT ASSETS:
Cash and short-term investments $ 1,442,165 $ 1,358,948
Receivables less allowance for doubtful accounts
(1997 - $57,608; 1996 - $58,981) 2,568,068 2,260,091
Inventories 1,053,522 938,974
Deferred taxes on income 214,906 222,456
Other current assets 213,809 262,148
----------- -----------
5,492,470 5,042,617
LONG-TERM INVESTMENTS, HELD TO MATURITY 370,222 323,717
FIXED ASSETS:
Property, plant and equipment 9,798,712 9,577,749
Less accumulated depreciation (6,357,615) (6,219,168)
----------- -----------
3,441,097 3,358,581
EXCESS OF INVESTMENT OVER NET ASSETS OF
COMPANIES PURCHASED less amortization 1,175,128 1,225,335
DEFERRED TAXES ON INCOME 179,798 203,983
OTHER ASSETS 142,030 170,818
----------- -----------
$10,800,745 $10,325,051
=========== ===========
LIABILITIES & STOCKHOLDERS' EQUITY
- ----------------------------------
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 2,131,038 $ 2,200,161
Estimated liability for taxes on income 390,281 367,562
Bank loans 765,331 743,018
Dividend payable 93,029 92,842
Long-term debt due within one year 90,484 70,827
----------- -----------
3,470,163 3,474,410
LONG-TERM DEBT 726,068 637,203
POSTRETIREMENT BENEFITS 393,892 383,129
OTHER LIABILITIES 193,406 203,929
----------- -----------
4,783,529 4,698,671
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock 829,743 818,803
Income retained for use in the business 7,519,045 7,137,744
Treasury stock at cost (2,295,524) (2,315,946)
Translation adjustment (36,048) (14,221)
----------- -----------
6,017,216 5,626,380
----------- -----------
$10,800,745 $10,325,051
=========== ===========
</TABLE>
See notes to consolidated financial statements
-3-
<PAGE>
SCHLUMBERGER LIMITED
--------------------
(Schlumberger N.V., Incorporated in the Netherlands Antilles)
and Subsidiary Companies
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
(Dollars in thousands)
Six Months Ended
June 30,
1997 1996
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 566,449 $ 367,585
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization 469,847 436,682
Earnings of companies carried at equity,
less dividends received (Dividends:
1997 - $0 ; 1996 - $133) 8 2,743
Provision for losses on accounts receivable 6,041 7,922
Other adjustments (1,273) (1,298)
Change in operating assets and liabilities:
Increase in receivables (356,746) (185,987)
Increase in inventories (140,024) (145,519)
Decrease in deferred taxes on income 7,550 -
Decrease in accounts payable
and accrued liabilities (37,427) 13,411
Increase (decrease) in estimated
liability for taxes on income 24,904 (25,208)
Other - net 81,883 (47,353)
--------- ---------
Net cash provided by operating activities 621,212 422,978
--------- ---------
Cash flows from investing activities:
Purchases of fixed assets (590,958) (499,484)
Sales/retirements of fixed assets 34,113 39,629
(Increase) decrease in investments (131,736) 45,903
Payment for purchase of businesses - (6,050)
Decrease (increase) in other assets 5,776 (207)
--------- ---------
Net cash used in investing activities (682,805) (420,209)
--------- ---------
Cash flows from financing activities:
Dividends paid (184,968) (182,519)
Proceeds from exercise of stock options 31,362 92,122
Proceeds from employee stock purchase plan 32,667 25,193
Proceeds from issuance of long-term debt 154,920 40,978
Payments of principal on long-term debt (28,880) (52,152)
Net increase in short-term debt 56,743 85,738
--------- ---------
Net cash provided by financing activities 61,844 9,360
--------- ---------
Net increase in cash 251 12,129
Cash, beginning of period 137,259 72,515
--------- ---------
Cash, end of period $ 137,510 $ 84,644
========= =========
</TABLE>
See notes to consolidated financial statements
-4-
<PAGE>
SCHLUMBERGER LIMITED
--------------------
(Schlumberger N.V., Incorporated in the Netherlands Antilles)
and Subsidiary Companies
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(Unaudited)
In the opinion of management, all adjustments necessary to present fairly the
financial position and the results of operations have been made in the
accompanying interim financial statements. The Company's significant accounting
policies are summarized in its 1996 Annual Report. These policies have been
consistently applied during the interim period presented in this report. The
results of operations for the three and six month periods ended June 30, 1997
are not necessarily indicative of the results of operations that may be expected
for the entire year.
EARNINGS PER SHARE
- ------------------
In February, 1997, the Financial Accounting Standards Board issued "Statement of
Financial Accounting Standards No. 128". The impact on the Company of the new
standard, which is effective for the fourth quarter of 1997, is that the Company
will, at that time, report "Earnings per common share - assuming dilution"
(stock option and warrant effect) along with the "Earnings per share" now
reported. Earnings per share - assuming dilution will not be significantly
different from earnings per share as currently reported.
INCOME TAX EXPENSE
- ------------------
The Company and its subsidiaries operate in over 100 taxing jurisdictions.
The Company's US consolidated group has a net operating loss carryforward at
June 30, 1997 of $40 million and net deductible temporary differences of $850
million. Significant temporary differences pertain to postretirement medical
benefits and fixed assets. Most of the tax loss carryforward will expire in
2003.
In the third quarter of 1996, the Company recognized 50% of the US income tax
benefit related to its US subsidiary's tax loss carryforward and all temporary
differences. At June 30, 1997, the US deferred tax asset was $365 million and
the remaining valuation allowance reserve was released as it is now more likely
than not that the tax loss carryforward will be realized on a tax return basis.
The resulting reduction in income tax expense was not significant.
CONTINGENCIES
- -------------
The Company and its subsidiaries comply with government laws and regulations and
responsible management practices for the protection of the environment. The
Consolidated Balance Sheet includes accruals for the estimated future costs
associated with certain environmental remediation activities related to the past
use or disposal of hazardous materials. Substantially all such costs relate to
divested operations and to facilities or locations that are no longer in
operation. Due to a number of uncertainties, including uncertainty of timing,
-5-
<PAGE>
the scope of remediation, future technology, regulatory changes and other
factors, it is possible that the ultimate remediation costs may exceed the
amounts accrued. However, in the opinion of management, such additional costs
are not expected to be material relative to consolidated liquidity, financial
position or future results of operations.
In a case in Texas involving the validity of a 1988 settlement and release in
connection with an incidental business venture, the trial court, in 1993,
rendered a judgment notwithstanding the verdict of the jury, exonerating
Schlumberger from any liability. In late 1994, a Texas Court of Appeals reversed
the trial court judgment and reinstated the jury award of about $75 million
against Schlumberger. The Texas Supreme Court granted the Schlumberger motion
to hear the case. Oral argument was held before the Texas Supreme Court in
October, 1995. Schlumberger and outside counsel believe the decision of the
trial court was correct. Consequently, no provision has been made in the
Consolidated Financial Statements for this matter.
In May 1996, in a case involving a $3 million contract dispute, the trial court
in Johnson County, Texas, entered judgment on jury findings adverse to
Schlumberger for $23 million in damages, which has been doubled, plus attorneys'
fees and interest. The Company and its outside counsel believe the findings and
the judgment are not supported by the evidence and law, and have filed an
appeal. Accordingly, no provision has been made in the accompanying financial
statements for this matter.
In addition, the Company and its subsidiaries are party to various other legal
proceedings. Although the ultimate disposition of these proceedings is not
presently determinable, in the opinion of the Company any liability that might
ensue would not be material in relation to the Consolidated Financial
Statements.
-6-
<PAGE>
Item 2: Management's Discussion and Analysis of Financial Condition and Results
- --------------------------------------------------------------------------------
of Operations.
- --------------
Second Quarter 1997 Compared to Second Quarter 1996
---------------------------------------------------
Net income was $307 million and earnings per share were $0.62, reflecting gains
of 56% and 55%, respectively, compared to the second quarter of 1996.
Second quarter operating revenue was $2.6 billion, 21% higher than the same
period last year.
Oilfield Services revenue grew 30%, while rig count worldwide grew 17%. All
businesses contributed significantly to the 69% increase in operating income.
Measurement & Systems revenue increased 4%, while operating income grew 26%
compared to the same period last year. The increase in operating results was due
to Automatic Test Equipment.
Business Review
(Stated in millions)
Oilfield Services Measurement & Systems
---------------------- ---------------------
Second Quarter 1997 1996 % change 1997 1996 % change
---- ---- -------- ---- ---- --------
Operating Revenue $ 1,871 $ 1,444 30% $ 733 $ 708 4%
Operating Income(1) $ 364 $ 215 69% $ 40 $ 32 26%
(1) Operating income represents income before income taxes, excluding
interest expense and interest and other income.
Oilfield Services
Operating revenue for Oilfield Services was $427 million (30%) above last year.
All regions and businesses posted substantial increases led by Wireline &
Testing, Dowell and Sedco Forex.
New Wireline & Testing high-technology services, including CMR* Combinable
Magnetic Resonance, MDT* Modular Formation Dynamics tester and PLATFORM EXPRESS*
services, gained wider acceptance for their recognized value to clients, and
significantly boosted revenue worldwide.
Oilfield Services operating income increased overall by 69%.
North America
- -------------
Revenue increased 32%, representing 19% of consolidated revenue. Rig count
increased 31%. This region was the largest driver of revenue growth. All
businesses, particularly activities such as wireline logging and pressure
pumping services, reported healthy advances, fueled by high activity in the Gulf
of Mexico, a significant rise in land activity and favorable weather in Canada
during the spring breakup.
The Gulf of Mexico saw expanded use of DeepSEA EXPRESS* service and foam
-7-
<PAGE>
cementing systems. Outstanding seismic vessel performance was exemplified by the
exceptional achievement of Geco Searcher, which by itself averaged 425 square
miles of 3D survey coverage per month.
Logging-while-drilling (LWD) and directional drilling activity grew, owing to an
expanded client base in North America, and especially in Canada, where drilling
continued throughout the traditional spring slowdown. Despite the substantial
rise in rig count, land and offshore activities each experienced a higher growth
rate. Significant market share gains in oil exploration and production software
products, surging LogSAFE* data archiving activity and a ten-fold revenue
increase in IT and Data Management services helped boost revenue 65%, the
highest growth rate of all North American activities.
Outside North America
- ---------------------
The rig count increased by 2% outside North America with revenue up 28%,
representing 53% of consolidated revenue. Our businesses across all
geographic regions were well positioned to take advantage of strong
upswings in activity, led by Latin America, Africa and the Far East.
* Latin America had very high activity, notably for integrated services and
technologies in Mexico and Venezuela. In Mexico, the largest Latin American
integrated services contract--for a full suite of services, from surface
seismic to production--was awarded to Schlumberger for the Burgos field.
The new Dowell CemCRETE* concrete-based cementing technology was used in
projects in Mexico, on Lake Maracaibo in Venezuela and in Argentina. This
system is used to cement wells in one-stage, rather than two, while
maintaining a uniform strength throughout the wellbore, which helps improve
performance and reliability and reduce rig time, resulting in savings for the
client. In South America, a well was drilled using PowerPak* steerable motors
in combination with Slim1* measurements-while-drilling (MWD) technology in an
innovative way which permitted it to work with normally incompatible aerated
mud systems. This resulted in a customer completing a complex well with a
three-fold increase in production.
* In Northern Europe and the CIS, LWD and directional drilling services were
particularly strong. Recently a North Sea client, from his office onshore, was
able to double the production of a well by remotely geosteering the
drillstring using new VISION475* technology. This specialized service for slim
holes facilitates the transmission of well information by combining real-time
surveying with new-generation formation evaluation measurements. GeoSteering*
motors allow the client to precisely guide the bit through the reservoir and
result in financial and time savings, and ultimately, in improved well
production.
Marine seismic services were strong due to increased productivity and optimal
positioning of the fleet. Heavy demand for reservoir-specific 3D seismic
surveys in Northern Europe resulted in seven high-resolution projects, which
help evaluate subterranean rock formations with a higher degree of accuracy.
In the North Sea, the new Nessie* 4C multiwave array seismic data acquisition
system was introduced on the world's first commercial multicomponent seabed
acquisition project. The system significantly enhances our ability to
characterize reservoirs through improved mapping capabilities.
-8-
<PAGE>
* In Africa, business was strong, based largely on sales of early production
facilities (EPF). Well construction services continued to demonstrate value to
clients with their significant cost reductions and time savings. The continued
trend toward large integrated services projects with a broad scope of work and
outsourced development in remote areas was illustrated by a new contract in
Gabon.
Our worldwide drilling revenue, primarily from outside North America, rose 50%,
chiefly due to higher market dayrates for semisubmersibles and jackups in the
North Sea, Africa, Asia and the Middle East. The increase in dayrates over the
second quarter of 1996 was driven by favorable new contract terms. Utilization
rates also improved. The Sedco Forex offshore rig utilization rate remained at
94%, and the land rig utilization rate grew to 87%, versus 50%. The total fleet
count was 81 at quarter-end, with 52 offshore rigs and 29 land rigs,
representing the addition of one lake barge and one semisubmersible over last
quarter.
Measurement & Systems
Revenue grew 4% from last year, despite the impact of unfavorable exchange rate
effects. Increased card demand, acquisitions made by Electronic Transactions in
1996 and strong growth at ATE more than offset the decline in Metering
activities. Orders increased 17%.
Measurement & Systems operating income rose 26% compared to the prior year, due
to a 78% increase in operating income at ATE. Improvements in the US metering
market were more than offset by shortfalls in Europe.
During the quarter, ATE revenue rose 22%, reflecting greater sales volume at
Test Systems and higher deliveries of assembly systems at Automated Systems.
Orders increased by 120%, compared with the same period last year. Electronic
Transactions revenue improved 28%. Cards' growth was particularly strong, with
increased demand for subscriber identity module (SIM) cards for China,
Singapore, Italy and the US. Including the performance of previously acquired
companies, orders grew 30%. Metering revenue was down 8%, as conditions in
Europe offset gains made by North and South America. Metering orders were down
7% versus last year. Systems & Services revenue was flat. Service business in
Europe, especially Italy, continued to benefit from contractual maintenance
activities. Compared with the prior year, orders decreased 1%.
Interest and other income increased $5 million from the second quarter of 1996
primarily due to higher average investment balances. Gross margin increased
from 24% to 26%. Research and engineering expense increased 4% from last year
but decreased to 4.6% of operating revenue from 5.3% in 1996. Marketing expense
was up 2%. General expense, expressed as a percentage of operating revenue,
decreased from 4.1% to 3.6%. Interest expense increased $1 million from the
second quarter last year due to higher average debt. The effective tax rate
increased 3 percentage points, to 20%, which reflects the higher US income tax
expense following the recognition of the tax loss carryforward, as explained on
page 5, "Income Tax Expense".
*Mark of Schlumberger
-9-
<PAGE>
First Half 1997 Compared to First Half 1996
-------------------------------------------
Income for the first six months of $566 million and earnings per share of $1.15,
were 54% and 53% higher, respectively, than the same period last year.
Operating revenue for the first six months was $5.0 billion, up 20% from 1996.
Oilfield Services revenue grew 29%, while rig count worldwide grew 16%. All
businesses contributed significantly to the 76% increase in operating income.
Measurement & Systems revenue increased 2%, while operating income grew 2%
compared to the same period last year. The increase in operating results was due
to Automatic Test Equipment.
Business Review
(Stated in millions)
Oilfield Services Measurement & Systems
----------------- ---------------------
Six Months 1997 1996 % change 1997 1996 % change
- ---------- ---- ---- -------- ---- ---- --------
Operating Revenue $ 3,595 $ 2,797 29% $ 1,413 $ 1,383 2%
Operating Income(1) $ 689 $ 392 76% $ 65 $ 64 2%
(1) Operating income represents income before income taxes, excluding
interest expense and interest and other income.
Oilfield Services
Operating revenue for Oilfield Services was $798 million (29%) above last year.
All regions and businesses posted substantial increases led by Wireline &
Testing, Dowell and Sedco Forex.
New Wireline & Testing high-technology services, including CMR* Combinable
Magnetic Resonance, MDT* Modular Formation Dynamics tester and PLATFORM EXPRESS*
services, gained wider acceptance for their recognized value to clients, and
significantly boosted revenue worldwide.
Oilfield Services operating income increased overall by 76%.
North America
- -------------
Revenue increased 34%, representing 20% of consolidated revenue. Rig count
increased 24%. All businesses were ahead of last year, fueled by high activity
in the Gulf of Mexico, a significant rise in land activity and favorable weather
in Canada during the spring breakup.
The Gulf of Mexico benefited from the use of DeepSEA EXPRESS* service, foam
cementing systems and strong vessel performance. Also, demand for our new sand
control technology was a contributing factor. In one trip in the hole, this
service combines the tubing-conveyed perforating hardware and cased-hole testing
tools from Wireline & Testing with the gravel fluids and the gravel packer from
Dowell.
-10-
<PAGE>
Logging-while-drilling (LWD) and directional drilling activity grew, due to an
expanded client base and strong drilling activity during the traditional spring
slowdown in Canada. Despite the substantial rise in rig count, land and offshore
activities each experienced a higher growth rate.
Outside North America
- ---------------------
The rig count increased by 3% outside North America with revenue up 26%,
representing 53% of consolidated revenue. Our businesses, across all
geographic regions, benefited from the strong upswings in activity and improved
technology.
Integrated Project Management (IPM) activity increased considerably compared
with the same period in 1996, with overall revenue rising over 200%. Well
construction activity remained high. Several large projects were awarded to IPM
for well construction and completion in the CIS, Latin America and the Middle
East.
In late March, the semisubmersible Sedco 707 was transferred from the North Sea
to a shipyard in France for a six-month life enhancement and deep-water upgrade,
including the installation of dynamic positioning equipment, after which the rig
will be mobilized to Brazil for a five-year contract. The semisubmersible Orca,
formerly Sedco I, was commissioned in South Africa as an early production
facility under a multiyear, integrated service contract in which both rig
management and production services will be provided.
The new Wireline & Testing PL Flagship* production logging technology continued
to gain acceptance in the Middle East and the North Sea owing to its unique
capacity to diagnose production problems in high-angle and horizontal wells.
Logging-while-drilling and measurements-while-drilling have had continued
success in the smaller hole market with the introduction of SHARP* second-
generation slim MWD technology, which extends the capability of our current
technology to ultra-short-radius drilling.
The VIPER* system, a coiled tubing measurements-while-drilling (MWD) and motor
system for slim holes, demonstrates the integration value of our oilfield
services.
Information Technology and Data Management Services grew significantly. Software
Products sales increased significantly over last year on continued sharp growth
in North America and in South America, Europe and the CIS. Also during the
period, GeoQuest signed an agreement with a major European oil company to
jointly develop data management software applications.
Measurement & Systems
Revenue grew 2% from last year, despite the impact of unfavorable exchange rate
effects. Increased card demand, acquisitions made by Electronic Transactions in
1996 and strong growth at ATE more than offset the decline in Metering
activities. Orders increased 10%.
Measurement & Systems operating income rose 2% compared to the prior year, due
to ATE. Improvements in the US metering market were more than offset by
shortfalls in Europe.
-11-
<PAGE>
During the six months, ATE revenue rose 12% while orders increased by 39%.
Electronic Transactions revenue improved 28%. Cards growth was particularly
strong, with increased demand for subscriber identity module (SIM) cards.
Including the performance of previously acquired companies, orders grew 35%.
Metering revenue was down 9%, as conditions in Europe offset gains made by North
and South America. Metering orders were down 8% versus last year. Systems &
Services revenue was up 3%. Service business in Europe, especially Italy,
continued to benefit from contractual maintenance activities. Compared with the
prior year, orders increased 7%.
Interest and other income increased $5 million from the same period last year
primarily due to higher average investment balances. Gross margin increased
from 24% to 26%. Research and engineering expense increased 5% from last year
but decreased to 4.7% of operating revenue from 5.4% in 1996. Marketing expense
was up 2%. General expense, expressed as a percentage of operating revenue,
decreased from 4.2% to 3.6%. Interest expense increased $2 million from the
same period last year due to higher average debt. The effective tax rate
increased 4 percentage points, to 22%, which reflects the higher US income tax
expense following the recognition of the tax loss carryforward, as explained on
page 5 "Income Tax Expense".
*Mark of Schlumberger
-12-
<PAGE>
PART II. OTHER INFORMATION
-------- -----------------
Item 6: Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits : None
(b) Reports on Form 8-K: None
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized and in his capacity as principal financial
officer.
Schlumberger Limited
(Registrant)
Date: August 14, 1997 /s/ Arthur Lindenauer
--------------- ----------------------
Arthur Lindenauer
Executive Vice President - Finance
and Chief Financial Officer
-13-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FORM 10 Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,442,165
<SECURITIES> 0
<RECEIVABLES> 2,625,676
<ALLOWANCES> (57,608)
<INVENTORY> 1,053,522
<CURRENT-ASSETS> 5,492,470
<PP&E> 9,798,712
<DEPRECIATION> (6,357,615)
<TOTAL-ASSETS> 10,800,745
<CURRENT-LIABILITIES> 3,470,163
<BONDS> 0
0
0
<COMMON> 829,743
<OTHER-SE> 5,187,473
<TOTAL-LIABILITY-AND-EQUITY> 10,800,745
<SALES> 1,284,372
<TOTAL-REVENUES> 5,042,582
<CGS> 855,241
<TOTAL-COSTS> 3,712,112
<OTHER-EXPENSES> 569,577
<LOSS-PROVISION> 6,041
<INTEREST-EXPENSE> 37,136
<INCOME-PRETAX> 723,757
<INCOME-TAX> 157,308
<INCOME-CONTINUING> 566,449
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 566,449
<EPS-PRIMARY> 1.15<F1>
<EPS-DILUTED> 1.15<F1>
<FN>
<F1>ADJUSTED FOR TWO-FOR-ONE STOCK SPLIT ON JUNE 2, 1997.
</FN>
</TABLE>
