Item 1. Financial Statements.

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Item 1. Financial Statements.

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)


(Stated in millions, except per share amounts)

	Second Quarter				Six Months
	2025		2024		2025		2024
Revenue
Services	$	5,327	$	5,902	$	10,692	$	11,578
Product sales		3,219		3,237		6,343		6,268
Total Revenue		8,546		9,139		17,035		17,846
Interest & other income		252		85		330		169
Expenses
Cost of services		4,227		4,523		8,480		8,939
Cost of sales		2,707		2,739		5,335		5,331
Research & engineering		180		188		352		369
General & administrative		87		94		184		215
Restructuring & other		135		111		293		111
Merger & integration		35		16		84		27
Interest		142		132		289		245
Income before taxes		1,285		1,421		2,348		2,778
Tax expense		237		276		471		535
Net income		1,048		1,145		1,877		2,243
Net income attributable to noncontrolling interests		34		33		66		63
Net income attributable to SLB	$	1,014	$	1,112	$	1,811	$	2,180

Basic income per share of SLB	$	0.75	$	0.78	$	1.33	$	1.53

Diluted income per share of SLB	$	0.74	$	0.77	$	1.32	$	1.51
Average shares outstanding:
Basic		1,352		1,428		1,359		1,429
Assuming dilution		1,366		1,443		1,373		1,445

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)


(Stated in millions)

	Second Quarter						Six Months
	2025			2024			2025			2024
Net income	$	1,048		$	1,145		$	1,877		$	2,243
Currency translation adjustments
Unrealized net change arising during the period		54			30			226			53
Cash flow hedges
Net gain (loss) on cash flow hedges		26			(26	)		(39	)		(43	)
Reclassification to net income of net realized loss (gain)		(5	)		6			-			5
Pension and other postretirement benefit plans
Amortization to net income of net actuarial gain (loss)		8			(1	)		16			(1	)
Amortization to net income of net prior service credit		(3	)		(5	)		(6	)		(11	)
Income taxes on pension and other postretirement benefit plans		(1	)		2			(1	)		3
Other		2			(4	)		11			1
Comprehensive income		1,129			1,147			2,084			2,250
Comprehensive income attributable to noncontrolling interests		34			33			66			63
Comprehensive income attributable to SLB	$	1,095		$	1,114		$	2,018		$	2,187

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET


(Stated in millions)

	Jun. 30,
	2025			Dec. 31,
	(Unaudited)			2024
ASSETS
Current Assets
Cash	$	3,236		$	3,544
Short-term investments		511			1,125
Receivables less allowance for doubtful accounts (2025 - $334; 2024 - $325)		8,586			8,011
Inventories		4,740			4,375
Other current assets		1,380			1,515
		18,453			18,570
Investments in Affiliated Companies		1,676			1,635
Fixed Assets less accumulated depreciation		7,399			7,359
Goodwill		14,658			14,593
Intangible Assets		2,893			3,012
Other Assets		3,690			3,766
	$	48,769		$	48,935
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	9,993		$	10,375
Estimated liability for taxes on income		833			982
Short-term borrowings and current portion of long-term debt		2,807			1,051
Dividends payable		402			403
		14,035			12,811
Long-term Debt		10,891			11,023
Postretirement Benefits		502			512
Deferred Taxes		12			67
Other Liabilities		1,778			2,172
		27,218			26,585
Equity
Common stock		11,354			11,458
Treasury stock		(3,742	)		(1,773	)
Retained earnings		17,433			16,395
Accumulated other comprehensive loss		(4,743	)		(4,950	)
SLB stockholders’ equity		20,302			21,130
Noncontrolling interests		1,249			1,220
		21,551			22,350
	$	48,769		$	48,935

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)


(Stated in millions)

	Six Months Ended June 30,
	2025			2024
Cash flows from operating activities:
Net income	$	1,877		$	2,243
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of APS project		(149	)		-
Impairment of equity method investment		69			-
Depreciation and amortization (1)		1,273			1,231
Deferred taxes		(60	)		(29	)
Stock-based compensation expense		168			173
Earnings of equity method investments, less dividends received		(47	)		12
Change in assets and liabilities: (2)
Increase in receivables		(480	)		(755	)
Increase in inventories		(288	)		(149	)
Decrease in other current assets		86			107
Increase in other assets		(44	)		(5	)
Decrease in accounts payable and accrued liabilities		(557	)		(942	)
Decrease in estimated liability for taxes on income		(162	)		(167	)
Increase in other liabilities		73			19
Other		43			25
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,802			1,763
Cash flows from investing activities:
Capital expenditures		(769	)		(862	)
APS investments		(225	)		(256	)
Exploration data costs capitalized		(83	)		(91	)
Business acquisitions and investments, net of cash acquired		(47	)		(505	)
Sales of short-term investments, net		632			47
Purchase of Blue Chip Swap securities		(123	)		(76	)
Proceeds from sale of Blue Chip securities		102			51
Proceed from sale of APS investment		316			-
Other		11			48
NET CASH USED IN INVESTING ACTIVITIES		(186	)		(1,644	)
Cash flows from financing activities:
Dividends paid		(773	)		(751	)
Proceeds from employee stock purchase plan		105			100
Proceeds from exercise of stock options		8			20
Taxes paid on net settled stock-based compensation awards		(55	)		(78	)
Stock repurchase program		(2,300	)		(735	)
Proceeds from issuance of long-term debt		1,081			1,849
Repayment of long-term debt		-			(426	)
Net decrease in short-term borrowings		(28	)		(19	)
Other		(27	)		(6	)
NET CASH USED IN FINANCING ACTIVITIES		(1,989	)		(46	)
Net (decrease) increase in cash before translation effect		(373	)		73
Translation effect on cash		65			(20	)
Cash, beginning of period		3,544			2,900
Cash, end of period	$	3,236		$	2,953

(1)

Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and Asset Performance Solutions ("APS") investments.

(2)

Net of the effect of business acquisitions and divestitures.

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT O****F STOCKHOLDERS’ EQUITY

(Unaudited)


	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2025 – June 30, 2025	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2025	$	11,458		$	(1,773	)	$	16,395		$	(4,950	)	$	1,220		$	22,350
Net income								1,811						66			1,877
Currency translation adjustments											226						226
Changes in fair value of cash flow hedges											(39	)					(39	)
Pension and other postretirement benefit plans											9						9
Shares sold to optionees, less shares exchanged		(2	)		10												8
Vesting of restricted stock, net of taxes withheld		(226	)		171												(55	)
Employee stock purchase plan		(44	)		149												105
Stock repurchase program					(2,300	)											(2,300	)
Stock-based compensation expense		168															168
Dividends declared ($0.57 per share)								(773	)								(773	)
Dividends paid to noncontrolling interests														(43	)		(43	)
Other					1						11			6			18
Balance, June 30, 2025	$	11,354		$	(3,742	)	$	17,433		$	(4,743	)	$	1,249		$	21,551



										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2024 – June 30, 2024	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2024	$	11,624		$	(678	)	$	13,497		$	(4,254	)	$	1,170		$	21,359
Net income								2,180						63			2,243
Currency translation adjustments											53						53
Changes in fair value of cash flow hedges											(38	)					(38	)
Pension and other postretirement benefit plans											(9	)					(9	)
Shares sold to optionees, less shares exchanged		(9	)		29												20
Vesting of restricted stock, net of taxes withheld		(351	)		273												(78	)
Employee stock purchase plan		(36	)		136												100
Stock repurchase program					(735	)											(735	)
Stock-based compensation expense		173															173
Dividends declared ($0.55 per share)								(787	)								(787	)
Dividends paid to noncontrolling interests														(11	)		(11	)
Other					2						1			(13	)		(10	)
Balance, June 30, 2024	$	11,401		$	(973	)	$	14,890		$	(4,247	)	$	1,209		$	22,280



										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
April 1, 2025 – June 30, 2025	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, April 1, 2025	$	10,827		$	(3,292	)	$	16,804		$	(4,824	)	$	1,233		$	20,748
Net income								1,014						34			1,048
Currency translation adjustments											54						54
Changes in fair value of cash flow hedges											21						21
Pension and other postretirement benefit plans											4						4
Shares sold to optionees, less shares exchanged		(1	)		1												-
Vesting of restricted stock, net of taxes withheld		(9	)		7												(2	)
Stock repurchase program		460			(460	)											-
Stock-based compensation expense		77															77
Dividends declared ($0.285 per share)								(385	)								(385	)
Dividends paid to noncontrolling interests														(22	)		(22	)
Other					2						2			4			8
Balance, June 30, 2025	$	11,354		$	(3,742	)	$	17,433		$	(4,743	)	$	1,249		$	21,551


	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
April 1, 2024 – June 30, 2024	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, April 1, 2024	$	11,344		$	(531	)	$	14,172		$	(4,249	)	$	1,187		$	21,923
Net income								1,112						33			1,145
Currency translation adjustments											30						30
Changes in fair value of cash flow hedges											(20	)					(20	)
Pension and other postretirement benefit plans											(4	)					(4	)
Shares sold to optionees, less shares exchanged		(3	)		8												5
Vesting of restricted stock, net of taxes withheld		(13	)		13												-
Stock repurchase program					(465	)											(465	)
Stock-based compensation expense		73															73
Dividends declared ($0.275 per share)								(394	)								(394	)
Dividends paid to noncontrolling interests														(11	)		(11	)
Other					2						(4	)					(2	)
Balance, June 30, 2024	$	11,401		$	(973	)	$	14,890		$	(4,247	)	$	1,209		$	22,280

SHARES OF COMMON STOCK

(Unaudited)


			(Stated in millions)

						Shares
	Issued		In Treasury			Outstanding
Balance, January 1, 2025		1,439		(38	)		1,401
Vesting of restricted stock		-		4			4
Shares issued under employee stock purchase plan		-		3			3
Stock repurchase program		-		(57	)		(57	)
Balance, June 30, 2025		1,439		(88	)		1,351

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

The accompanying unaudited consolidated financial statements of Schlumberger Limited and its subsidiaries (“SLB”) have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of SLB management, all adjustments considered necessary for a fair statement have been included in the accompanying unaudited financial statements. All intercompany transactions and balances have been eliminated in consolidation. Operating results for the three-month period ended June 30, 2025 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025. The December 31, 2024 balance sheet information has been derived from the SLB 2024 audited financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the SLB Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on January 22, 2025.

ChampionX Transaction

On July 16, 2025, SLB completed the acquisition of ChampionX Corporation ("ChampionX") in an all-stock transaction. ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. Under the terms of the agreement, ChampionX shareholders received 0.735 shares of SLB common stock in exchange for each ChampionX share. At the closing of the transaction ChampionX shareholders received approximately 141 million shares of SLB common stock valued at $4.9 billion. Excluding its Drilling Technology business, which was disposed of concurrently with the closing of the transaction, ChampionX recorded revenue of approximately $3.4 billion in 2024 and $1.7 billion during the six months ended June 30, 2025.

2. Charges and Credits

2025

Second quarter

During the second quarter of 2025, SLB recorded a $69 million impairment charge relating to an equity method investment that was determined to be other-than-temporarily impaired. This charge is classified in Restructuring & other in the Consolidated Statement of Income.

During the second quarter of 2025, SLB recorded a charge of $66 million relating to workforce reductions to align its resources with activity levels. This charge is classified in Restructuring & other in the Consolidated Statement of Income. SLB may record additional charges related to workforce reductions in 2025 as it continues to align its resources with activity levels.

During the second quarter of 2025, in connection with the ChampionX transaction and the October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $35 million of charges related to merger and integration-related costs. These costs are classified in Merger & integration in the Consolidated Statement of Income.

During the second quarter of 2025, SLB completed the sale of its interest in the Palliser APS project in Canada in exchange for net cash proceeds of $338 million, of which $22 million were received in the third quarter of 2025. SLB recorded a gain of $149 million as a result of this transaction. This gain is classified in Interest & other income in the Consolidated Statement of Income.

First quarter

During the first quarter of 2025, SLB recorded a $158 million charge relating to workforce reductions to realign and optimize its support and service delivery structure. This charge is classified in Restructuring & other in the Consolidated Statement of Income.

During the first quarter of 2025, in connection with the ChampionX transaction and the October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $49 million of charges related to merger and integration-related costs. These costs are classified in Merger & integration in the Consolidated Statement of Income.


	(Stated in millions)

	Pretax Charge			Tax Benefit			Noncontrolling
	(Credit)			(Expense)			Interests		Net
First quarter:
Workforce reductions	$	158		$	10		$	-	$	148
Merger and integration		49			1			4		44
Second quarter:										-
Impairment of equity method investment		69			12			-		57
Workforce reductions		66			3			-		63
Merger and integration		35			4			4		27
Gain on sale of Palliser APS project		(149	)		(4	)		-		(145	)
	$	228		$	26		$	8	$	194

2024

Second quarter

During the second quarter of 2024, SLB recorded a charge of $111 million related to workforce reductions to realign and optimize its support and service delivery structure. This charge is classified in Restructuring & other in the Consolidated Statement of Income.

In connection with SLB's October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $31 million of charges during the second quarter of 2024 consisting of: $15 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventories to its estimated fair value and $16 million of other merger and integration-related costs. $15 million of these costs are classified in Cost of Sales in the Consolidated Statement of Income, with the remaining $16 million classified in Merger & integration.

First quarter

In connection with SLB's acquisition of the Aker Solutions subsea business, SLB recorded $25 million of charges during the first quarter of 2024 consisting of: $14 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventories to its estimated fair value and $11 million of other merger and integration-related costs. $14 million of these costs are classified in Cost of Sales in the Consolidated Statement of Income with the remaining $11 million classified in Merger & integration.


	(Stated in millions)

					Noncontrolling
	Pretax Charge		Tax Benefit		Interests		Net
First quarter:
Merger and integration	$	25	$	6	$	5	$	14
Second quarter:
Workforce reductions		111		17		-		94
Merger and integration		31		5		8		18
	$	167	$	28	$	13	$	126

3. Earnings per Share

The following is a reconciliation from basic earnings per share of SLB to diluted earnings per share of SLB:


	(Stated in millions, except per share amounts)

	2025						2024
	Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share		Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share
Second Quarter
Basic	$	1,014		1,352	$	0.75	$	1,112		1,428	$	0.78
Assumed exercise of stock options		-		-				-		1
Unvested restricted stock		-		14				-		14
Diluted	$	1,014		1,366	$	0.74	$	1,112		1,443	$	0.77


	2025						2024
	Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share		Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share
Six Months
Basic	$	1,811		1,359	$	1.33	$	2,180	$	1,429	$	1.53
Assumed exercise of stock options		-		-				-		1
Unvested restricted stock		-		14				-		15
Diluted	$	1,811		1,373	$	1.32	$	2,180	$	1,445	$	1.51

The number of outstanding options to purchase shares of SLB common stock that were not included in the computation of diluted income per share, because to do so would have had an antidilutive effect, was as follows:


(Stated in millions)

	Second Quarter				Six Months
	2025		2024		2025		2024
Employee stock options		18		17		18		17

4. Inventories

A summary of inventories, which are stated at the lower of average cost or net realizable value, is as follows:


(Stated in millions)

	Jun. 30,		Dec. 31,
	2025		2024
Raw materials & field materials	$	2,553	$	2,387
Work in progress		914		786
Finished goods		1,273		1,202
	$	4,740	$	4,375

5. Fixed Assets

Fixed assets consist of the following:


(Stated in millions)

	Jun. 30,		Dec. 31,
	2025		2024
Property, plant & equipment	$	30,332	$	29,573
Less: Accumulated depreciation		22,933		22,214
	$	7,399	$	7,359

Depreciation expense relating to fixed assets was as follows:


(Stated in millions)

	2025		2024
Second Quarter	$	408	$	384
Six Months	$	805	$	761

6. Intangible Assets

Intangible assets consist of the following:


	(Stated in millions)

	Jun. 30, 2025						Dec. 31, 2024
	Gross		Accumulated		Net Book		Gross		Accumulated		Net Book
	Book Value		Amortization		Value		Book Value		Amortization		Value
Customer relationships	$	1,889	$	845	$	1,044	$	1,887	$	799	$	1,088
Technology/technical know-how		1,619		923		696		1,588		872		716
Tradenames		795		317		478		795		299		496
Other		1,621		946		675		1,604		892		712
	$	5,924	$	3,031	$	2,893	$	5,874	$	2,862	$	3,012

Amortization expense charged to income was as follows:


(Stated in millions)

	2025		2024
Second Quarter	$	82	$	82
Six Months	$	164	$	163

Based on the carrying value of intangible assets at June 30, 2025, amortization expense for the subsequent five years is estimated to be: remaining two quarters of 2025—$162 million; 2026—$316 million; 2027—$312 million; 2028—$302 million; 2029—$289 million; and 2030—$284 million.

7. Long-term Debt

Long-term Debt consists of the following:


(Stated in millions)

	Jun. 30,		Dec. 31,
	2025		2024
3.90% Senior Notes due 2028	$	1,481	$	1,478
2.65% Senior Notes due 2030		1,246		1,250
1.375% Guaranteed Notes due 2026		1,171		1,040
2.00% Guaranteed Notes due 2032		1,166		1,034
0.25% Notes due 2027		1,054		936
0.50% Notes due 2031		1,053		935
4.30% Senior Notes due 2029		848		848
4.50% Senior Notes due 2028		497		497
5.00% Senior Notes due 2027		496		495
4.85% Senior Notes due 2033		494		498
5.00% Senior Notes due 2029		493		493
5.00% Senior Notes due 2034		486		489
7.00% Notes due 2038		197		197
5.95% Notes due 2041		111		111
5.13% Notes due 2043		98		98
1.00% Guaranteed Notes due 2026		-		624
	$	10,891	$	11,023

The estimated fair value of SLB’s Long-term Debt, based on quoted market prices at June 30, 2025 and December 31, 2024, was $10.5 billion and $10.4 billion, respectively.

At June 30, 2025, SLB had committed credit facility agreements with commercial banks aggregating $5.0 billion, of which $2.0 billion matures in February 2028 and $3.0 billion matures in December 2029. These committed facilities support commercial paper programs in the United States and Europe. There were no borrowings under these facilities at June 30, 2025 and December 31, 2024.

Commercial paper borrowings are classified as long-term debt to the extent they are backed up by available and unused committed credit facilities maturing in more than one year and to the extent it is SLB’s intent to maintain these obligations for longer than one year. Borrowings under the commercial paper programs at June 30, 2025, were $1.1 billion, all of which were classified in Short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheet. There were no borrowings under the commercial paper programs at December 31, 2024.

Schlumberger Limited fully and unconditionally guarantees the securities issued by certain of its subsidiaries, including securities issued by Schlumberger Investment S.A. and Schlumberger Finance Canada Ltd., both indirect wholly-owned subsidiaries of Schlumberger Limited.

8. Derivative Instruments and Hedging Activities

SLB’s functional currency is primarily the US dollar. However, outside the United States, a significant portion of SLB’s expenses is incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which SLB conducts business, the US dollar-reported expenses will increase (decrease).

Changes in foreign currency exchange rates expose SLB to risks on future cash flows relating to its fixed rate debt denominated in currencies other than the functional currency. SLB uses cross-currency interest rate swaps to provide a hedge against these risks. These contracts are accounted for as cash flow hedges, with the fair value of the derivative recorded on the Consolidated Balance Sheet and in Accumulated other comprehensive loss. Amounts recorded in Accumulated other comprehensive loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings.

Details regarding SLB’s outstanding cross-currency interest rate swaps as of June 30, 2025, were as follows:

During 2019, SLB entered into cross-currency interest rate swaps in order to hedge changes in the fair value of its €0.5 billion 0.25% Notes due 2027 and €0.5 billion 0.50% Notes due 2031 that were issued by a US-dollar functional currency subsidiary. These cross-currency interest rate swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 2.51% and 2.76%, respectively.

During 2020, a US-dollar functional currency subsidiary of SLB issued €0.8 billion of Euro-denominated debt. SLB entered into cross-currency interest rate swaps to hedge changes in the US dollar value of its €0.4 billion of 0.25% Notes due 2027 and €0.4 billion of 0.50% Notes due 2031. These cross-currency interest rate swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 1.87% and 2.20%, respectively.

During 2020, a US-dollar functional currency subsidiary of SLB issued €2.0 billion of Euro-denominated debt. SLB entered into cross-currency interest rate swaps to hedge changes in the US dollar value of its €1.0 billion of 1.375% Guaranteed Notes due 2026 and €1.0 billion of 2.00% Guaranteed Notes due 2032. These cross-currency interest rate swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 2.77% and 3.49%, respectively.

A summary of the amounts included in the Consolidated Balance Sheet relating to cross currency interest rate swaps was as follows:


	(Stated in millions)

	Jun. 30, 2025		Dec. 31, 2024
Other current assets	$	-	$	37
Other Assets	$	212	$	2
Other Liabilities	$	4	$	183

The fair values were determined using a model with inputs that are observable in the market or can be derived or corroborated by observable data.

SLB is exposed to risks on future cash flows to the extent that the local currency is not the functional currency and expenses denominated in local currency are not equal to revenues denominated in local currency. SLB uses foreign currency forward contracts to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges.

SLB is also exposed to changes in the fair value of assets and liabilities denominated in currencies other than the functional currency. While SLB uses foreign currency forward contracts to economically hedge this exposure as it relates to certain currencies, these contracts are not designated as hedges for accounting purposes. Instead, the fair value of the derivative is recorded on the Consolidated

Balance Sheet and changes in the fair value are recognized in the Consolidated Statement of Income, as are changes in the fair value of the hedged item.

Foreign currency forward contracts were outstanding for the US dollar equivalent of $5.1 billion and $5.5 billion in various foreign currencies as of June 30, 2025 and December 31, 2024, respectively.

Other than the previously mentioned cross-currency interest rate swaps, the fair value of the other outstanding derivatives was not material as of June 30, 2025 and December 31, 2024.

The effect of derivative instruments designated as cash flow hedges, and those not designated as hedges, on the Consolidated Statement of Income was as follows:


							(Stated in millions)

	Gain (Loss) Recognized in Income
	Second Quarter						Six Months
	2025			2024			2025			2024			Consolidated Statement of Income Classification
Derivatives designated as cash flow hedges:
Cross-currency interest rate swaps	$	330		$	(52	)	$	467		$	(146	)	Cost of services/sales
Cross-currency interest rate swaps		(18	)		(22	)		(37	)		(44	)	Interest expense
Commodity contracts		-			(7	)		-			(10	)	Revenue
Foreign currency forward contracts		-			2			(1	)		2		Cost of services/sales
Foreign currency forward contracts		4			(1	)		-			2		Revenue
	$	316		$	(80	)	$	429		$	(196	)
Derivatives not designated as hedges:
Foreign currency forward contracts	$	(17	)	$	18		$	42		$	23		Cost of services/sales

SLB has issued credit default swaps (“CDSs”) to certain third-party financial institutions that have an aggregate notional amount outstanding of approximately $1.0 billion as of June 30, 2025. The CDSs relate to borrowings provided by the financial institutions to SLB’s primary customer in Mexico. The borrowings were used by this customer to pay certain of SLB’s outstanding receivables. Approximately $0.2 billion of the outstanding CDSs reduces on a monthly basis over its remaining 8-month term while the remaining $0.8 billion reduces on a monthly basis over its remaining 12-month term. The fair value of these derivative liabilities was not material at June 30, 2025.

9. Contingencies

SLB is party to various legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote. However, litigation is inherently uncertain, and it is not possible to predict the ultimate disposition of any of these proceedings.

10. Segment Information

Financial information by segment is as follows:


				(Stated in millions)

	Second Quarter 2025
							Depreciation
				Income			and		Capital
	Revenue			Before Taxes			Amortization		Investments (5)
Digital & Integration	$	995		$	327		$	148	$	150
Reservoir Performance		1,691			314			107		124
Well Construction		2,963			551			169		118
Production Systems		3,036			499			91		113
Eliminations & other		(139	)		(107	)		73		15
Corporate & other (1)					(169	)		45
Interest income (2)					30
Interest expense (3)					(139	)
Charges and credits (4)					(21	)
	$	8,546		$	1,285		$	633	$	520


				(Stated in millions)

	Second Quarter 2024
							Depreciation
				Income			and		Capital
	Revenue			Before Taxes			Amortization		Investments (5)
Digital & Integration	$	1,050		$	325		$	170	$	197
Reservoir Performance		1,819			376			101		138
Well Construction		3,411			742			162		198
Production Systems		3,025			473			83		99
Eliminations & other		(166	)		(62	)		71		28
Corporate & other (1)					(191	)		44
Interest income (2)					29
Interest expense (3)					(129	)
Charges and credits (4)					(142	)
	$	9,139		$	1,421		$	631	$	660

(1)

Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.

(2)

Interest income excludes amounts that are included in the segments’ income ($- million in 2025; $9 million in 2024).

(3)

Interest expense excludes amounts that are included in the segments’ income ($3 million in 2025; $3 million in 2024).

(4)

See Note 2 – Charges and Credits.

(5)

Capital investments included capital expenditures, APS investments, and exploration data costs capitalized.


				(Stated in millions)

	Six Months 2025
							Depreciation
				Income			and		Capital
	Revenue			Before Taxes			Amortization		Investments (5)
Digital & Integration	$	2,001		$	633		$	315	$	311
Reservoir Performance		3,391			596			211		261
Well Construction		5,940			1,140			333		247
Production Systems		5,974			973			182		204
Eliminations & other		(271	)		(202	)		144		54
Corporate & other (1)					(347	)		88
Interest income (2)					66
Interest expense (3)					(283	)
Charges and credits (4)					(228	)
	$	17,035		$	2,348		$	1,273	$	1,077


				(Stated in millions)

	Six Months 2024
							Depreciation
				Income			and		Capital
	Revenue			Before Taxes			Amortization		Investments (5)
Digital & Integration	$	2,003		$	579		$	318	$	348
Reservoir Performance		3,544			715			199		253
Well Construction		6,779			1,432			318		390
Production Systems		5,843			873			165		177
Eliminations & other		(323	)		(97	)		143		41
Corporate & other (1)					(382	)		88
Interest income (2)					63
Interest expense (3)					(238	)
Charges and credits (4)					(167	)
	$	17,846		$	2,778		$	1,231	$	1,209

(1)

(2)

Interest income excludes amounts that are included in the segments’ income ($- million in 2025; $13 million in 2024).

(3)

Interest expense excludes amounts that are included in the segments’ income ($6 million in 2025; $7 million in 2024).

(4)

See Note 2 – Charges and Credits.

(5)

Capital investments included capital expenditures, APS investments, and exploration data costs capitalized.

Total assets by segment are as follows:


	(Stated in millions)

		Jun. 30,		Dec. 31,
		2025		2024
Digital & Integration		$	2,708	$	3,117
Reservoir Performance			4,088		3,802
Well Construction			6,754		6,741
Production Systems			7,741		7,116
Goodwill and intangibles			17,551		17,605
All other assets			9,927		10,554
		$	48,769	$	48,935

Segment assets consist of receivables, inventories, fixed assets, exploration data costs capitalized, and APS investments.

Revenue by geographic area was as follows:


					(Stated in millions)

	Second Quarter				Six Months
	2025		2024		2025		2024
North America	$	1,655	$	1,644	$	3,373	$	3,242
Latin America		1,492		1,742		2,986		3,395
Europe & Africa (1)		2,369		2,442		4,604		4,764
Middle East & Asia		2,986		3,268		5,983		6,348
Other		44		43		89		97
	$	8,546	$	9,139	$	17,035	$	17,846

(1)

Includes Russia and the Caspian region.

North America and International revenue disaggregated by segment was as follows:


							(Stated in millions)

	Second Quarter 2025
	North
	America			International			Other			Total
Digital & Integration	$	223		$	769		$	3		$	995
Reservoir Performance		148			1,541			2			1,691
Well Construction		512			2,394			57			2,963
Production Systems		789			2,243			4			3,036
Eliminations & other		(17	)		(100	)		(22	)		(139	)
	$	1,655		$	6,847		$	44		$	8,546


	Second Quarter 2024
	North
	America			International			Other			Total
Digital & Integration	$	291		$	757		$	2		$	1,050
Reservoir Performance		134			1,684			1			1,819
Well Construction		592			2,768			51			3,411
Production Systems		640			2,378			7			3,025
Eliminations & other		(13	)		(135	)		(18	)		(166	)
	$	1,644		$	7,452		$	43		$	9,139



	Six Months 2025
	North
	America			International			Other			Total
Digital & Integration	$	512		$	1,486		$	3		$	2,001
Reservoir Performance		290			3,097			4			3,391
Well Construction		1,054			4,775			111			5,940
Production Systems		1,557			4,410			7			5,974
Eliminations & other		(40	)		(195	)		(36	)		(271	)
	$	3,373		$	13,573		$	89		$	17,035


	Six Months 2024
	North
	America			International			Other			Total
Digital & Integration	$	527		$	1,474		$	2		$	2,003
Reservoir Performance		264			3,276			4			3,544
Well Construction		1,196			5,475			108			6,779
Production Systems		1,286			4,543			14			5,843
Eliminations & other		(31	)		(261	)		(31	)		(323	)
	$	3,242		$	14,507		$	97		$	17,846

Significant segment expenses, which represent the difference between segment revenue and pretax segment income, consist of the following:


(Stated in millions)

	Second Quarter 2025
	Digital &		Reservoir		Well		Production
	Integration		Performance		Construction		Systems
Compensation	$	198	$	407	$	592	$	235
Cost of products, materials, and supplies		-		279		818		1,882
Depreciation and amortization		148		107		169		91
Allocations		105		163		240		139
Other		217		421		593		190
	$	668	$	1,377	$	2,412	$	2,537


	Second Quarter 2024
	Digital &		Reservoir		Well		Production
	Integration		Performance		Construction		Systems
Compensation	$	210	$	422	$	664	$	267
Cost of products, materials, and supplies		-		310		899		1,907
Depreciation and amortization		170		101		162		83
Allocations		108		166		252		133
Other		237		444		692		162
	$	725	$	1,443	$	2,669	$	2,552



	Six Months 2025
	Digital &		Reservoir		Well		Production
	Integration		Performance		Construction		Systems
Compensation	$	404	$	814	$	1,195	$	476
Cost of products, materials, and supplies		-		587		1,620		3,702
Depreciation and amortization		315		211		333		182
Allocations		206		327		490		276
Other		443		856		1,162		365
	$	1,368	$	2,795	$	4,800	$	5,001


	Six Months 2024
	Digital &		Reservoir		Well		Production
	Integration		Performance		Construction		Systems
Compensation	$	431	$	814	$	1,318	$	561
Cost of products, materials, and supplies		-		608		1,826		3,668
Depreciation and amortization		318		199		318		165
Allocations		215		328		503		262
Other		460		880		1,382		314
	$	1,424	$	2,829	$	5,347	$	4,970

Other segment expenses include transportation, mobilization, lease, professional fees, and other costs.

Revenue in excess of billings related to contracts where revenue is recognized over time was $0.5 billion at June 30, 2025 and $0.5 billion at December 31, 2024. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.

Total backlog was $5.7 billion at June 30, 2025, of which approximately 55% is expected to be recognized as revenue over the next 12 months.

Billings and cash collections in excess of revenue was $2.2 billion at June 30, 2025 and $2.0 billion at December 31, 2024. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.

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