Patrick Schorn President Operations Cowen and Company Ultimate Energy Conference New York, December 1, 2015
Navigating the Most Severe Downturn in Decades Indexed US Rig Count (Peak=100) 100 90 Downturn driven by supply that has outstripped growth in demand 80 70 90-91 Q3 US rig count deteriorated more 01-02 than the bottom reached in…
Displaying Margin Leadership Through the Cycle Revenue (B) Global Revenue International Margins North America Margins % 50 % 40 30 20 10 0 2008 2009 2010 2011 2012 2013 2014 Q3 YTD 2008 2009 2010 2011 2012 2013 2014 Q3…
Managing the Downturn Revenue Decline Decremental Margins (Year-On-Year) (Year-on-Year) -9% -23% -18% -34% -58% -61% -32% -34% Includes Includes Transformation Transformation impact impact NAM International NAM…
Accelerating Transformation In The Downturn Schlumberger Transformation Goals Working Operational Capital Asset Reliability Utilization 25% 100% 10x Unit Support People Costs Productivity 20% 10% Our goal is to deliver…
Improving Capital Efficiency Through Asset Utilization CAPEX as a Percentage of Revenue % Assets historically underutilized Increasing utilization lowers capital investment as percentage of revenue Q1 Q1 Q1 Q1 Q1 11 12 13 14…
Increasing Operational Reliability Reliability* 5.5 X Halfway to 10-fold reduction goal 2009 2010 2011 2012 2013 2014 Q3 YTD 2015 Product reliability NPT rate reduced by 80%, process reliability next Non-Productive Time /…
Improving People Productivity Remote OpsD&M Mexico Average Crew Size -52% Multiskilled crews perform operations from several different product lines 2013 2015 Remote centers allow experts to oversee multiple operations -16%…
Reducing Unit Support Cost Revenue and Workforce trend relative to 2004 % Revenue* Field & Operations (Variable) Workforce** Creation of shared services organization Support (Fixed) Workforce** streamlined internal…
Managing Working Capital Working Capital as Percentage of Revenue* B % 18 Receivable challenges internationally 12 Centralized maintenance reduces inventory 6 Distribution centers enable JIT inventory 0 2011 2012 2013 2014…
Transforming Performance-A Multiyear Initiative Operational Reliability 10x Impact on Operational Reliability Asset Utilization 100% Impact on Assets Utilization Working Capital 25% Impact on Working Capital People…
Delivering PerformanceThe Det Norske Ivar Aasen Project Integration segments Group and product lines Based on an integrated model that started early Transformation Workflows Dedicated project organization deploying best…
Delivering PerformanceThe Det Norske Ivar Aasen Project Two of the fastest completed wells Days Two of the fastest drilled wells Meters drilled per day 80 60 40 20 10 12 0 Well Well Well Well D-10 D-11 D-10 D-11 Det…
North America Outlook Revenue (B) 10-12% land rig count decline in Q4 with 20 continuing pricing pressure 15 10 Focus on key customers, continue to stack 5 equipment rather than operate at a loss 0 2011 2012 2013 2014 Q3 YTD…
International Outlook Revenue (B) Pricing pressure driven by customer budget 40 cuts, revenue decline continues 30 20 Northern hemisphere seasonally weak, not offset by usual year end sales 10 0 2011 2012 2013 2014 Q3 YTD…
Delivering Strong Cash Flow Conversion Free Cash Flow as percentage of Income (Cash-conversion rate) 200% Strong cash flow in Q3 2015 YTD 100% 75% Conversion exceeds 75% target 0 Cash enables M&A opportunities Return to…
Closing the Cameron Transaction on Target Drilling Production Drilling Surface Valves & Process Systems Subsea Systems Measurement Systems Integration planning well advanced Raising debt for closing in Q1 Antitrust…
Conclusions Continuing multiyear run of financial outperformance by focusing on proactive resource management and service delivery while balancing margin and share Transformation contributing significantly to results by saving cost,…
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