NOV Cuts Earnings Guidance Amid Iran War Disruptions

NOV Inc., one of the largest US makers of oilfield gear, has reduced its earnings guidance for the first quarter due to increased costs and logistical issues stemming from the Middle East conflict.

The company, which supplies equipment and services to oil and gas operators in the region, had previously forecast adjusted earnings of $200 million to $225 million. However, Chief Executive Officer Jose Bayardo announced that the war has dented revenue by approximately $54 million and adjusted earnings by around $32 million.

Bayardo attributed the decline to safety and logistical problems from the conflict, which disproportionately affected quarter-end deliveries of capital equipment and products in the region. The company also faced higher shipping and freight costs, further amplifying the impact on profits.

This is not an isolated incident; other oilfield services firms, such as SLB, have also publicly warned that the ongoing conflict has pushed earnings below earlier guidance.