SLB Profit Slips Amid Iran War Disruptions
Oilfield services provider SLB reported a decline in first-quarter profit due to disruptions caused by the war in Iran. The company's CEO, Olivier Le Peuch, stated that it was a challenging start to the year as widespread disruptions in the Middle East impacted its business.
The impact was most pronounced in Well Construction and Reservoir Performance, with revenue from the Middle East dropping 10% to $2.69 billion. This region accounts for about 34% of SLB's annual revenue.
SLB's net income fell 5.6% to $752 million during the quarter. The company's shares dropped more than 4% before the bell due to the disappointing earnings report.
Rivals Halliburton and Baker Hughes also reported mixed results, with Halliburton beating expectations but warning of a 7-to-9 cent hit to its current-quarter earnings per share. Analysts expect increased investment in short-cycle projects once the conflict subsides.