SLB Quarterly Profit Slips as Iran War Dents Middle East Oilfield Activity

New SLB logo seen in Houston, Texas
The entrance to oilfield service provider SLB’s office in Houston, Texas, showing the former Schlumberger’s new name and logo, is seen in this handout image taken June 2023. Courtesy of SLB/Handout via REUTERS ATTENTION EDITORS – THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY./File Photo

 (Reuters) – SLB reported a fall in first-quarter profit on Friday, as disruptions from the war in ​Iran forced the top oilfield services provider to rein in operations ‌in a key oil-producing region, sending its shares down more than 4% before the bell.

The company last month said it demobilized operations in a few countries in response to ​customer actions to safeguard personnel and facilities.

Revenue from Middle East and ​Asia dropped 10% to $2.69 billion, hurt by disruptions in Qatar ⁠due to a force majeure and in Iraq and offshore operations across ​the region from production shut-in constraints and security conditions.


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“It was a challenging start ​to the year as widespread disruptions in the Middle East impacted our business,” said CEO Olivier Le Peuch.

“The impact was most pronounced in Well Construction and Reservoir Performance,” he ​added.

The Middle East is the company’s biggest market and accounted for about ​34% of its annual revenue in 2025.

Chart showing OFS Revenues by geographic regions. Revenue from the Middle East accounts for a significant portion of all major oilfield services providers
Chart showing OFS Revenues by geographic regions. Revenue from the Middle East accounts for a significant portion of all major oilfield services providers

SLB’s net income fell 5.6% to $752 million during the ‌quarter.

RESULTS ⁠TRAIL RIVALS

Peer Halliburton  beat expectations for quarterly profit on strength in Latin America and Europe. Meanwhile, Baker Hughes said strong demand in its industrial and energy technology unit offset drilling weakness caused by the Iran war.

Both rivals warned of near-term ​challenges due to the ​conflict, with ⁠Halliburton flagging a 7-to-9 cent hit to its current-quarter earnings per share.

However, the analysts expect post-war repairs to generate ​demand for the sector with the Big 3 oilfield services ​providers having ⁠the highest exposure to the Middle East. Rystad Energy has projected as much as $58 billion in repair costs.

SLB share price
SLB share price
SLB’s Le Peuch said he expects increased investment in ⁠short-cycle ​projects in North America and Latin America as ​well as long-cycle developments once the conflict subsides.

Reporting by Vallari Srivastava in Bengaluru; Editing by Sriraj Kalluvila

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