SLB quarterly profit slips as Iran war dents Middle East oilfield activity

Oil pumps work in the desert oil fields of Sakhir, Bahrain. (AP Photo/Hasan Jamali, File)

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 four per cent 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 per cent to US$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.

“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 per cent of its annual revenue in 2025.

SLB’s net income fell 5.6 per cent 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 seven-to-nine 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’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)