SLB first-quarter profit declines amid Middle East war disruptions
Updated
Updated · The Wall Street Journal · Apr 24
SLB first-quarter profit declines amid Middle East war disruptions
13 articles · Updated · The Wall Street Journal · Apr 24
SLB reported a Q1 profit of $752 million, or 50 cents per share, down from $797 million last year, as conflict forced operational demobilization in several Middle Eastern countries.
Revenue rose 2.7% to $8.72 billion, with North American revenue surging 26% but international revenue falling 3.8%. Shares dropped 3.7% in premarket trading following the earnings release.
CEO Olivier Le Peuch highlighted accelerated energy market rebalancing and supply chain vulnerabilities, projecting increased investment in exploration and resource development, with a broad-based upstream market recovery expected in 2027 and 2028.
Can SLB's North American boom truly offset its massive international losses?
Is SLB's optimistic 2027 recovery timeline realistic given the extensive market chaos?
After $58 billion in damages, how long until Gulf energy infrastructure is rebuilt?
With conflicting forecasts of shortages and surpluses, will oil prices soar or crash?
Beyond oil, how will global tech sectors survive the critical 'minerals crunch'?
Which US firms are positioned to win the massive Gulf reconstruction contracts?
SLB Faces 10% Middle East Revenue Drop Amid Strait of Hormuz Closure and Q1 2026 Operational Shutdowns
Overview
In Q1 2026, the U.S.-Israeli military campaign against Iran and the closure of the Strait of Hormuz forced SLB to halt operations and demobilize personnel in the Middle East, causing a 10% revenue drop in the region and a 6% decline in key service lines. These disruptions led to higher operational costs and a sharp margin contraction, projecting a $0.06 to $0.09 EPS impact in Q2. In response, SLB accelerated its technology pivot, expanding AI capabilities and shifting investments toward North America and Latin America to reduce geopolitical risk. Despite challenges, SLB’s strategic adaptation and digital growth position it for resilience amid ongoing instability and future industry recovery.