SLB to Pass Costs Amid Iran War Supply Chain Issues
TrustFinance Global Insights
4月 28, 2026
2 min read
56
SLB Reports Profit Decline and Plans Cost Recovery
Oilfield services leader SLB announced it is seeking to recover higher operational costs from customers following significant supply chain disruptions caused by the conflict in the Middle East. The company reported a 5.6% drop in first-quarter net income to $752 million.
Middle East Disruptions Impact Revenue
The effective closure of the Strait of Hormuz, a critical energy chokepoint, has led to increased logistics, transportation, and raw material costs for SLB. This geopolitical tension directly impacted its largest market, causing a 10% revenue decline from the Middle East and Asia to $2.69 billion. CEO Olivier Le Peuch described it as a challenging start to the year.
Earnings Forecast and Sector Challenges
SLB anticipates the conflict will negatively impact its current-quarter earnings by 6-8 cents per share. Competitors like Halliburton and Baker Hughes have issued similar warnings. However, analysts note that higher oil prices are supporting demand in other regions, and future post-war repair work could generate significant business.
Summary and Future Outlook
While facing immediate headwinds in the Middle East, SLB expects growth from increased investment in North America and Latin America. The company's strategy focuses on offsetting regional disruptions by capitalizing on opportunities in less affected international markets.
**FAQ**
**Q:** Why did SLB's first-quarter profit fall?
**A:** Profits fell due to increased operational costs from supply chain disruptions caused by the conflict involving Iran, which particularly impacted its Middle East operations.
**Q:** How is SLB addressing the rising costs?
**A:** The company is looking to pass on the higher costs to its customers to mitigate the financial impact.
Source: Investing.com
Written by
TrustFinance Global Insights
AI-assisted editorial team by TrustFinance curating reliable financial and economic news from verified global sources.
Tags:
Best pick of the Week
Related Articles
