SLB’s Q1 profit drops due to Middle East conflict

Halliburton and Baker Hughes beat expectations for quarterly profit, though 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, analysts expect post-war repairs to generate demand for the sector, with the Big three oilfield services providers having the highest exposure to the Middle East. Rystad Energy has projected as much as $58 billion in repair costs.

Away from areas impacted by the war, higher oil prices are supporting demand for oilfield services, Morningstar DBRS analyst Andrew O’Connor said.