Schlumberger Seeing Greater Uncertainty, Mixed Regional Activity

Published: 2025-06-24 10:05:21 ET SLB

Published on 06/24/2025 at 10:05

By Denny Jacob

Schlumberger is facing high levels of uncertainty in the current quarter, prompting mixed activity in certain regions.

"Looking broadly across the energy markets, there has been a lot of uncertainty this quarter, including OPEC+ announcements, tariff negotiations and geopolitical escalations," said Chief Executive Olivier Le Peuch at an energy conference, according to a securities filing.

The oilfield-services company has seen activity contrast with its initial assumptions for the second quarter, most notably with a decline in Saudi Arabia. It's also seen a lower short-cycle activity in Latin America, whereas there's been pockets of growth across the Middle East and North Africa.

Schlumberger still expects second-quarter revenue to be flattish sequentially, pending any impact to activity in the Persian Gulf from the conflict that's playing out between Israel and Iran. A cease-fire between the two countries is currently in effect.

"The unfavorable geographical activity mix is impacting margins," said Le Peuch. He added that the company now expects earnings before interest, taxes, depreciation and amortization, in dollar terms, to also be flat sequentially, down slightly from its guidance issued in the first quarter.

Schlumberger said it's still committed to returning a minimum of $4 billion to shareholders in 2025.

Write to Denny Jacob at [email protected]

(END) Dow Jones Newswires

06-24-25 1004ET