SLB predicts flat revenue and profit for the quarter amid weaker activity across Saudi Arabia and Latin America

Olivier Le Peuch, CEO of oilfield services firm SLB, said that the company expects the second-quarter revenue to be similar to the first quarter because drilling activity is weaker in Saudi Arabia and Latin America. Speaking at the J.P. Morgan Energy, Power & Renewables Conference, the CEO said that the company's Saudi Arabian activity had decreased more than expected, as several rigs were demobilized, and operations at the Jafurah unconventional gas field have been paused. The company also reported that short-cycle work was down in Latin America, which contributed to a geographic mix of less favorable activity, affecting margins.

Oil prices

The price of the product dropped by 5%

On Tuesday, oil prices fell to their lowest level in two weeks on the expectation that the ceasefire agreement between Israel and Iran would reduce the risk of disruptions to the Middle East's oil supply.

Le Peuch stated that "barring any impact on activity in the Persian Gulf due to the conflict, we expect the second quarter revenue to be flattish."

SLB's goal to return at lease $4 billion in shareholder returns by 2025 is unchanged. (Reporting and editing by Sahal Muhammad and Cynthia Osterman in Bengaluru. Katha Kalia is based in Bengaluru.

(source: Reuters)