SLB warns that Middle East disruptions will impact first-quarter earnings

SLB, an oilfield services firm, said that escalating tensions in the Middle East would affect its first-quarter earnings and revenue by 6 to 9 cents. Energy companies are moving to protect their personnel and facilities throughout the region.

SLB's share price fell 2.3% during premarket trading.

The disruption is a sign of escalating geopolitical tensions that are beginning to affect the global oil and gas supply chain. This has forced?energy companies? and?service provider?s to reduce operations and evacuate their staff from parts of the Middle East.

Exxon Mobil announced on Tuesday that it has evacuated non essential staff from some Middle East operations due to the intensification of the conflict between Iran, U.S. and Israel.

SLB has announced that it is demobilizing its operations in some countries after customers began to protect staff and infrastructure due to rising tensions.

The company said that they have activated regional and local crisis response teams who meet daily. Travel to and transit through parts of the Middle East has been suspended. (Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel)

(source: Reuters)