SLB said its Middle East business is healing even with war-related interruptions, noting third quarter regional revenue climbed 13% from the prior period. The company pointed to stronger activity across Iraq, Kuwait, Oman, Saudi Arabia, Qatar and the United Arab Emirates as the engine behind that increase.
SLB, the Houston based firm formerly known as Schlumberger, reported adjusted earnings of 64 cents per share, topping the 62 cent average analyst call. In New York trading, the shares climbed up to 6% and ended the session leading the S&P 500 Energy Index.
SLB is widely viewed as a read on the health of oil and gas, with its global reach offering a window into sector spending. The company forecasts a quicker expansion in 2027 for shale-linked oilfield contractors as major US operators push into Venezuela and Argentina.
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"Energy security and supply shocks continue to drive a quest for international supply diversification, reserve replacement and sustained production - driving a distinct upcycle, despite near-term uncertainty in the Middle East," CEO Olivier Le Peuch said. "We see a very compelling outlook for 2027, with further upside as Middle East activity recovers."
On the call, Le Peuch said Venezuela will be a "significant growth driver," with revenue in the country expected to more than double by year end and expand further in 2027. The update came after Halliburton Co. said Tuesday it is seeing more work in Iraq, Saudi Arabia and Kuwait as the Iran war persists, and it projected higher fourth quarter revenue from the region. The region's rig count has increased for five straight months, a sign that supply snags may be loosening.
In plain English: a resilient Middle East, a ramp in Venezuela, and a 2027 upcycle signal sturdier global spend on upstream services. That tends to lift pricing and utilization for oilfield contractors, a setup worth tracking if energy exposure is on your radar.
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