SLB sees Q2 revenues, profit coming in flat

SLB (NYSE:SLB) -0.5% in Tuesday’s trading after CEO Olivier Le Peuch said the company expects Q2 revenues and core profit to come in roughly the same as Q1 due in part to weaker than expected drilling activity in Saudi Arabia and Latin America, Reuters reported.

In a Q2 operational update, the oilfield services company formerly called Schlumberger (NYSE:SLB) said it has seen activity contrast with its initial assumptions for the quarter, particularly the decline in Saudi Arabia, with several rigs demobilized and operations paused at the Jafurah unconventional gas field, and reduced short-cycle activity in Latin America.

“Barring any impact to activity in the Persian Gulf from the conflict, we still expect second-quarter revenue to be flattish sequentially,” Le Peuch said at the J.P. Morgan Energy, Power & Renewables Conference in New York, adding that SLB’s (SLB) plan to return at least $4B to shareholders in 2025 remains unchanged.

“The unfavorable geographical activity mix is impacting margins,” the CEO said, adding that SLB (SLB) also sees Q2 EBITDA coming in flat compared to Q1, down slightly from the company’s guidance issued during Q1.