Schlumberger Pre-Announces $0.06-$0.09 Q1 EPS Shortfall, Suspends Middle East Operations
Schlumberger pre-announced a Q1 EPS shortfall of $0.06 to $0.09 after suspending personnel movement and scaling back its Middle East footprint. JPMorgan warns upstream spending cuts driven by the Iran conflict will pressure Schlumberger’s revenue and margins.
1. Pre-Announcement of Q1 Earnings Miss
Schlumberger notified investors that first-quarter EPS will undershoot prior guidance by $0.06 to $0.09, reflecting early visibility into spending disruptions tied to the Middle East conflict.
2. Operational Changes in Conflict Zone
The company halted all personnel movements into the conflict-affected region and reduced its operational footprint to mitigate security risks and exposure to volatile conditions.
3. Implications for Revenue and Margins
These suspensions are expected to curtail Q1 revenue and erode service margins as lower utilization and higher costs weigh on overall profitability.
4. Analyst Outlook
JPMorgan warns that Iran war–driven upstream capex cuts will unevenly impact oilfield service providers, suggesting continued pressure on Schlumberger’s top and bottom lines if regional tensions persist.