Schlumberger Warns of $0.06–$0.09 EPS Hit from Hormuz Blockade Disruption
Schlumberger expects a $0.06 to $0.09 per-share hit to first-quarter earnings as the Strait of Hormuz blockade halts flows in Iraq, Qatar and Kuwait. The region represents about 15% of its revenue and the share price has declined roughly 6% since late February.
1. First-Quarter EPS Reduction
Schlumberger forecasts a $0.06 to $0.09 per-share reduction in first-quarter earnings, driven by halted flows in the Strait of Hormuz.
2. Gulf Region Disruption
Production stoppages in Iraq, Qatar and Kuwait have triggered rapid storage accumulation and increased logistics costs, while Saudi Arabia and UAE impacts remain limited.
3. Revenue Exposure and Price Reaction
The Middle East accounts for approximately 15% of revenues and the share price has fallen about 6% since late February as the blockade intensified.
4. Analyst Outlook
Despite the earnings headwind, analysts remain overweight on the stock, viewing the recent decline as a potential buying opportunity if regional tensions ease.