Updated version: 3-SLB boosted by Middle Eastern market recovery, signaling stronger performance in 2027, with results exceeding expectations

The article includes detailed content from the earnings call

Sumit Saha

Reuters, October 23 - SLB (SLB.N) reported third-quarter profit on Friday that beat Wall Street estimates, driven by strong growth in demand for its oilfield equipment in North America. The company also said the outlook for 2027 was optimistic as operations in the Middle East gradually recover from disruptions caused by conflict.

The share price of the world’s largest oilfield services provider soared about 7%.

SLB CEO Olivier Le Peuch said on the earnings call that clients are increasingly shifting investments towards optimizing production and boosting recovery at existing assets, and that resolving operational disruptions in the Middle East due to conflict could provide an extra boost next year.

Earlier this week, rival Halliburton (HAL.N) cited Middle East market recovery and inventory restocking efforts as factors for projecting mid-single-digit revenue growth for 2027.

In the third quarter, SLB’s revenue from the Middle East and Asia rose 9% quarter-on-quarter to $2.81 billion, though it was down 6% year-over-year.

The company said that despite operational disruptions re-emerging in certain countries in the final weeks of the quarter, business activity improved in Iraq, Kuwait, Oman, Saudi Arabia, Qatar, and the United Arab Emirates.

The Middle East is SLB’s largest market, accounting for 34% of total revenue in 2025.

SLB expects fourth-quarter revenue in the Middle East to be flat with the third quarter, with total revenue around $10 billion, representing a 5% to 7% quarter-on-quarter increase.

According to LSEG data, adjusted earnings per share for the third quarter were 64 cents, above analyst expectations of 62 cents.

The better-than-expected results were mainly driven by increased oil and gas drilling activity in North America, where quarterly revenue surged 24% to $2.4 billion.

Le Peuch said revenue in Venezuela is expected to more than double this year as international operators step up investments, and may even multiply several-fold by 2027.

Reuters reported in August that SLB signed a contract with Venezuelan state oil company PDVSA (link) allowing the US company to access oilfield data in Venezuela—the country with the world’s largest crude oil reserves.

Total third-quarter revenue reached $9.45 billion, exceeding the $9.28 billion expected.

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