By Sumit Saha
Oct 23 (Reuters) – SLB on Friday beat Wall Street estimates for third-quarter profit on strong demand for its oilfield equipment in North America and signaled an upbeat 2027 as Middle East activity recovers following conflict-related disruptions.
Shares of the world’s largest oilfield services provider jumped about 7%.
Customers are increasingly shifting investment toward production optimization and enhanced recovery from existing assets, while a resolution of conflict-related disruptions in the Middle East could provide an additional boost next year, SLB CEO Olivier Le Peuch said in a post-earnings call.
Earlier this week, rival Halliburton forecast mid-single-digit revenue growth in 2027, citing Middle East recovery and inventory rebuilding efforts.
SLB’s revenue from the Middle East and Asia rose 9% sequentially to $2.81 billion in the third quarter, even as it was down 6% from a year earlier.
Activity improved in Iraq, Kuwait, Oman, Saudi Arabia, Qatar and the United Arab Emirates, although certain countries experienced renewed disruptions during the final weeks of the quarter, the company said.
The Middle East is SLB’s biggest market, accounting for 34% of total revenue in 2025.
SLB expects Middle East revenue in the fourth quarter to be flat from the third and total revenue of about $10 billion, up 5%-7% sequentially.
The company posted adjusted third-quarter profit of 64 cents per share, beating analysts’ estimate of 62 cents, according to LSEG data.
The beat was driven by increased oil and gas drilling activity in North America, where quarterly revenue jumped 24% to $2.40 billion.
Le Peuch said revenue in Venezuela is on track to more than double this year and could see multifold growth in 2027 as international operators ramp up investments.
In August, Reuters reported that SLB and Venezuela’s state-run PDVSA had signed a contract that granted the US company access to oilfield data from the country with the world’s largest crude reserves.
Total revenue in the third quarter came in at $9.45 billion, topping estimates of $9.28 billion.
(Reporting by Sumit Saha, Additional Reporting by Anushree Mukherjee in Bengaluru; Editing by Sriraj Kalluvila)
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