Schlumberger (SLB.US) Q2 profit fell 26% year over year, still better than expected North American revenue soared 36% to mitigate the geographical impact of the Middle East

The Zhitong Finance App learned that the second-quarter profit of the leading US oilfield service company Schlumberger (SLB.US) exceeded market expectations, and strong performance in major markets mitigated the impact of the turbulent situation in the Middle East. According to Schlumberger's earnings report released on Friday, second-quarter revenue reached 8.97 billion US dollars, up 5% year on year, better than market expectations; adjusted earnings per share were 0.55 US dollars, down 26% year on year, still better than market expectations of 0.51 US dollars.

The conflict between the US and Iran has been going on for nearly five months, and geopolitical haze continues to loom over the core oil-producing region of the Middle East. The Middle East is Schlumberger's largest market, accounting for 34% of its total revenue in 2025. The company had warned that second-quarter earnings per share would fall by 6 to 8 cents due to market disruptions.

According to Schlumberger's earnings report, the Middle East and Asia region's revenue for the second quarter was US$2.57 billion, down 14% year on year and 4% month on month. Among them, revenue from the Middle East region fell 13% month on month.

Revenue in North America was US$2.24 billion, up 36% year over year and 4% month on month.

Olivier Le Peuch, CEO of Schlumberger, said that the company achieved steady results in the second quarter, thanks to widespread and continuous growth in international markets such as Latin America, Europe, Africa and Asia, which significantly offset the impact of continued turbulence in the Middle East region.

“Importantly, revenue outside the Middle East resumed year-on-year growth this quarter, which further confirms our view that the industry has a favorable investment environment. “This growth is due to increased customer emphasis on energy security, supply diversification and capacity expansion,” said Le Peuch.

Schlumberger is the second major oil service company to announce results this week. Earlier, Halliburton (HAL.US) announced mixed results for the second quarter. The North American business grew but failed to offset the geographical shock in the Middle East, and its adjusted operating profit fell short of expectations. Baker Hughes (BKR.US) will announce results on Sunday.

April to June was the first full quarter after the escalation of the war between the US and Israel against Iran, and production in many countries, including Iraq, Qatar, and Kuwait, was restricted or completely stopped. The market previously anticipated that Schlumberger would report a 31% decline in earnings per share, the biggest drop since the fourth quarter of 2020; Baker Hughes' earnings per share were expected to fall 21%. The two companies have significant business exposure in the Middle East.

As of press release, Schlumberger shares were up 3.8% before the market, while Halliburton and Baker Hughes were up 0.6%.