SLB (NYSE: SLB) shares faltered Wednesday, as the company continues to monitor the unfolding situation in the Middle East closely and adapt its operations.
The safety and security of SLB’s employees is the highest priority, and the company has activated local and regional crisis response teams that are meeting daily. Travel to and transit through the region have been suspended, and the company has begun to demobilize operations in a few countries in response to customer actions to safeguard personnel and facilities.
These measures will continue as long as necessary until the environment in the region has stabilized. SLB is working closely with local authorities and its customers to monitor the situation and will begin a phased resumption of full activity as conditions allow.
SLB revenue for the first quarter will be lower than expected, and the company expects to incur additional costs resulting in an impact of approximately six to nine cents of earnings per diluted share for the first quarter.
“Given the dynamic nature of the environment,” reads this morning’s news release, “these factors could change, and we will continue to closely monitor developments and their impact.
“Despite these near-term disruptions,” the release continues, “SLB remains confident in the underlying resilience of its global business, including the Middle East. The company has dealt with numerous geopolitical crises throughout its 100-year history and has deep experience navigating these challenges while remaining focused on serving its global customer base.
SLB shares faded 66 cents, or 1.4%, to $47.46.
