In a statement that mirrors the cautious tones expressed by other oilfield services giants, SLB (formerly Schlumberger) presented a subdued forecast for its revenue growth for the remainder of the year, amid ongoing economic uncertainty impacting the global oil and gas industry. Speaking to analysts during the company’s quarterly earnings call, Chief Executive Officer Olivier Le Peuch indicated that SLB anticipates flat sequential revenue growth in the second quarter of 2025, excluding any additional contributions from the pending ChampionX merger.
Le Peuch further elaborated that revenue for the second half of the year is projected to experience “flat to mid-single-digit” growth, contingent largely on a seasonal uptick in operational activities and increased demand for digital and data center solutions. Despite efforts to expand in these higher-margin areas, the broader market challenges are tempering the company’s growth expectations.
SLB reported a 9% decline in first-quarter profits, primarily driven by a 5% drop in international revenues. Both total revenue and earnings narrowly missed analyst expectations, according to research by TD Cowen. “It has been a soft start to the year,” Le Peuch admitted, highlighting the broader turbulence facing the industry.
This cautionary note comes on the heels of similar warnings from peers: Baker Hughes revealed that ongoing tariffs could cost the company as much as $200 million in 2025, while Halliburton flagged a potential decline in free cash flow, estimated at 2 to 3 cents per share, in the upcoming quarter due to the escalating trade tensions. Together, these developments paint a picture of an industry grappling with geopolitical and economic headwinds that continue to cloud its short-term prospects.