SLB said it is seeking to recover higher costs from customers after the US-Israeli war on Iran and the effective closure of the Strait of Hormuz disrupted global supply chains.
Its shares were up 3.7 per cent.
The Strait of Hormuz is a key global energy chokepoint, and the top oilfield services provider said on Friday its closure raised logistics, transportation and raw material costs.
SLB reported a fall in first-quarter profit as disruptions from the Iran war forced it to rein in operations in a key oil-producing region. "It was a challenging start to the year, marked by widespread disruptions in the Middle East," CEO Olivier Le Peuch said on a call.
The impact was, "most pronounced in Qatar due to force majeure and the suspension of offshore operations, and in Iraq due to security conditions."
The Middle East is SLB's biggest market. During the quarter, revenue from the Middle East and Asia dropped 10 per cent to $2.69 billion.
Total net income fell 5.6 per cent to $752 million during the quarter.
The conflict is expected to hit SLB's current-quarter earnings by six-eight cents per share, though some of it could be offset by growth in other international markets.
Halliburton and Baker Hughes beat expectations for quarterly profit, though both rivals warned of near-term challenges due to the conflict, with Halliburton flagging a seven-to-nine cent hit to its current-quarter earnings per share.
However, analysts expect post-war repairs to generate demand for the sector, with the Big three oilfield services providers having the highest exposure to the Middle East. Rystad Energy has projected as much as $58 billion in repair costs.
Away from areas impacted by the war, higher oil prices are supporting demand for oilfield services, Morningstar DBRS analyst Andrew O'Connor said.
"In North America, field activity by nimbler small-to-mid-sized oil and gas producers is gradually increasing."
SLB's Le Peuch also expects increased investment in short-cycle projects in North America and Latin America, as well as long-cycle developments once the conflict subsides.
(Reporting by Vallari Srivastava, Arunima Kumar and Pooja Menon in Bengaluru, Arathy Somasekhar in Houston, Editing by Sriraj Kalluvila and Maju Samuel)
