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SLB (NYSE:SLB) reassured investors by affirming its financial guidance for the full year of 2024. The company also expressed confidence in “significant growth for 2024” in Saudi Arabia.
Despite a challenging day with SLB (SLB) shares closing -7.2% in regular trading, the company’s outlook for Saudi Arabia remains positive despite recent market volatility. Concerns arose after the government halted Saudi Aramco’s plans for expanding its oil production capacity, leading to apprehensions about a potential shift in the country’s global oil demand perspective and reduced capital investment.
In response, SLB (SLB) stated, “We continue to work very closely with Saudi Aramco, and our understanding is that all ongoing oil and gas projects remain intact and that only two offshore oil increment projects not yet started will be suspended.”
Explaining its stance on the situation, the company further added, “The combination of our revenue mix in the Kingdom, which is weighted toward onshore and the expanding gas market, and our unique market position in other countries in the Middle East will continue to support the multi-year growth cycle in the region.”
