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SLB (NYSE:SLB) said post-market on Tuesday it is reaffirming FY 2024 financial guidance and that its forecast for “significant growth for 2024” in Saudi Arabia remains intact.
SLB (SLB) shares closed -7.2% in regular trading after Saudi Aramco was ordered by the government to stop plans to expand its oil production capacity, sparking concerns that the decision could reflect a change in Saudi Arabia’s outlook for global oil demand and be followed by reduced capital investment.
“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,” SLB (SLB) said.
“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,” the company said.