Oil Servicer Weatherford Warns of Deepening Disruptions from Global Conflict in Q2

Weatherford International Warns of Earnings Hit from Iran War

Weatherford International Plc., one of the world's largest oilfield-service providers, is bracing for a prolonged earnings downturn due to the ongoing Iran war. According to Chief Executive Officer Girish Saligram, the conflict will likely result in a hit to company profits of around $30 million to $50 million over the first half of the year. This projection is based on the assumption that oilfield activity will start to normalize by the end of the current quarter.

Weatherford posted first-quarter results that exceeded analyst estimates, with earnings-per-share topping expectations. However, the war's impact will become more apparent in the second quarter, as global energy shipments continue to face disruptions. The conflict has effectively halted the flow of oil and natural gas from the Persian Gulf, a significant blow to service providers that rely on the Middle East for growth.

Weatherford has been forced to pause operations in several countries, including Iraq, Qatar, and parts of Kuwait, due to the conflict. Additionally, the company is facing increased costs related to freight, jet fuel, and trucking expenses. Despite this, Weatherford sees potential for a rebound in the Middle East during the second half of the year, with a resolution to the conflict paving the way for nations to rebuild their damaged energy infrastructure.

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A growing need for increased energy security will also drive growth for Weatherford into 2027, according to Saligram. Some investors are willing to overlook the company's softer second-quarter guidance, with Scott Gruber, an analyst at Citigroup Global Markets Inc., noting that positive commentary on the second half of 2026 and 2027 could "neutralize the impact."

Weatherford's shares rose as much as 6.7% to $106.26 on Wednesday, the highest intraday level in over a month. The stock was up about 2% to $101.67 as of 11:26 a.m. in New York. Saligram expressed a candidly constructive outlook for the second half of 2026 and into 2027, stating that it is the most optimistic it has been since late 2023.

Comparison of Oilfield Service Providers' Second-Quarter Impact

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Note: The exact second-quarter impact for Halliburton Co. is not specified in the article.