Baker Hughes Earnings Slump as Iran War Disrupts Oilfield Operations

Baker Hughes reported a fall in third-quarter profit on Tuesday, as prolonged conflict in the Middle East hit demand for services and equipment in the key oil-producing region.

Repeated flare-ups in the Middle East conflict, now in its eighth month, have squeezed margins for the oilfield services sector amid delays in project decisions, disrupted activity and concerns over the pace of future spending by customers.

Baker Hughes derives nearly 40% of its revenue from the Middle East. It has the biggest exposure to the region among oilfield services rivals SLB SLB.N and Halliburton HAL.N.

The sector is also grappling with muted demand as producers adopt more efficient extraction technologies and ample crude and natural gas supplies curb the need for new drilling.

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