** Brokerage J.P. Morgan says Iran war is worsening outlook for oilfield services; flags hit to Baker Hughes BKR.O
** Says upstream spending has been reshaped, delivering headwinds to the industry
** Adds Baker Hughes BKR.O could see a $60 million revenue hit in its oilfield services & equipment (OFSE) sector in the first quarter
** Says as a result, 50%–60% of the revenue decline is expected to flow straight through to lower profit
** JPM anticipates continued Industrial & Energy Technology segment growth to offset OFSE headwinds
** Brokerage says Halliburton's HAL.N first-quarter outlook remains unchanged, reflecting a conservatively set outlook
** Brokerage adds North America looks safer from the conflict, but in practice operators are staying cautious and holding off on new activity until the situation becomes clear
** JPM cuts its second-half outlook across segments on the conflict overhang, as completion and production margins have compressed from 20.7% in 2023 to 16.6% in 2025 despite ongoing pricing recovery efforts
** "The key wild card for 2H26 earnings across our OFS coverage remains the integrity of critical energy infrastructure," - JP Morgan
(Reporting by Pranav Mathur in Bengaluru)
((Pranav.Mathur@thomsonreuters.com;))
Comments