Rising Costs, Gulf Shipping Disruptions Compress Oil Service Companies Margins

Rising costs and shipping disruptions are squeezing oilfield service and engineering companies margins.
The firms are facing sharply higher operating costs across the Middle East as the conflict involving Iran disrupts equipment deliveries, increases transportation expenses, and complicates the execution of energy infrastructure projects, according to industry executives speaking Tuesday in Abu Dhabi.
Executives from Italian engineering groups Maire and Saipem, along with National Energy Services Reunited (NESR), described significant increases in logistics, fuel, labor, and insurance expenses as the conflict enters its ninth month.
Alessandro Bernini, chief executive of Maire, said...