Schlumberger’s current-quarter results are likely to be hurt by the ongoing Russia-Ukraine conflict, its CEO said on March 8, as Moscow accounts for about 5% of the oilfield services company’s global revenue.

Crude prices have surged since the beginning of March on worries over the invasion of Ukraine and as the U.S. and other countries imposed more sanctions designed to cripple the Russian economy. That has upended the energy markets, as Russia is the largest exporter of crude and fuel products combined in the world.

Schlumberger said the hit to first-quarter results will largely be limited to the effects of the depreciation of the rouble, which lost around a third of its value last week, following the sanctions.

“[The] recent events will exacerbate an already tightly supplied oil and gas market. This will likely require increased global investment across geographies to ensure the security of the world's energy supply,” said CEO Le Peuch.

The company expects its first-quarter global revenue growth to be in the low-to-mid-teens percentage, Le Peuch said. Schlumberger reported international revenue of $4.21 billion last year.

Schlumberger said persistent global supply and logistics constraints are resulting in lower-than-expected product deliveries, which will have an impact on the current quarter.

Investment firm Evercore ISI on March 8 lowered its first-quarter earnings estimate for Schlumberger by 4 cents to 33 cents per share.

Although its Russian business will take a hit, Schlumberger told analysts with Evercore that it anticipates global spending on oil and gas activities to increase.

Its pre-tax segment operating margin in the quarter is expected to expand by about 150 to 200 basis points year-on-year, while its adjusted EBITDA margin is expected to increase about 50 to 100 basis points year-on-year.