Halliburton Company (HAL) announced its first-quarter 2024 financial results, showcasing a strong performance with revenue growth and earnings per share (EPS) exceeding analysts’ expectations.
The company reported revenue of $5.804 billion, representing a 2.2% increase year-over-year. This outpaced the consensus estimate of $5.668 billion. The growth was primarily driven by a 7% rise in Drilling and Evaluation revenue, fueled by increased drilling services in the Middle East and North America. Completion and Production revenue remained steady at $3.4 billion.
Halliburton’s operating income increased by 3% to $688 million, driven by diverse global service improvements and higher product sales. Total operating income rose by 1% to $987 million, with a slight margin contraction.
Geographically, Halliburton saw strong growth in its international operations, with revenue increasing by 12% year-over-year. Latin America (+21%), Europe/Africa (+10%), and the Middle East/Asia (+6%) all contributed to this growth. North America revenue, however, declined by 8% due to a decrease in U.S. pressure pumping and regional wireline activity.
The company also highlighted its solid financial position, with operating cash flow of $487 million and free cash flow of $206 million for the quarter. Halliburton repurchased approximately $250 million of its common stock during the period.
Commenting on the results, Jeff Miller, Chairman, President, and CEO of Halliburton, expressed confidence in the strength and duration of the current upcycle. He cited his customers’ multi-year activity plans across markets and asset types as a positive indicator.
In its conference call, Halliburton projected revenue growth in the low double digits for 2024. The company’s strong performance and positive outlook have been well-received by investors, resulting in a slight gain in share price during Tuesday’s trading session.
