Halliburton Reports Solid Q1 Earnings on International Demand
Halliburton Company (NYSE: HAL) exceeded market expectations for adjusted earnings in the first quarter of 2024. The company, a leading provider of oilfield services, attributed the favorable results to increasing international demand for its offerings.
Halliburton’s adjusted net income for the quarter reached $679 million, or $0.76 per diluted share, surpassing the analyst consensus estimate of $0.74 EPS. Total revenue climbed by 2% year-over-year to $5.8 billion, driven by strong international revenue. International revenue surged by 12% to $3.3 billion, as demand for oilfield services increased in major markets, including the Middle East, Europe, and Latin America.
In North America, however, revenue declined by 8% to $2.5 billion due to reduced pressure pumping services in shale basins and lower wireline activity. This decline was partly compensated by increased drilling-related services in the Gulf of Mexico.
Jeff Miller, Halliburton’s Chairman, President, and CEO, highlighted the company’s optimism for the future. He noted that activity in North America has rebounded from the previous quarter’s lows, while the international business has delivered 11 consecutive quarters of year-on-year growth.
This upbeat outlook aligns with last week’s earnings report from SLB, the world’s largest oilfield services provider. SLB reported a 14% increase in net income, driven by robust international drilling demand that outweighed a weaker North American market.
The positive market fundamentals in the oil and gas industry are expected to continue supporting activity levels, particularly in international and offshore markets. This aligns well with the core strengths of Halliburton and other industry leaders.
