Halliburton studies lowered North America drilling demand, warns of tariffs – INA NEWS

Halliburton has reported a decline in first-quarter revenue attributable to lowered drilling exercise in North America, which weakened demand for its oilfield providers and gear.

The Houston, Texas-based oil and gasoline large warned on Tuesday of a second-quarter earnings influence from tariffs and decrease oilfield exercise in North America as producers reckon with weak oil costs, sending shares of the oilfield service supplier down about 6 p.c.

The oilfield service sector worries United States President Donald Trump’s tariffs on imported metal and components will disrupt provide chains and drive up gear prices, equivalent to drilling rigs and properly casings. Halliburton mentioned its first-quarter North American income was $2.2bn, down 12 p.c from a 12 months earlier.

Halliburton is the primary of the large three US oilfield providers suppliers (Schlumberger and Baker Hughes are the opposite two) and is among the many first giant oil firms to report earnings as US crude costs hover below $64 a barrel. Many firms say they can not drill profitably if oil costs fall below $65 a barrel, denting demand for gear and providers supplied by firms like Halliburton.

“Lots of our clients are within the midst of evaluating their exercise eventualities, and plans for 2025 exercise reductions might imply larger than regular white house for dedicated fleets and in some instances the retirement or export of fleets to worldwide markets,” Halliburton Chief Government Jeff Miller mentioned about expectations in North American markets.

White areas confer with gaps within the calendar when the corporate doesn’t have work lined up for its gear.

Shares down

Halliburton shares had been down about 6 p.c at $20.62 a share after it forecast a 2-cent- to 3-cent-per-share influence within the second quarter from commerce tensions. Second-quarter earnings had been estimated to be 63 cents per share, in response to LSEG information. Shares had fallen as a lot as 10 p.c on Tuesday and had been down 24 p.c up to now this 12 months. Rival Schlumberger’s shares had been down solely 11 p.c this 12 months.

Halliburton’s Q1 worldwide income eased 2 p.c primarily attributable to decrease drilling and challenge administration exercise in Mexico. It forecast year-over-year worldwide income to be flat to barely down.

Mexico is proposing new contract fashions for the oil sector whereas struggling to repay billions of {dollars} of amassed debt to grease service firms. Within the meantime, state firm Pemex’s oil output has continued falling this 12 months to 1.62 million barrels per day, in contrast with 1.76 million barrels per day final 12 months.

Halliburton posted a revenue of $204m, or 24 cents per share, within the three months that ended on March 31, decrease than the $606m, or 68 cents per share, it had posted final 12 months.

The corporate additionally took a $107m severance price within the first quarter. That got here on the heels of a $63m severance cost within the third quarter of 2024 however the firm didn’t present extra particulars.

Excluding a $356m pre-tax cost, which included the severance cost, the corporate posted earnings of 60 cents, consistent with analysts’ estimates.

Income of $5.42bn beat analysts’ common estimate of $5.28bn.