Halliburton slides on North America weakness; sees sharp full-year revenue drop

Halliburton (NYSE:HAL) -5.3% in Friday’s trading after posting Q2 adjusted earnings in line with Wall Street estimates, while revenues came in roughly flat from a year ago because of weakness in its North America business.

Q2 net income rose to $709M, or $0.80/share, from $610M, or $0.68/share, in the year-earlier quarter, while revenue ticked up by less than 1% Y/Y to $5.83B from $5.8B a year ago, but North America revenue fell 3% to $2.5B, hurt by a drop in pressure pumping services in its U.S. land business and lower customer activity in the Gulf of Mexico; international revenues rose 3% to $3.4B.

Halliburton (HAL) now expects to see ~10% revenue growth in its international business for the full year, while revenues in the North American business likely will drop 6%-8% due to the lower activity, CEO Jeff Miller said on the company’s earnings conference call.

The CEO said he foresees H2 2024 results “near the low point of activity levels this cycle” in North America, although it is too early to give specific guidance for 2025, activity in the region should be “directionally higher” than H2 once exploration and production companies complete acquisitions and establish new development plans.

Meanwhile, oilfield services rival SLB (SLB), which obtains more than 80% of its revenues from international markets, trades +1.7% after reporting better than expected Q2 adjusted earnings and 13% higher revenues to $9.14B.

SLB (SLB) said Q2 North America revenues slipped 6% Y/Y to $1.44B but international segment sales jumped 18% to $7.45B.

For the full year, the company said it expects full-year growth in adjusted EBITDA of 14%-15%, with margins at or above 25%.