Halliburton's Q1 Results Surpass Expectations

Halliburton Co HAL reported first-quarter FY22 revenue growth of 24.1% year-over-year to $4.28 billion, beating the consensus of $4.21 billion.
Completion and Production revenue increased 25.8% Y/Y to $2.35 billion, and the corresponding operating income increased by 17.5% Y/Y to $296 million.
Drilling and Evaluation revenue increased by 22.1% Y/Y to $1.93 billion, and operating income increased 71.9% Y/Y to $294 million.
Adjusted EPS improved to $0.35 from $0.19 in 1Q21, beating the consensus of $0.34.
The operating income increased to $511 million, compared to $370 million, and the margin expanded by 121 bps for the quarter to 11.9%. The adjusted operating margin was 12.4%.
Halliburton's cash used om operating activities for the quarter was $50 million, compared to cash generated of $203 million a year ago. Free cash outflow was $183 million.
The company held cash and equivalents of $2.15 billion as of March 31, 2022.
"We see significant tightness across the entire oil and gas value chain in North America. Supportive commodity prices and strengthening customer demand against an almost sold-out equipment market are expected to drive expansion in Completion and Production division margins," commented CEO Jeff Miller.
"I expect our strong international business to increase throughout the remainder of the year. First quarter revenue growth in all our international regions together with North America demonstrates that this multi-year upcycle is well underway," Miller added.
Price Action: HAL shares are trading lower by 2.76% at $40.49 during the premarket session on Tuesday.

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