Halliburton's Strong International Performance Lifts Q1 Revenue Amid North American Challenges

Halliburton Company HAL reported first-quarter 2024 revenue growth of 2.2% year-over-year to $5.804 billion, beating the consensus of $5.668 billion.

Completion and Production revenue was $3.4 billion, slightly down from 2023. Operating income rose 3% to $688 million, fueled by diverse global service improvements and higher product sales.

Drilling and Evaluation revenue rose 7% to $2.4 billion, with operating income up 8% at $398 million, driven by increased drilling services in the Middle East and North America despite some regional drops.

HAL’s North America revenue fell 8% to $2.5 billion due to decreased U.S. pressure pumping and regional wireline activity.

International revenue was $3.3 billion, an increase of 12% YoY, with revenue from Latin America +21%, Europe/Africa +10% and Middle East/Asia +6%.

Total operating income rose 1% to $987 million, and margin contracted by 20 bps to 17%.

The company repurchased ~$250 million of its common stock during the quarter.

Adjusted EPS was $0.76, beating the consensus of $0.74.

Operating cash flow stood at $487 million for the quarter compared to $122 million a year ago, and free cash flow was $206 million.

“Activity in North America recovered from fourth-quarter lows, and our international business delivered its 11th consecutive quarter of year-on-year growth. Our customers’ multi-year activity plans across markets and asset types confirms my confidence in the strength and duration of this upcycle,” commented Jeff Miller, Chairman, President, and CEO.

In its conference call, Halliburton said it expects 2024 revenue growth in the low double digits.

Price Action: HAL shares are trading lower by 0.10% at $38.68 at the last check Tuesday.

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