Halliburton Beats Estimate on International Demand

Halliburton, the U.S. oilfield services firm, reported higher-than-expected quarterly earnings on the back of the increase in international demand. 

The company reported earnings of $0.32 per share compared to analysts’ average estimate of $0.29 per share. Although total revenue decreased 12.6%, the quarterly number of $5.19 billion is again higher than $5.10 billion expected by the market. 

Overall, Halliburton finished 2019 with the total company revenue of $22 billion and adjusted the operating income of $2.1 billion. The company reported $900 million of free cash flow for the full year.

As expected, the oilfield giant reported a $2.2 billion charge to earnings mostly due to lower North American shale activity. The charge isn’t seen as a surprise as Halliburton’s main competitors - Schlumberger and Chevron - reported charges of $12 billion and $10 billion respectively. 

During the investors call, Miller noted “significantly lower activity in US land”, while its international business grew 10%. 

The U.S. rig count has recorded a fall by 254, or roughly 24%, to 796 in the past year, which has had a strong impact on all oil companies in the United States. 

In 2019, Halliburton announced a decision to dismiss 8% of its staff in North America due to lower activity in this part of the world.