Halliburton reports decline in North American drilling demand and raises concerns over potential tariffs.

Halliburton Company, a notable player in the oil and gas industry, has reported a decrease in profit for the first quarter, primarily attributed to a slowdown in drilling activities within North America. This decline has notably led to diminished demand for the company’s oilfield services and equipment. As Halliburton prepares for the second quarter, it has issued warnings regarding potential earnings impacts stemming from tariffs and reduced activity levels in the North American oilfields.

Hailing from Houston, Texas, Halliburton underscored the significance of current market conditions affected by fluctuating oil prices, which have recently settled below per barrel. Industry analysts suggest that many companies—including Halliburton—struggle to maintain profitability when oil prices dip below the threshold, which in turn could negatively affect equipment demand and operational services. In its earnings report, Halliburton reported North American revenues of .2 billion, reflecting a 12 percent decline from the same period last year.

Jeff Miller, the Chief Executive Officer of Halliburton, noted that many of the company’s customers are currently assessing their operational strategies amid the prevailing economic climate. He emphasized that potential reductions in planned activities for 2025 may lead to significant idle time for committed equipment fleets and could prompt the export or retirement of fleets to international markets.

Halliburton’s share price reflected the current market apprehensions, decreasing by approximately 6 percent to .62 per share. The company also projects a potential impact on second-quarter earnings, forecasting a decline of 2 to 3 cents per share due to ongoing trade tensions. Year-to-date, Halliburton’s shares have experienced a notable drop of 24 percent, in comparison to a lesser decline of 11 percent for competitor Schlumberger.

In addition, Halliburton’s international revenues saw a minor decline of 2 percent, primarily due to reduced drilling and project management activities in Mexico. The Mexican government is moving forward with new contract models aimed at revitalizing the oil sector, grappling with substantial debts owed to service providers. Meanwhile, the state-owned oil company Pemex has reported a decrease in oil production, which underscores the challenges faced within the region.

Despite the overall decline in profit—declaring a net income of 4 million, or 24 cents per share—Halliburton’s revenue of .42 billion surpassed analyst expectations, which were approximated at .28 billion. Excluding certain charges, the company achieved earnings in line with financial forecasts. As Halliburton navigates these turbulent times, its robust presence within the global energy market remains pivotal.

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