Shares of oilfield firm Halliburton Co fell sharply yesterday after the company forecast lower revenues in key business areas next quarter, overshadowing a quarterly profit beat and a pledge to reduce 2019 spending.
\nClients in North America, Halliburton\u2019s biggest market by revenue, began pulling back on some drilling services last year amid transportation bottlenecks in the largest US production region and after oil prices slid sharply in the fourth quarter.
\nAn oil glut and concerns about a global economic slowdown have pushed US crude futures down about 30% since October to around $53 a barrel.
\nThe company anticipates mid- to high-single digit revenue declines in its Completion and Production and its Drilling and Evaluation divisions next quarter.
\nHalliburton said it will reduce its 2019 capital spending budget by nearly 20% to $1.6bn.
\nFurther reductions could be made if market conditions erode, executives said on the company\u2019s fourth quarter earnings call.
\nAlthough Halliburton beat profit expectations, Wall Street analysts questioned chief executive officer Jeff Miller during the call on the lack of investor returns from the oilfield service sector, which has struggled to recover from the 2014 downturn in oil prices.
\nHalliburton\u2019s share price in December fell to its lowest level since 2010, trading under $25.
\nHouston-based Halliburton said revenue from North America fell about 2% to $3.3bn from a year earlier and dropped 11% from the third quarter.
\nInternational revenue rose to $2.6bn from $2.5bn from a year earlier.
\nIt rose 7% from the third quarter.
\n\u201cIn North America, the demand for completions services decreased during the fourth quarter, leading to lower pricing for hydraulic fracturing services,\u201d Miller said in a statement.
\nThe number of active hydraulic fracturing fleets in the Permian basin fell to 140 in January, versus 192 in June of 2018, a 27% decline, according to data from consultancy Primary Vision.
\nHalliburton\u2019s international business \u201ccontinues to show signs of a steady recovery,\u201d Miller added.
\nThe company saw an increase in demand for services in Argentina, which help offset some lower activity in North America.
\nHalliburton said net income attributable to the company was $664mn, or 76 cents per share, for the fourth quarter ended December 31, compared with a loss of $824mn or 94 cents per share, a year earlier.
\nExcluding one-time items, the company earned 41 cents per share, beating analysts\u2019 estimates of 37 cents per share, according to IBES data from Refinitiv.
\nFourth-quarter revenue was largely flat at $5.94bn.<\/p>\n","protected":false},"excerpt":{"rendered":"
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