HAL - Halliburton tops Q2 earnings estimates but North America sales slip

2023-07-19 07:54:39 ET

Halliburton ( NYSE: HAL ) -2.9% pre-market Wednesday after narrowly beating Q2 adjusted earnings estimates while revenues were in line, but North American revenues fell from the previous quarter.

Halliburton ( HAL ) reported Q2 net income jumped more than 5x to $610M, or $0.68/share, from $117M, or $0.12/share, in the year-earlier quarter, while revenues rose 14% from the previous year to $5.8B.

Q2 North America revenue fell 2% Q/Q to $2.7B, driven primarily by decreased stimulation activity in U.S. land drilling, which was partially offset by higher activity across multiple product service lines in the Gulf of Mexico.

Q2 International revenue increased 7% Q/Q to $3.1B, led by a 9% improvement in Latin America to $994M, where the company cited increased pressure pumping and improved wireline activity in Argentina and increased activity across multiple product service lines in Mexico.

By segment, Completion and Production revenue rose 2% Q/Q to $3.5B, driven by increased completion tool sales globally and higher artificial lift activity in North America, while Drilling and Evaluation revenue gained 2% to $2.3B, primarily due to an increase in fluid services globally, and higher drilling activity in the Western Hemisphere and Saudi Arabia.

Halliburton ( HAL ) said it generated $798M of free cash flow in Q2, which it said provided confidence in the ability to return more cash back to shareholders as evidenced by $248M of share repurchases in the quarter.

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