Halliburton warns of tariff impact, lower North America oilfield activity

Core Viewpoint - Halliburton has warned of a potential earnings impact in the second quarter due to tariffs and reduced oilfield activity in North America, leading to a decline in its share price by approximately 6% [1][5]. Company Performance - Halliburton's shares fell to $20.62, reflecting a 6$204 million, or 24 cents per share, for the three months ending March 31, down from $606 million, or 68 cents per share, in the previous year [12]. - First-quarter revenue was$5.42 billion, surpassing analysts' average estimate of $5.28 billion [12]. - North America revenue decreased by 12$2.2 billion [7]. Market Conditions - U.S. crude prices are currently below $64 per barrel, with many companies indicating they cannot drill profitably if prices fall below$65, which negatively affects demand for Halliburton's services [2]. - The oilfield service sector is concerned that tariffs on imported steel and parts will disrupt supply chains and increase equipment costs [6]. Future Outlook - Halliburton's CEO noted that customers are evaluating their activity plans, which may lead to higher than normal white space for committed fleets and potential retirement or export of fleets to international markets [3]. - The company forecasts a 1% to 3% increase in revenue for its completion and production division in the second quarter, while drilling and evaluation division revenue is expected to be flat to down 2% [11]. - International revenue is projected to be flat to slightly down year-over-year, primarily due to reduced drilling and project management activity in Mexico [8].