Halliburton reported lower first-quarter profit on Tuesday, as a slowdown in North American drilling activity weighed on demand and the oilfield services provider recorded a $356 million pre-tax charge.
The company’s shares fell 4% in premarket trading following the results.
Halliburton is the first of the Big Three U.S. oilfield services provider to report earnings as the sector braces for the impact of President Donald Trump’s tariffs that are expected to disrupt supply chains and drive up the cost of equipment such as drilling rigs and well casings from duties on steel imports.
Oilfield services firms have been struggling in North America due to reduced U.S. shale activity, with operators cutting drilling budgets and focusing on capital discipline, leading to lower demand and fewer rigs in operation.
Halliburton said North America revenue in first-quarter was $2.2 billion, a 12% decrease from a year earlier.
The company’s international operations helped cushion the impact from the sluggish demand in North America, led by a 6% year-on-year revenue increase in the Middle East and Asia.
“Our first quarter international tender activity was strong, Halliburton won meaningful integrated offshore work extending through 2026 and beyond,” said CEO Jeff Miller said in a statement.
Revenue from Europe and Africa also rose.
Overall, Halliburton reported first-quarter revenue of $5.42 billion, beating analysts’ average estimate of $5.28 billion, according to data compiled by LSEG.
The Houston-based company posted a profit of $204 million, or 24 cents per share, in the three months ended March 31, lower than $606 million, or 68 cents per share, it posted last year.
The charges included severance costs of $107 million, the company said.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)