What triggered the pressure: Halliburton Company (NYSE: HAL) stock fell over 5.7% on January 22nd, 2019 (as of 11:23 am GMT-5; Source: Google finance). The revenue from North America fell about 2 percent to $3.3 billion from a year earlier and dropped 11 percent from the third quarter. The clients in North America, which is Halliburton’s biggest market by revenue, began pulling back on some drilling services last year amid transportation bottlenecks in the largest U.S. production region and after oil prices slid sharply in the fourth quarter. However, International revenue rose to $2.6 billion from $2.5 billion from a year earlier. It rose 7 percent from the third quarter.
HAL in the fourth quarter of FY 18 has reported the adjusted earnings per share of 41 cents. HAL’s total revenue in the fourth quarter of 2018 was $5.9 billion, which is a 4% decline from revenue of $6.2 billion in the third quarter of 2018. Operating income was $608 million during the fourth quarter of 2018, which is a 15% decrease compared to operating income of $716 million in the third quarter of 2018.
Segment performance: Drilling and Evaluation revenue in the fourth quarter of 2018 was $2.1 billion, which is an increase of $102 million, or 5%, when compared to the third quarter of 2018, while operating income was $185 million, a sequential increase of $4 million, or 2%. These increases were primarily on the back of year-end software sales, increased fluids activity in the Gulf of Mexico, and improved project management activity in Latin America. These improvements were partially offset by reduced drilling activity in the Western Hemisphere.
Pipeline: Meanwhile, Halliburton has signed two contracts with Eni Iraq BV (Eni) to provide integrated drilling services at Eni’s Zubair Oil Field in Southern Iraq. Under the contracts, Halliburton will mobilize four to six rigs to drill development wells over the next two years. In December 2018, Halliburton has acquired SmartFibres, an industry leader in the development, design and manufacturing of downhole fiber optic pressure gauges
The number of active hydraulic fracturing fleets in the Permian basin fell to 140 in January, versus 192 in June of 2018, a 27 percent decline, according to data from consultancy Primary Vision.