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Monday, Oct 21
Halliburton shares slip after North American results disappoint
- Halliburton (HAL) -1.1% premarket despite a 17% Y/Y increase in Q3 earnings and a 5% boost in revenues.
- Q3 revenue rose 5% Y/Y to $7.47B due to a strong performance in its eastern hemisphere operations, where revenue rose 17% and operating income climbed 30% Y/Y, but North American revenue rose a tepid 1.6% and operating income gained 18%; North America contributes more than half of HAL revenues and ~60% of its profits, a larger share than competitors Baker Hughes (BHI) and Schlumberger (SLB).
- HAL says the U.S. land rig count remains sluggish, and oversupply of service capacity in North America continues to put pressure on pricing in a number of areas, but it expects margins to strengthen next year.