Adds details from call.
Oilfield services giant Halliburton said it is working to mitigate the impact of tariffs, but still expects to take a 2-3¢/share hit on its second quarter profits.
About 60pc of the tariff impact will fall on Halliburton's completions and productions unit, which includes its hydraulic fracturing business, while the rest will affect the drilling and evaluation operation.
The company said it has a well-diversified supply chain and can pull other levels to mitigate the effect of tariffs.
"We need a bit more clarity and stability in the structure of tariffs so that we can really understand what levers we can pull and then what the overall outcome is going to be," chief financial officer Eric Carre told analysts today after Halliburton posted first quarter results.
Quizzed about the market turmoil resulting from US president Donald Trump's growing trade wars, the company said customers are still digesting how their operations will be affected.
"From our perspective anyway, the market's not building new equipment," said chief executive officer Jeff Miller, helping to avoid the risk of an oversupply seen in past cycles.
Moreover, US upstream companies are more "biased to working through things" than in the past, he added, echoing comments from Liberty Energy last week that the industry is better placed to withstand a downturn than in the recent past given a focus on capital restraint rather than growth at any cost.
Halliburton recognized there is more uncertainty now than there was three months ago. However, its international business reported a "solid start" to 2025, with significant contract awards.
Even as the market slows in North America, Halliburton aims to outperform rivals by driving technology gains and improving the quality of its services.
"Many of our customers are in the midst of evaluating their activity scenarios and plans for 2025," said Miller. "Activity reductions could mean higher than normal white space for committed fleets, and in some cases, the retirement or export of fleets to international markets."
International revenue this year is expected to be flat to slightly down compared with 2024, given increased risks to the outlook.
Miller struck an upbeat tone in discussing the industry's long-term prospects, despite tariffs and the earlier return of Opec+ barrels, both of which have weighed on oil prices. Demand is at record levels and fossil fuels will play a key role in meeting future energy demand.
"Decline curves are real, and in many basins significant, and adequate supplies today do not guarantee adequate supplies tomorrow without ongoing investment," Miller warned. "Our technology will continue to transform the industry and it will unlock new sources of value for us and our customers."
1Q profit, revenue down
Profit of $204mn in the first quarter was down from $606mn in the same three months of 2024. Revenue slipped to $5.4bn from $5.8bn.
North America revenue fell by 12pc to $2.2bn, largely because of lower stimulation activity in US land as well as a decline in completion tool sales in the Gulf of Mexico.
International sales dipped by 2pc to $3.2bn, with Latin America revenue falling 19pc because of a slowdown in Mexico. However, revenue grew in Europe, Africa, the Middle East and Asia.
The company also reported a pre-tax charge of $356mn from employeeseverance costs and an impairment of assets held for sale.
Halliburton is the first of the top oilfield services firms to release results. Baker Hughes will follow later on Tuesday, and SLB at the end of the week.
