FINWIRES · TerminalLIVE
FINWIRES

Halliburton Q1 Results Hit by Weaker North America Activity

By

Oil and gas engineering services provider Halliburton (HAL) said Tuesday that completion and production revenue in Q1 2026 fell 3% or $104 million to $3 billion over the year, while operating income dropped 17% to $439 million.

The company said lower stimulation activity in North America, reduced completion tool sales and decreased pressure pumping services had a negative effect on Q1 revenues.

Those influences were partly offset by higher completion tool sales in the Western Hemisphere and increased pressure pumping services in Africa.

Drilling and evaluation revenue rose 4% or $89 million over the year to $2.4 billion, while operating income was flat at $351 million.

Results were positively influenced by higher project management activity in Latin America and higher demand for drilling-related services in Europe and the Western Hemisphere.

However, these gains were partially offset by lower activity in the Middle East, particularly in Saudi Arabia and Qatar, along with reduced wireline activity in the Eastern Hemisphere and a decline in fluid services in the Gulf of Mexico, the company said.

Middle East/Asia revenue in Q1 2026 declined 13% to $1.3 billion over the year.

The Iran conflict also impacted drilling and evaluation. "In the first quarter of 2026, the geopolitical conflict in the Middle East affected both divisions, with an impact of approximately 2 to 3 cents of net income per diluted share," according to the statement.

Price: $38.22, Change: $+1.55, Percent Change: +4.23%

Related Articles

Oil & Energy

US Oil Update: Crude Surges as Uncertainty Over US-Iran Talks Fuels Supply Fears

Crude oil futures climbed in after-hours trading on Monday as Iran signaled it may boycott upcoming peace talks in Pakistan, heightening fears that a fragile two-week ceasefire with the US will collapse when it expires on Tuesday.Front-month West Texas Intermediate crude futures jumped by 4.71% to $87.80 per barrel, while Brent futures rose 4.36% to $94.32/bbl.ING strategists said Iran's refusal to send its peace negotiating team to Pakistan opens the door to further escalation in the Arabian Gulf and higher oil and gas prices as the US-Iran ceasefire nears an end.Iran said its participation in the second round of peace talks with the US is subject to the fulfillment of certain preconditions, according to local media.Iran's Foreign Ministry spokesperson, Esmail Baghaei, said there are no plans for a second round of talks with the US, adding that Washington is not learning from experience and that this will not lead to good results, according to media reports."The United States' so-called 'blockade' of Iran's ports or coastline is not only a violation of the Pakistani-mediated ceasefire but also both unlawful and criminal," Baghaei said in a social media post on X.Fueling further uncertainty, the US negotiating team, which is expected to be led by Vice President JD Vance, has reportedly not yet departed for Pakistan, contradicting reports that it was already on its way to Islamabad for talks.On Monday, President Trump said, in a social media post, that he believed his administration's nuclear deal with Iran would be better than a 2015 international agreement reached after years of negotiations under the Obama administration.Meanwhile, the ongoing US-Iran standoff over the Hormuz threatens to deepen the global energy crisis. It is part of the unresolved issues, which include Iran's nuclear enrichment program and Israel's ongoing invasion of Lebanon.The ceasefire between the two sides appeared in jeopardy over the weekend after Washington said it had seized an Iranian cargo vessel that tried to run its blockade and Tehran vowed to retaliate."The US blockade of the Strait of Hormuz is of course blocking Iranian oil exports. But it is also an action of disruption directed towards Europe and Asia," said Bjarne Schieldrop, chief commodities analyst at SEB Research.The US Navy fired on an Iranian cargo vessel in the Gulf of Oman on Sunday. The Navy later seized the ship, accusing the container vessel of trying to break through its blockade as Iran warned it would retaliate, heightening fears of a resumption in hostilities.The seizure follows Iran's attack on commercial vessels in the Strait on Saturday, including a container ship belonging to France's CMA CGM and two Indian-flagged ships that were attempting to cross the strategic waterway.

Oil & Energy

US Biofuels Update: Markets Mixed as Soybean Prices Fall, Soybean Oil Rises on Geopolitical Risk

Biofuels feedstock futures closed mixed on Monday, as soybean futures dropped while soybean oil rose, both reacting to heightened tensions in the Middle East and the threat of a ceasefire expiring.The Chicago Board of Trade May soybean futures contract closed 0.13% lower on Friday at $11.65 per bushel, while the CBOT May soybean oil futures contract settled 2.16% higher at 69.63 cents per pound.On Friday, the May ethanol futures contract on the Nymex ended 0.39% lower at $1.89 per gallon.Rhett Montgomery, DTN analyst, said that it is unclear whether Iran has agreed to participate in any talks. In agricultural markets, energy influences were reflected in higher futures prices for corn, soybean oil, and canola. Meanwhile, escalation continues to be bearish for soybean futures."The soybean market traded mixed to begin the new week, initially pressured by a tense situation in the Middle East as well as reports that China is seeing less soybean imports in 2026-2027," Montgomery stated in a daily note.He added, "Soybean prices are likely to remain in a tight range, especially ahead of President Trump's visit to China in May, which will shed light on the demand side of the balance sheet looking forward."On Monday, the US Department of Agriculture Weekly Export Inspection Report showed that soybean inspections totaled 27.5 million bushels for the week ending April 16.Total inspections for 2025-26 are now at 1.18 billion bushels, down 25% from the previous year. Soybean inspections are running behind USDA's estimated pace, even as USDA's estimate of soybean ending stocks is 20% above the previous five-year average.

Oil & Energy

Crude Flows via Hormuz Shrink, Refinery Margins Tighten Despite Ceasefire, Rystad Says

Global crude markets are tightening further as oil shipments via the Strait of Hormuz continue to fall, deepening a supply shock that traders had hoped was easing after last week's brief pullback in Brent prices, Rystad Energy strategists said in a note Monday."Friday's Brent complex sell-off on Trump's reopening announcement offered some relief. Margins clawed back, and on some North Sea, West African, and Black Sea grades, the numbers briefly looked workable again," Paola Rodriguez-Masiu, chief oil analyst at Rystad, said.Physical crude costs have surged well beyond futures benchmarks, with Dated Brent averaging above $20 per barrel in April and physical differentials plus freight adding another $20 to $ 25, pushing replacement-crude economics into unworkable territory for many refiners.Rystad said some traders interpreted last week's Brent retracement as a sign that the worst of the disruption had passed. However, the underlying physical constraints have not improved.Rodriguez Masiu said the acute phase is not behind us. "Europe needs more product, and the refineries capable of producing it are cutting runs. The rational response at the refinery level would be catastrophic at the system level," she said.Oil shipments via the Hormuz have dropped since the outbreak of the Middle East conflict.Rystad said April is on track for a deeper disruption than March, with Middle East Gulf production averaging 14.3 million b/d, about 3 million b/d below last month and over 13 million b/d short of pre-war levels.The consultancy said shipments at alternative outlets, Yanbu, Fujairah, and Ceyhan, have hit record highs at a combined 6.8 million b/d, but only 4.2 million b/d of that is incremental supply, far short of replacing lost volumes.Flows improved in early April as a dual-corridor opened through Iranian and Omani waters, and Iraqi loadings ticked higher. However, traffic deteriorated again after the Apr. 8 ceasefire, despite Iran's announcement that it would reopen the Strait.With a US naval blockade still restricting ships entering or leaving Iranian ports, Rystad notes that the last remaining flows, largely Iranian crude and condensate, are now drying up.Peace talks are expected to continue ahead of the ceasefire's expiry on Apr. 22, but Rystad said even a swift resolution would not restore supply immediately.The consultancy forecasted that it would take until July for flows to recover to 80-90% of pre-war levels, and another one to two months before those barrels reach refineries as finished products.The tightening has driven the Dated-to-Frontline Brent spread to about $25/bbl, reflecting the extreme premium for barrels available for immediate loading."A market this short will not flatten gently," Rodriguez Masiu said. "It will correct through higher prompt prices, and the longer the refinery margin squeeze runs, the sharper that correction will need to be."