Halliburton's Q4 2024 Results: A Mixed Bag for Investors

Halliburton Company (NYSE: HAL), one of the world's largest oilfield service providers, recently announced its fourth quarter and full-year 2024 results. The company reported net income of $0.72 per diluted share, operating margin of 17.5%, full-year revenue of $20.3 billion, and operating income of $2.7 billion. While these results show improvement compared to the previous year, they also highlight some challenges that the company faces.



Halliburton's revenue for the quarter was $5.6 billion, a 3% increase from the previous quarter. However, this growth was lower than expected, and the company's operating margin of 17.5% was below the 18% margin reported in the third quarter. The company's full-year revenue of $20.3 billion was a 33% increase from 2021, while operating income of $2.7 billion was a 50% increase. Despite these improvements, Halliburton's earnings per share (EPS) of $0.72 was below the $0.75 expected by analysts.



Several factors contributed to Halliburton's mixed results. The company's North America revenue decreased by 1% compared to the previous quarter, primarily due to weather-related lower stimulation activity and artificial lift activity. Additionally, the company's international revenue grew by 9% compared to the previous quarter, driven by higher activity across multiple product service lines in Mexico, increased completion tool sales in the region, and improved well construction services in Colombia. However, these increases were partially offset by lower activity in Norway and decreased pipeline services across the region.



Halliburton's Completion and Production segment revenue increased by 1% compared to the previous quarter, driven by improved pricing, service efficiency, and activity mix in North America land, as well as higher completion tool sales and cementing activity globally. However, the Drilling and Evaluation segment's revenue decreased by 2.3% compared to the previous quarter, primarily due to decreased project management activity and testing services in Mexico, as well as lower drilling-related activity in Russia.



Despite these mixed results, Halliburton's board of directors approved a 33% increase in the company's quarterly dividend to $0.16 per share, effective for the first quarter of 2025. The company also announced that it had repurchased approximately $300 million of its common stock during the fourth quarter of 2024.



In conclusion, Halliburton's Q4 2024 results were a mixed bag for investors, with revenue growth and operating margins below expectations. The company's North America revenue decreased, while international revenue grew. The Completion and Production segment's revenue increased, while the Drilling and Evaluation segment's revenue decreased. Despite these challenges, Halliburton's board approved a dividend increase and stock repurchases, demonstrating the company's confidence in its future prospects. As the oil and gas industry continues to evolve, investors will closely watch Halliburton's performance and strategic initiatives to determine the company's long-term success.