Shares in Halliburton slide despite above-forecast earnings

(Sharecast News) - Halliburton posted above-forecast quarterly numbers on Tuesday, after strong trading in international markets helped offset a weaker performance in the war-hit Middle East.

The American oilfield services giant posted total revenues of $5.71bn in the three months to June end, up from $5.51bn a year earlier, while net income jumped to $538m from $480m. Adjusted profits per share were $0.55, narrowly beating forecasts for $0.54.

Revenues were broadly flat in North America, at $2.3bn, and fell in the Middle East and Asia, its second-largest region, from $1.5bn a year previously to $1.3bn. Halliburton said it had been hit by lower activity across multiple product services lines in Kuwait, Iraq and Qatar due to the ongoing war between the US and Iran.

However, stronger trading elsewhere in the world, including in the North Sea, meant that overall, international revenues were up 5% on the first quarter.

Chief executive Jeff Miller said he was pleased with second-quarter trading. "I believe the global outlook for Halliburton is strong. I expect our differentiated technology and value proposition [to] set the stage for revenue growth and margin expansion," he said.

"I see demand growth for our services and technology in every region we serve.

"In North America, I am encouraged by the recovery we saw this quarter and I expect incremental improvements through the year."

However, the subdued North American performance weighed on the New York-listed stock despite Miller's upbeat assessment, with the shares losing 6% within an hour of the market opening.