Lower prices for hydraulic fracturing services in North America continue to sting Houston-based Halliburton, the second largest oilfield service company in the world.
Halliburton posted a $152 million profit and earnings per share of 17 cents on $5.7 billion of revenue during the first quarter, the company reported early Monday morning.
The company's first quarter earnings fell in line with Wall Street expectations of earnings per share of 22 cents and beat expectations of $5.52 billion of revenue
First quarter figures also marked a dramatic improvement over the $46 million profit and earnings per share of 5 cents on $5.7 billion of revenue during the first quarter of 2018.
Service Sector: Schlumberger's profit falls on shale drilling, fracking slowdown
With 58 percent of its revenue coming from onshore activities in the United States, Halliburton has high risk exposure to fluctuations in demand for horizontal drilling and hydraulic fracturing services in U.S. shale basins.
Crude oil prices fell dramatically during the fourth quarter of 2018 sending demand and prices for hydraulic fracturing services falling through most of the first quarter.
Halliburton CEO Jeff Miller believes that the worst pricing declines are over. Earlier this year, Miller predicted that new pipelines coming into service in the Permian Basin of West Texas during the second half of this year would eventually result in higher demand and prices for drilling and completion activities.
"As expected, the first quarter activity levels in North America were modestly higher compared to the first quarter of 2018, and we experienced pricing headwinds throughout the quarter," Miller said. "We believe the worst in the pricing deterioration is now behind us. For the next couple of quarters, I see demand for our services progressing modestly."
Fuel Fix: Get daily energy news headlines in your inbox
Founded in 1919 and headquartered in Houston, Halliburton employs more than 60,000 people in 80 nations – making it the second largest oilfield company in the world just behind Schlumberger.