Halliburton Company (HAL - Free Report) delivered better-than-expected fourth-quarter earnings as robust international activity offset headwinds in North America.
The world's second-largest oilfield services company after Schlumberger (SLB - Free Report) reported earnings of 32 cents per share, surpassing the Zacks Consensus Estimate of 29 cents. However, the bottom line was 22% lower than the year-ago figure of 41 cents.
Operating loss incurred by Halliburton was $1.7 billion against $608 million operating income for the same period last year.
Meanwhile, revenues of $5.2 billion were 12.55% lower than the year-ago quarter but topped the Zacks Consensus Estimate of $5.08 billion. North American revenues plunged 30.3% year over year to $2.3 billion. However, revenues from Halliburton’s international operations rose 11.54% from the year-ago period to $2.9 billion, an area that continues to exhibit growth momentum.
The world’s biggest provider of hydraulic fracking noted that although North American activity levels in the fourth quarter ramped down, the company continues to successfully ride on the changing market dynamics through excellent execution and management of the controllable factors.
Notably, Halliburton is witnessing a broad-based, steady recovery in its international business. This is clearly reflected by the 10% increase in the region’s year-over-year sales. The company still anticipates its international revenues to grow in 2020 owing to expanded activity, judicious capital spending, pricing gains to complement Halliburton’s emphasis on high-margin businesses.
Even as the company persistently battles a challenging business landscape in North America, it is looking to boost free cash flow generation and improve returns.