Stock Markets April 21, 2026 06:52 AM

Halliburton Q1 Profit More Than Doubles as Latin America Strength Offsets Middle East Weakness

Strong gains in Latin America and steady European demand helped lift results, even as Middle East activity cooled amid regional disruptions

By Ajmal Hussain HAL
Halliburton Q1 Profit More Than Doubles as Latin America Strength Offsets Middle East Weakness
HAL

Halliburton reported a more-than-twofold increase in first-quarter net income, driven by higher revenue in Latin America and modest growth in its international segment. The oilfield services provider saw total revenue of $5.4 billion and net income attributable to the company of $461 million for the quarter, but noted that elevated oil prices have not spurred higher demand for its services as producers remain cautious.

Key Points

  • Halliburton's net income attributable to the company more than doubled to $461 million, or $0.55 per share, in Q1 from $204 million, or $0.24 per share, a year earlier.
  • International revenue rose slightly to $3.3 billion, while Latin America revenue jumped nearly 22% to $1.09 billion, helping offset weaker Middle East activity.
  • Despite oil prices rising more than 94% sequentially in Q1 due to supply disruptions, oilfield services demand did not increase meaningfully as producers remained cautious.

Halliburton said its first-quarter profit more than doubled, supported by a rebound in Latin America and steady activity across European markets that helped counter slower work in the Middle East.

The company reported total revenue of $5.4 billion for the three months ended March 31. Net income attributable to Halliburton was $461 million, or $0.55 per share, compared with $204 million, or $0.24 per share, a year earlier.

On the international front, quarterly revenue edged up to $3.3 billion, from $3.2 billion in the year-ago period. Latin America was a standout, with revenue there increasing nearly 22% to $1.09 billion.

Regional energy disruptions played a major role in commodity price moves during the period. Attacks on energy infrastructure in the Middle East, together with Iran effectively closing the Strait of Hormuz, produced what the company characterized as the largest supply disruption in history and pushed oil prices sharply higher - rising more than 94% sequentially in the first quarter.

Despite the surge in oil prices, Halliburton said the higher commodity prices did not translate into a corresponding boost in demand for oilfield services and equipment. Instead, oil producers adopted a more cautious stance and did not significantly increase drilling activity, limiting near-term service demand for companies in the sector.


Context and implications

The quarter illustrates a divergence between commodity price moves and service-sector activity. While oil prices rose sharply due to supply disruptions, that pricing environment did not immediately drive additional spending by producers on drilling and related services. Halliburton's results therefore reflect both geographic resilience - notably in Latin America - and sensitivity to operator capital allocation decisions in response to geopolitical risk.

Halliburton's reported figures are a snapshot of the three-month period ending March 31 and show how regional dynamics can offset one another in a global services business.

Risks

  • Ongoing disruptions to energy infrastructure and the effective closure of key shipping routes such as the Strait of Hormuz could sustain volatility in oil markets, affecting capital allocation decisions by producers - impacting the energy and oilfield services sectors.
  • A disconnect between higher oil prices and spending on drilling and services poses demand risk for oilfield services providers if producers continue to delay or avoid increasing activity - directly affecting oilfield services and equipment markets.
  • Slowdown in Middle East activity creates regional revenue uncertainty for service providers exposed to that market, with potential implications for companies dependent on a balanced global portfolio.

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