Halliburton Upbeat on International Demand; Cost Cuts to Save $400 Million Annually

Oct 21 (Reuters) – Halliburton (HAL.N) said on Tuesday it expected international oilfield revenue to rise in the fourth quarter as overall drilling activity remained steady, while projecting $400 million in annual savings from its cost-cutting measures.

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Shares of the company, the third-largest global oilfield services company by revenue, jumped 9%, aided by a partnership with VoltaGrid to provide power solutions for data centers globally, starting in the Middle East.

Halliburton, however, forecast a 12% to 13% sequential decline in North America revenue in the fourth quarter, despite the region powering its third-quarter profit beat.

Larger rival SLB (SLB.N) beat expectations on stable North America demand, but said it does not expect to see a significant pickup in the region’s drilling activity.

Oil industry operators have remained cautious amid volatile crude prices, OPEC+ spare capacity, and trade concerns, especially in North America.

Halliburton also expects fourth-quarter tariff impact of $60 million, compared with $31 million in the previous quarter.

Meanwhile, the company has cut its 2026 capital spending plan by 30% to $1 billion, idled underperforming equipment, and implemented cost-control measures that are expected to save $100 million per quarter.

Last month, Reuters reported that Halliburton has been cutting jobs.

RECOVERY BETS

CEO Jeff Miller said he expects demand to recover quickly in North America.

“We fully expect the recovery will come quickly in North America, and we want those fleets ready to fill gaps and take on larger projects,” he said.

Quarterly revenue from its North America segment was $2.4 billion, flat from a year earlier, but above analysts’ average estimate of $2.17 billion.

Halliburton reported an 8% drop in third-quarter revenue year-over-year in Middle East/Asia. The company expects demand recovery in Saudi Arabia in the first half of 2026.

The company reported an adjusted profit of 58 cents per share for the quarter ended September 30, beating analysts’ estimate of 50 cents, according to LSEG data.

Reporting by Tanay Dhumal in Bengaluru; Editing by Tasim Zahid and Sriraj Kalluvila