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Halliburton's first-quarter profits fall on North America drilling weakness

Halliburton's first-quarter profits fall on North America drilling weakness

Halliburton reported lower first-quarter profits on Tuesday, as a decline in drilling activities in North America dampened the demand for its oilfield equipment and services.

Shares of the company fell by 6% before market opening following results which included a $356 million pre-tax charge.

Halliburton, the largest U.S. oilfield service provider, is the first to announce earnings. The sector is bracing for the impact that President Donald Trump's new tariffs will have on supply chains. They are also expected to increase the price of steel equipment like drilling rigs and casings.

The sector is under pressure due to a continuing decline in drilling activity in North America.

Oilfield service firms in North America have struggled due to the reduced U.S. Shale activity. Operators are cutting drilling budgets, focusing on capital management, resulting in lower demand and less rigs operating.

Halliburton reported that North America's revenue for the first quarter was $2.2 billion. This is a decrease of 12% from a year ago.

The Houston-based firm posted a loss of $204 millions, or 24 cents a share, for the three months ending March 31. This was lower than its profit last year, which was $606 million or 68 cents a share.

(source: Reuters)