Will Rig Count Affect HAL’s International Revenues in 4Q16?



Revenue from international operations

In 3Q16, Halliburton’s (HAL) revenue share generated outside the US rose. HAL’s international revenues rose to 57% of its total revenues in 3Q16 compared to 55% in 3Q15. By comparison, Schlumberger’s (SLB) revenues from its international operations by the end of 3Q16 rose to ~76% of its total revenues compared to 71% a year ago. Read more on Schlumberger in Market Realist’s Ready to Soar: What Can Investors Expect from Schlumberger?International Rev and Rig Count

Article continues below advertisement

International rig count

By September 30, the international rig count had fallen 18% compared to a year ago. The fall was less compared to the US rig count fall, as we have discussed in the previous part.

From September to November, the international rig count fell 1%. A lower international rig count could decrease HAL’s revenues and earnings in 4Q16. HAL makes up 0.20% of the iShares Dow Jones US ETF (IYY). The energy sector makes up 7.1% of IYY. Baker Hughes (BHI), which has entered an agreement with GE (GE) to form a partnership, could benefit from increased international exposure. For more information, read Market Realist’s Can the BHI–GE Partnership Benefit from Global Growth?

Next, we’ll discuss Halliburton’s revenue and earnings.


More From Market Realist