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 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.