Is Halliburton’s Revenue Rising Faster than Peers’ Revenues?



Comparing revenue growth

In this article, we’ll discuss how our four oilfield service (or OFS) companies fared in terms of revenue growth in 2Q17 over 2Q16.

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Halliburton was the holdout

Halliburton’s (HAL) 2Q17 revenue rose ~29% to $5.0 billion from $3.8 billion a year ago. It posted the highest revenue growth in our set of OFS companies here. Halliburton’s revenue increased mostly due to a higher US rig count and strong improvement in the US onshore operations.

The laggards

Schlumberger (SLB) registered the second highest revenue growth in the group. It recorded 4.2% revenue growth in 2Q17 to ~$7.5 billion versus ~$7.2 billion a year earlier. Higher hydraulic fracturing activity in North America and better pricing for SLB’s products and services improved its revenues in 2Q17. SLB makes up 6.8% of the Vanguard Energy ETF (VDE). Read Market Realist’s article on Why Schlumberger’s 2Q17 Earnings Beat Estimates for more information.

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National Oilwell Varco (NOV) recorded a ~2% revenue rise in 2Q17 compared to the year-ago quarter. Its 2Q17 revenue was $1.76 billion versus $1.72 billion a year earlier. Lower revenues in NOV’s Rig Systems and Rig Aftermarket segments offset improved revenues in the Completion & Production Solutions and Wellbore Technologies segments in 2Q17. NOV makes up 0.06% of the SPDR S&P 500 ETF (SPY). The energy sector makes up 6.0% of the SPX-INDEX. The SPX-INDEX rose 14% in the past one year versus an 8% fall in NOV’s stock price.

Weatherford was the most affected

Weatherford International (WFT) recorded a 3% revenue decline in 2Q17 compared to the year-ago quarter. Its 2Q17 revenue was $1.36 billion versus ~$1.40 billion a year earlier. A change in accounting for revenue in Venezuela and a seasonal slowdown in Canada primarily accounted for the revenue decline in 2Q17.

We’ll look at the earnings growth figures of these companies in the following section.


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