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

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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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