(Reuters) -Halliburton posted lower first-quarter profit on Tuesday as a slowdown in drilling activity in North America dampened demand for its oilfield services and equipment.
The company’s shares fell 6% in premarket trading following the results that included a pre-tax charge of $356 million.
Halliburton is the first of the Big Three U.S. oilfield services provider to report earnings as the sector braces for the impact of President Donald Trump’s tariffs that are expected to disrupt supply chains and drive up the cost of steel-related equipment such as drilling rigs and well casings.
An ongoing weakness in North America drilling activity has added to the pressure on the sector.
Oilfield services firms have been struggling in North America due to reduced U.S. shale activity, with operators cutting drilling budgets and focusing on capital discipline, leading to lower demand and fewer rigs in operation.
Halliburton said North America revenue in first-quarter was $2.2 billion, a 12% decrease from a year earlier.
The Houston-based company posted a profit of $204 million, or 24 cents per share, in the three months ended March 31, lower than $606 million, or 68 cents per share, it posted last year.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
