Halliburton reported a first-quarter profit drop to $204 million (24 cents/share) from $606 million last year, with shares falling 6% to $20.62 after warning of a second-quarter earnings hit.

CEO Jeff Miller cited President Trump’s tariffs, which raise costs for steel-based equipment like drilling rigs, and weak U.S. crude prices below $64/barrel, deterring profitable drilling.

North American revenue declined 12% to $2.2 billion, as producers scaled back production due to prices below the $65 threshold. International revenue dipped 2%, led by reduced activity in debt-laden Mexico.

Halliburton forecasts a 2-3 cent/share impact from trade tensions, with second-quarter earnings at 63 cents/share. Despite a $356 million charge, including $107 million in severance costs, revenue of $5.42 billion beat estimates.

The company expects flat to slightly lower international revenue and a 1-3% rise in completion division revenue, but drilling margins may drop significantly.

Miller noted potential equipment “white space” as clients cut 2025 activity, possibly retiring or exporting fleets. The oilfield services sector braces for tariff-driven supply chain disruptions, with Halliburton’s stock down 24% year-to-date, outpacing rival SLB’s 11% decline.