Houston-based Halliburton Co. (HAL) stock rose slightly Monday, April 23, as the oilfield service provider experienced sand delivery challenges and took a charge related to its business in Venezuela, even though it reported a 34% increase in revenue driven by expanding U.S. production.
Shares rose 0.17% to close at $52.05.
Total revenue rose to $5.74 billion, compared to $4.28 billion a year ago. The results were relatively in-line with analysts' expectations of $5.75 billion.
The company's revenue from its North America business soared about 58% to $3.52 billion as oil and gas production rose.
"Activity in U.S. land remains resilient as our customers have a large portfolio of economically viable projects in today's commodity price environment," Chief Executive Officer Jeff Miller said in a statement. "As a result of the improved activity in U.S. land, in March we achieved a new record for stages per spread as the pressure pumping market remains tight."
But Halliburton's completions and production division was negatively affected by sand delivery challenges, due to weather-related rail interruptions, Miller said.
The company also booked a charge of $312 million as it wrote down investments in Venezuela as the country struggles to overcome economic challenges and the continued devaluation of the local currency. Still, Halliburton said it will maintain its presence in Venezuela and "is carefully managing its go-forward exposure."
The oilfield service provider reported income from continuing operations of $46 million, compared to a loss from continuing operations of $32 million during the same period a year prior. Earnings, adjusted for one-time items, came in at 41 cents per share, which met estimates.
"With HAL stock up about 10% over last month, doesn't feel like an in-line [first quarter] print will be enough, in isolation, to keep the good times rolling near-term for this stock which has been our favorite among the large-cap diversified OFS names," Tudor Pickering Holt & Co. wrote in a Monday morning research note.