Halliburton is cutting its workforce and shelving fracking equipment amid a slowdown in the U.S. shale industry.
The oilfield services giant said that its revenue fell 13 percent in the second quarter, and it decided to cut its North American workforce by 8 percent. The company’s share price jumped 9 percent on the news, with shareholders apparently heartened by the cost-trimming measures.
Halliburton “is emphasizing a return on capital approach, and has stacked additional equipment in 2Q where returns were not justified, and expects activity down in [North America] in 3Q,” Morgan Stanley wrote in a note.
In an earnings call with analysts and shareholders on Monday, Halliburton CEO Jeff Miller laid out a few strategies in response to the weak shale market. The company has slashed capex by 20 percent as demand for its services has slowed. “We have sufficient size and scale in this market and see no reason to invest in growth when it comes at the expense of returns,” Miller said.Click here to read more.