Halliburton: Comprehensive Analysis of Company Performance in Saudi Market

Halliburton was founded in 1919 in Duncan, Oklahoma, USA, starting as a small facility specializing in cement services related to oil wells. Over the following decades, the company rapidly expanded its operations to cover all drilling and completion services, including geological assessment, production, and maintenance. Its expansion is attributed to a focus on innovation and the adoption of the latest industrial technologies, being one of the first companies to introduce horizontal drilling solutions and smart completion systems in the oil sector. By the mid-20th century, Halliburton became a key player in the U.S. oil services market and soon turned to international expansion with the oil boom in the Middle East and Latin America. The company has undergone various acquisitions and strategic alliances, enhancing its position in global markets, especially in the Gulf countries, where it played a significant role in developing Saudi and Kuwaiti oil fields. By the late 20th century, Halliburton increased its investments in research and development, enabling it to provide integrated solutions for major global oil companies. Today, the company has a presence in over 70 countries and employs tens of thousands of specialized personnel. Halliburton's history exemplifies the evolution of oil service companies from small local firms to influential global entities capable of adapting to technological and economic changes in the energy sector. This long journey highlights the company's resilience and ability to adapt to changes, whether in oil prices, environmental regulations, or increasing customer demands. Halliburton's accumulated experience over decades of work in diverse environments is one of the key factors that make it a reliable partner in major oil projects worldwide.

Halliburton offers a wide range of services and technical solutions that cover the entire value chain in the oil and gas industry. Its services start from the geological exploration phase, providing advanced techniques for soil surveying and rock formation analysis. In drilling, the company is a pioneer in using horizontal and directional drilling techniques, allowing for more efficient access to oil and gas reservoirs. It also provides geological evaluation services during drilling (LWD/MWD), enabling oil companies to monitor geological layer characteristics in real-time, contributing to increased success rates and reduced risks. In the well completion phase, Halliburton offers advanced solutions including smart completion systems, production enhancement techniques (such as hydraulic fracturing), and remote smart monitoring. Additionally, its production and maintenance services include well intervention, water or gas injection, and remediation services to extend well life. One of Halliburton's strengths lies in its ability to integrate digital solutions and big data into its operations, reflected in the development of software platforms for field management and operational data analysis. The company also provides advanced environmental solutions to reduce emissions and improve resource consumption efficiency, in line with the growing global sustainability requirements. Halliburton continuously works on developing new technological solutions such as smart sensors and fiber optic technologies for underground performance monitoring, as seen in its recent FiberLine technology. Through these comprehensive services, Halliburton ensures its clients achieve the highest levels of productivity while reducing costs and operational risks, making it a key partner in major energy projects worldwide, particularly in the Saudi market.

Halliburton's financial structure reflects the company's robustness and its ability to withstand cyclical fluctuations in the oil and gas sector. According to results for 2024 and 2025, Halliburton maintained sustainable profitability, supported by stable demand for drilling and production services in global markets. In the second quarter of 2024, the company achieved a net income of $709 million, with an earnings per share of $0.80, which is a strong indicator of improved operational performance compared to previous years that experienced volatility in oil prices. The company's quarterly revenues ranged between $5.8 and $6.0 billion in each quarter during the first half of 2024, with operational revenues stabilizing between the drilling and evaluation sectors and the equipment and production sectors. Throughout 2024, total revenues ranged between $23 and $25 billion, with moderate annual growth expected between 2% and 4% in 2025, driven by increased exploration activity in the Middle East, Asia, and North America. In terms of financing structure, Halliburton maintains a balanced debt-to-capital ratio, enhancing its flexibility in financing long-term investment projects without negatively impacting dividend distributions. The company continues its commitment to quarterly dividends, which amounted to $0.25 per share in 2024, providing an annual dividend yield estimated at 4-5% based on the stock price. This balanced financial approach highlights Halliburton's ability to maintain its competitive position even in a market environment characterized by volatility and challenges. This strong financial performance is one of the factors that ensures the company continues to attract global investors and enhance their confidence in its long-term strategy.

Valuations of major companies like Halliburton rely on a set of key financial indicators that provide a comprehensive picture of the company's performance and market position. Among these indicators, the price-to-earnings (P/E) ratio stood at approximately 20-22 times for Halliburton in 2024, reflecting investor confidence in the sustainability of the company's profits and future growth. This level of P/E ratio is relatively average to high compared to the energy sector, which is often affected by fluctuations in oil prices. As for the share price, it ranged between $26 and $27 at the end of 2024, equivalent to approximately 98-102 Saudi Riyals, and increased by 10-12% during the year, supported by improved quarterly earnings results. Halliburton's market capitalization is around $34 billion, or approximately 127 billion Saudi Riyals, placing it among the largest oil service companies globally. Regarding dividends, the company maintains a quarterly distribution policy of $0.25 per share each quarter, translating to an annual yield ranging between 3% and 5%, which is relatively attractive given market fluctuations. The importance of these indicators lies in their reflection of the company's balance between reinvesting profits in expansion and research and development, and rewarding shareholders through distributions. For comparison, Saudi companies like Hail Cement (symbol 3001) trade at much lower values and relatively modest distributions, highlighting the difference between global oil service companies and local industrial firms. All these indicators confirm that Halliburton possesses a strong financial position, with a clear ability to generate regular returns and provide relative security for international investors.

Although Halliburton is not listed on the Saudi stock exchange, its role in the local oil sector is highly significant. Halliburton has been a key strategic partner for Saudi Aramco for decades, participating in major drilling projects and providing advanced technical solutions in well evaluation, completion, and production. Aramco, as the world's largest oil producer, relies on the expertise of global oil service companies like Halliburton to ensure efficient field development and the use of the latest technological innovations. Practical examples include Halliburton's contribution to unconventional gas drilling projects and the application of hydraulic fracturing techniques in areas such as the Ghawar field and the Empty Quarter. The company has also participated in supplying advanced equipment and managing offshore and onshore drilling projects according to the highest international standards. Halliburton works through local partnerships with Saudi companies like Al-Tamimi Group, which represents the commercial and distribution arm for some of the company's global products and services in the Kingdom. These partnerships enable Saudi companies to benefit from advanced technology and knowledge transfer, aligning with Saudi Vision 2030, which aims to localize industrial supply chains. Furthermore, Halliburton's projects contribute to job creation and the development of local engineering competencies through training and joint development programs. This dynamic is a successful example of the role of foreign companies in supporting the Saudi economy beyond listing on the local financial market, where the impact is measured by the added value to the industrial and energy sector.

The oil and gas services sector is one of the most competitive and complex sectors globally, requiring a blend of technical innovation, operational efficiency, and the ability to manage large projects in diverse geographical environments. Halliburton is the second-largest global provider of oil field services after Schlumberger, competing with major companies such as Baker Hughes and Weatherford, in addition to a range of smaller national and international firms. The services provided in the sector cover everything related to drilling, geological assessment, completion, production, and maintenance, with an increasing focus on digital solutions and artificial intelligence. Halliburton's strength lies in its ability to provide integrated packages that combine traditional technical services with digital transformation, giving it a competitive advantage in modern energy projects. At the same time, major oil companies like Saudi Aramco, BP, and ExxonMobil rely on global companies to achieve their production goals and adopt the latest technologies. On the other hand, sector companies face increasing pressures from cyclical fluctuations in oil prices, changing environmental regulations, and the global shift towards clean energy. Halliburton responds to these challenges by investing in research and development, adopting environmental sustainability solutions, and expanding its presence in emerging markets. In the Saudi market specifically, major international companies remain the preferred choice for high-tech projects, while competition with local contractors in traditional services is increasing. This competitive landscape continuously drives Halliburton to develop innovative solutions that meet the aspirations of its clients and fulfill the requirements of the changing energy sector.

Halliburton occupies a prominent position among oil and gas service giants, but competition with companies like Schlumberger, Baker Hughes, and Weatherford remains fierce in most global markets. Schlumberger is the largest globally in terms of market share and service diversity, holding a significant share of international projects and excelling in research and development. Baker Hughes excels in certain drilling and production technologies and has a strong presence in the U.S. and European markets. Weatherford, despite its smaller size, specializes in complex well solutions and advanced equipment. Halliburton's distinction lies in its ability to integrate digital solutions with traditional services, offering comprehensive packages covering all stages of the well lifecycle. Regarding financial indicators, Halliburton often achieves similar P/E ratios and market values to its competitors, with variations in distribution policies and capital expenditures. For example, Schlumberger's P/E ratio in 2024 was around 20 times, while its share price approached $55, and its market value was around $80 billion, more than double Halliburton's market value. However, Halliburton remains more flexible in managing costs and achieving regular returns for shareholders. In the Saudi market, these companies compete for major Aramco contracts, where clients prefer integrated solutions and high technical expertise, giving Halliburton a strong competitive position despite its absence from Tadawul. As the importance of sustainability and innovation in the sector increases, Halliburton continues to invest in modern technologies to maintain its leadership and face fierce competition.

Technological innovation is the cornerstone of Halliburton's strategy to maintain its leading position in the oil and gas services sector. The company invests billions of dollars annually in research and development, working on developing smart solutions that keep pace with the rapid transformations in the industry. Among Halliburton's latest innovations is the FiberLine technology, which relies on fiber optics to enhance well monitoring and flow testing underground. This technology allows for real-time collection of accurate data about well conditions, such as pressure and temperature, aiding in quick and effective operational decisions. Additionally, Halliburton adopts artificial intelligence solutions to analyze the vast data generated from drilling and production operations, leading to improved operational efficiency and reduced unexpected costs. Developments have not been limited to technical aspects but also include the development of advanced software platforms for field management and remote performance monitoring, enabling clients to track operations in real-time and make strategic decisions based on accurate data. In an environment characterized by complex operations and increasing safety and sustainability requirements, the importance of these innovations in supporting oil companies to achieve their production goals while adhering to environmental standards is highlighted. Halliburton is among the first companies to introduce clean energy solutions in oil services, such as carbon dioxide injection technologies and improving energy efficiency in drilling equipment. Through these continuous developments, Halliburton ensures its clients advanced solutions that meet market requirements and contribute to enhancing competitiveness, especially in advanced markets like Saudi Arabia.

Halliburton experienced stable financial performance during 2024 and 2025, with continued recovery in the oil and gas sector after periods of price volatility and production constraints. In the second quarter of 2024, the company reported a net income of $709 million, reflecting its ability to achieve strong profits despite market challenges. Quarterly revenues stabilized between $5.8 and $6.0 billion, with a balance between the drilling, evaluation, and production sectors. Total revenues for 2024 reached approximately $23–25 billion, with moderate annual growth expected between 2% and 4% in 2025, supported by increased exploration and remediation activity in the Middle East, Asia, and North America. Regarding dividends, the company maintained a quarterly dividend distribution policy of $0.25 per share, providing an annual yield ranging between 3% and 5% based on the share price. This performance indicates Halliburton's ability to maintain its financial stability even amid ongoing fluctuations in oil prices. On the other hand, the company continued to implement cost reduction programs and improve operational efficiency, contributing to enhanced profit margins. The company witnessed slight growth in some markets such as Europe and Africa, while maintaining its strong position in the Middle East due to its partnerships with national oil companies. These results reflect Halliburton's ability to adapt to sector changes and confirm its importance as a strategic partner in major energy projects worldwide, including the Saudi market.

Halliburton's results and performance are directly affected by fluctuations in global oil prices and OPEC+ production agreements, as capital expenditure by oil companies is the primary driver of demand for its services. As oil prices rise, major oil companies have increased capacity to finance new exploration and drilling projects, positively impacting Halliburton's business volume and revenues. For instance, the stabilization of oil prices above $75 per barrel in early 2025 prompted oil companies to reopen delayed drilling projects and increase spending on field development, leading to a general recovery in the oil services sector. Conversely, periods of declining prices often lead companies to cut their budgets and reduce demand for services, as seen in previous years. OPEC+ agreements play a pivotal role in determining global production levels, thus indirectly affecting the volume of projects launched by national oil companies, especially in Gulf countries like Saudi Arabia. In contrast, Halliburton has the ability to adapt to these shifts by distributing its operations across various geographical regions and investing in technologies that reduce costs and increase operational efficiency. This is reflected in its ability to maintain good profit margins even during downturns. In the Saudi market, Halliburton's business volume is closely linked to Aramco's plans to increase capital expenditure and expand projects, providing the company with opportunities to benefit from any growth in the local energy sector. Overall, the dynamics of oil prices and production agreements are critical elements in shaping Halliburton's business trajectory and determining its future strategies.

Halliburton's future plans align with the objectives of Saudi Vision 2030, which aims to diversify the economy and increase local content in the energy and manufacturing sectors. The company seeks to enhance its presence in the Saudi market by transferring technology and localizing supply chains through partnerships with local companies such as Al-Tamimi Group and initiatives to train national talents. With Saudi Aramco expanding its unconventional oil and gas projects and raising capital expenditures to over $40–50 billion annually, new opportunities arise for Halliburton to provide advanced technical solutions in smart drilling, hydraulic fracturing, and digital transformation for field management. The company also aims to contribute to clean energy projects, such as carbon dioxide injection and carbon storage, in line with the Kingdom's direction towards reducing emissions and achieving environmental sustainability. Projects for developing natural gas and renewable energies are promising areas for the company's growth in the coming years. Globally, Halliburton targets expansion in emerging markets, focusing on innovation in digital technologies and improving operational efficiency. These strategies contribute to enhancing the company's position as a key technical partner in major energy projects and increasing its competitiveness in a rapidly changing market environment. Through these initiatives, Halliburton continues its role in supporting industrial transformation in Saudi Arabia and enabling the energy sector to achieve its strategic goals within the framework of Vision 2030.

Halliburton places increasing importance on environmental and social aspects in its operational strategy, recognizing the growing demands for sustainability and social responsibility in the energy sector. The company is committed to applying best environmental practices in all its projects, from carbon emission reduction technologies to recycling water used in drilling operations, and expanding clean energy solutions such as carbon dioxide injection and underground storage. Halliburton has launched several initiatives to improve energy efficiency in its equipment and services and reduce the carbon footprint of its operational activities, aligning with the goals of the Paris Climate Agreement. Socially, the company focuses on developing local competencies in the markets where it operates through training programs and knowledge transfer, supporting community initiatives in education, health, and occupational safety. In Saudi Arabia, Halliburton participates in localization initiatives and training programs for Saudi engineers and technicians, supporting the Kingdom's goals in enhancing local content in line with Vision 2030. The company also promotes diversity and inclusion in its work environments and provides a safe and healthy environment for its employees at all its locations worldwide. These efforts reflect Halliburton's growing commitment to environmental and social responsibility, enhancing its reputation as a trusted partner for national and international oil companies and supporting its competitiveness in a market environment witnessing rapid developments in sustainability and corporate responsibility standards.

Halliburton seeks to play a pivotal role in supporting local development and technology transfer in the countries where it operates, with a particular focus on Saudi Arabia. Through its partnerships with local companies, such as Al-Tamimi Group, the company contributes to the transfer of technical knowledge and the localization of industrial supply chains, supporting the objectives of Vision 2030. Halliburton works on training and developing national talents through specialized training programs covering aspects of drilling, production, maintenance, and oil project management. The company has launched several initiatives to transfer advanced technologies, such as smart monitoring systems and digital solutions in field management, to Saudi teams working on oil and gas projects. It also participates in supporting research and development programs in collaboration with local universities and research institutions, contributing to building an advanced knowledge base that supports industrial innovation in the Kingdom. Its initiatives also include supporting local small and medium enterprises by providing them with opportunities to participate in project implementation and offering technical consulting to develop their competitive capabilities. Furthermore, Halliburton is committed to applying the highest safety and quality standards in all its operations, enhancing the trust of local and international partners. These efforts are part of a broader strategy aimed at maximizing the economic and social impact of the presence of global companies in the Kingdom and enhancing the competitiveness of the local industrial sector at both regional and international levels.

Investing in global oil companies like Halliburton is an option that attracts the interest of many investors due to the company's size, geographical spread, and strong financial performance. However, investing in this sector requires a deep understanding of the nature of oil companies' operations, the economic cycle of oil, and the impact of geopolitical and environmental factors. Among the key concepts that investors should be familiar with are the price-to-earnings (P/E) ratio, dividend yield, and cash liquidity, as these indicators reflect the company's ability to generate regular profits and distribute them to shareholders. The capital expenditures of national and international oil companies also play a crucial role in determining the demand for services from companies like Halliburton. Global oil price fluctuations, production agreements between producing countries (such as OPEC+), and environmental sustainability requirements impact the results of these companies. On the other hand, investing in foreign companies requires awareness of differences in tax and regulatory frameworks, especially when trading on foreign exchanges like the New York Stock Exchange. It is worth noting that oil service companies often exhibit higher earnings volatility compared to oil production companies themselves, due to their direct link to investment cycles in the sector. Therefore, it is always recommended to study annual and quarterly financial reports, analyze the company's strategies and future plans, and consult a licensed financial advisor before making any investment decision.