Halliburton (HAL) shares plummeted 8.94% in Tuesday's pre-market trading following the release of disappointing first-quarter earnings that reflected a significant slowdown in North American drilling activity. The oilfield services giant reported a sharp decline in profit, with net income falling to $204 million, or 24 cents per share, compared to $606 million, or 68 cents per share, in the same period last year.

The company's revenue for the quarter ended March 31 came in at $5.42 billion, down from $5.80 billion a year earlier. While this figure surpassed analysts' expectations of $5.28 billion, it wasn't enough to offset concerns about the weakness in Halliburton's largest market. North America revenue dropped by 12% year-over-year to $2.2 billion, primarily due to reduced stimulation activity in U.S. land operations and decreased completion tool sales in the Gulf of America.

Despite the challenges in North America, Halliburton CEO Jeff Miller remained optimistic about the company's international prospects. He highlighted strong tender activity and new contract wins for integrated offshore work extending through 2026 and beyond. However, investors seemed more focused on the immediate headwinds facing the company, including the ongoing pressures on the energy sector and the potential impact of recent geopolitical tensions on oil prices and drilling activity.