Halliburton, a leading provider of drilling and completion services, announced a significant 32% surge in third-quarter (Q3) profits, bolstered by heightened international drilling and equipment requisition. This robust performance was instrumental in offsetting a slump in North American operations.
Oil and gas enterprises, heavily reliant on service providers for critical operations such as drilling, well construction, and completion services, have been strategically reinvesting record-breaking profits stemming from the market turbulence ignited by Russia’s incursion into Ukraine. The objective: a fervent pursuit of fresh offshore and international resources.
CEO Jeff Miller voiced unwavering confidence in the prevailing economic upturn, remarking, “Everything I see today strengthens my conviction in the long duration of this upcycle. Against this backdrop, we expect continued demand growth for oilfield services in 2024 and beyond.”
Halliburton reported a noteworthy 3% sequential revenue augmentation, reaching $3.2 billion in the quarter, propelled by a robust Latin American market. However, revenue from the North American sector witnessed a 3% decline, settling at $2.6 billion. The company attributed this dip primarily to reduced demand for pressure pumping services in U.S. land and diminished well intervention services in the Gulf of Mexico.
In the fiscal quarter culminating on September 30th, 2020, Halliburton revealed a net income attributable to the company of $716 million, or 79 cents per share. On an adjusted basis, the company reported a profit of 77 cents per share, in alignment with market projections.
Halliburton’s formidable counterpart, Schlumberger (SLB), also reported a commendable quarter, surpassing estimates on the back of robust global oil drilling activity. However, SLB grappled with a similar challenge, contending with North American market fragility.
In conclusion, the remarkable Q3 profits of Halliburton demonstrate not only their resilience in a challenging market but also their pivotal role in driving the oil and gas industry’s pursuit of new global opportunities.
Source: Reuters
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