© Stocksak. FILE PHOTO – Participants watch a presentation at Halliburton’s booth at the World Petroleum Congress in Houston (Texas), U.S.A, December 7, 2021. REUTERS/Liz Hampton
(Stocksak). -Halliburton Co reported a rise in profit for its third quarter on Tuesday. This beat analysts’ forecasts. It is the latest oilfield services company to report better-than expected results amid an increase in drilling activity around.
Average oil price was $98.96/barrel during the quarter. This is 33% more than a year ago due to sanctions against Russia for its invasion in Ukraine. However, demand has recovered sharply from the pandemic lows.
Halliburton (NYSE) Chief Executive Officer Jeff Miller stated that “looking forward, activity will increase around the globe – from the smaller to the largest countries or producers,” in a statement. Miller stated that North America’s demand for services is “stronger” than any time in the past year.
The net income of the Houston-based company rose to $544million, or 60c per share, in the quarter ended September 30, from $236million, or 26c per share, one year earlier. Analysts expected earnings of 56 cents per shared.
Halliburton announced that North American revenue grew 9% in the second quarter to reach $2.6 Billion. International revenue increased 3% to $2.7 billion.
According to the company, results across all business divisions were adversely affected by the winding down and sale of Russia operations in the third quarter. The local management team was responsible for the sale. The unit is now called BurService LLC and is independent of Halliburton.
The company recorded $366 Million in charges and impairments for the nine months ended September 30, largely due the sale of its Russia assets and the impairment of assets from Ukraine.
After jumping 2% earlier in morning, shares of Halliburton rose 0.78% in premarket trading at$34.85. U.S. crude oil futures fell by 1.14%, to $83.62.
“Halliburton continues the benefit from momentum activity/exposure pressure pumping in North America together with higher contribution from foreign operations,” stated Jefferies analysts in a note.
Market leader Schlumberger (NYSE 🙂 reported its strongest quarterly profit ever since 2015, while Baker Hughes Co reported an adjusted third quarter profit that exceeded Wall Street estimates.