Halliburton Profit Jumps 32% on Higher Global Drilling Demand

Halliburton reported a 32% rise in third-quarter profit on Tuesday as higher international drilling and equipment demand helped overcome weakness in North America.

Oil and gas companies, who rely on service providers for drilling, well construction, and completion services, are reinvesting record profits from the market disruption caused by Russia’s invasion of Ukraine to intensify the hunt for new offshore and international sources.

“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,” CEO Jeff Miller said in a statement.

International revenue rose 3% sequentially to $3.2 billion in the quarter on the back of Latin America strength, while revenue from North American fell 3% to $2.6 billion.

“This decline was primarily driven by decreased pressure pumping services in U.S. land and lower well intervention services in the Gulf of Mexico,” Halliburton said.

North American producers have kept a tight lid on spending and production since the 2020 prices downturn. Halliburton and rival Baker Hughes  had in July warned of weakening North America oilfield activity. 

Bigger rival SLB on Friday beat third-quarter estimates on strong global oil drilling activity, but was also hurt by North American weakness.

The Houston-based Halliburton said net income attributable to the company rose to $716 million, or 79 cents per share, for the three months ended Sept 30, from $544 million or 60 cents per share, a year earlier.

On an adjusted basis, Halliburton posted a profit of 77 cents, in line with the analysts’ average estimate, according to LSEG data.

 (Reuters – Reporting by Arunima Kumar in Bengaluru; Editing by Arun Koyyur)