Oct 25 (Reuters) – Halliburton Co (HAL.N) posted an increase in revenue for the third quarter on Tuesday that beat forecasts and despatched its shares increased, the newest oilfield providers agency to report better-than-expected outcomes amid a world surge in drilling exercise.
Brent crude averaged $98.96 a barrel throughout the quarter, up about 33% from a yr earlier as sanctions on main oil producer Russia for its invasion of Ukraine upended world provide routes. In the meantime, demand has rebounded sharply from pandemic lows.
“Trying ahead, we see exercise rising world wide – from the smallest to the most important nations and producers,” Halliburton Chief Govt Jeff Miller mentioned in an announcement. In North America, he mentioned demand for providers is “stronger than I’ve ever seen at this level within the yr.”
Miller informed traders Halliburton’s gear remained bought out for the rest of 2022 and mentioned the market can be tight in 2023.
The Houston-based firm’s web revenue rose to $544 million, or 60 cents per share, for the quarter ended Sept. 30, from $236 million, or 26 cents per share, a yr earlier. Analysts had anticipated earnings of 56 cents per share.
Halliburton mentioned income from North America jumped 9% from the second quarter to $2.6 billion. Worldwide income rose 3% sequentially to $2.7 billion.
The corporate mentioned outcomes throughout its enterprise divisions had been negatively impacted by the wind-down and sale of its Russia operations within the third quarter to its native administration group. That unit now operates beneath the identify BurService LLC, unbiased of Halliburton.
For the 9 months ended Sept. 30, the corporate recorded $366 million in expenses and impairments, largely because of the sale of its Russia belongings, and the impairment of belongings in Ukraine.
Shares of Halliburton had been up 3.6% in early buying and selling to $35.81 every. U.S. oil futures had been up about 1% to $85.47 .
“Halliburton continues to profit from momentum in exercise/publicity to stress pumping in North America, together with increased contribution from worldwide operations,” wrote analysts for funding banking agency Jefferies in a word.
The corporate mentioned it had retired some $1.2 billion in debt to date this yr and had paid down $2.4 billion in debt since 2020. It mentioned it’s in discussions with its board on rising returns to shareholders.
Market chief Schlumberger (SLB.N) reported its strongest quarterly revenue since 2015, whereas Baker Hughes Co (BKR.O) posted an adjusted third-quarter revenue that topped Wall Avenue estimates.
Reporting by Shariq Khan in Bengaluru and Liz Hampton in Denver; Modifying by Kirsten Donovan and David Holmes
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