Halliburton Company (NYSE: HAL) booked slightly higher-than-expected adjusted earnings for the first quarter, driven by rising international demand for oilfield services.
The company, one of the world’s top three oilfield services providers and leader in the U.S. fracking services market reported on Tuesday an adjusted net income of $679 million for the first quarter of 2024, or $0.76 per diluted share. This beat the analyst consensus forecast of $0.74 EPS compiled by The Wall Street Journal.
Halliburton’s total revenue rose by 2% year-over-year to $5.8 billion for the first quarter of 2024. Revenues in North America dropped by 8% annually to $2.5 billion, due to lower pressure pumping services in the shale basins with lower wireline activity throughout the region, partially offset by higher drilling-related services in the Gulf of Mexico.
International revenue, however, jumped by 12% to $3.3 billion, as demand for oilfield services and tools rose in all major markets, including the Middle East, Europe, and Latin America, Halliburton said.
“Activity in North America recovered from fourth-quarter lows, and our international business delivered its 11th consecutive quarter of year-on-year growth,” said Jeff Miller, chairman, president, and CEO at Halliburton.
“Our customers’ multi-year activity plans across markets and asset types confirms my confidence in the strength and duration of this upcycle.”
Halliburton’s upbeat outlook follows SLB’s earnings and outlook report from last week, in which the world’s largest oilfield services provider reiterated its confidence of a strong international drilling market going forward.
SLB reported 14% higher net income for the first quarter compared to the same period last year, amid strong international drilling demand that more than offset a weaker North American market.
“The oil and gas industry continues to benefit from strong market fundamentals driven by a growing demand outlook. This is resulting in a significant baseload of activity, particularly in the international and offshore markets, closely aligned with the strengths of our business,” SLB’s chief executive Olivier Le Peuch said in a statement.
By Tsvetana Paraskova for Oilprice.com
Lead image (Credit: Reuters)
