Halliburton profit beats on international demand for oilfield services
(Reuters) - Halliburton Co (HAL.N) on Monday beat analysts’ estimates for second-quarter profit, as higher international demand for its oilfield services cushioned weakness in North America, its largest market.
Oilfield service companies are depending on demand from international markets, which has recovered since 2018 after a prolonged slump in oil prices, especially at a time when U.S. oil and gas producers cut spending and drill less to reward investors with share buybacks and dividends.
Rival Schlumberger NV (SLB.N) posted a higher-than-expected second-quarter revenue and a year-over-year profit increase on demand from markets outside North America.
Halliburton’s revenue from international markets jumped more than 12% to $2.60 billion, while revenue from North America, its largest market, fell 13.2% to $3.33 billion.
“Momentum is building internationally and activity improvement should continue into 2020,” Chief Executive Officer Jeff Miller said in a statement.
Net profit attributable to Halliburton fell to $75 million, or 9 cents per share, in the quarter ended June 30, from $511 million, or 58 cents per share, a year earlier.
Excluding one-time items, the company earned 35 cents per share, beating Wall Street average estimate of 30 cents per share, according to IBES data from Refinitiv.
Revenue fell to $5.93 billion from $6.15 billion in the quarter.
Reporting by Nishara Karuvalli Pathikkal and Arathy S Nair in Bengaluru; Editing by Arun Koyyur