Halliburton, represented by the ticker HAL.N, exceeded first-quarter profit projections, showcasing its robust performance driven by increasing drilling demand in international markets. The company successfully navigated a slowdown in North America, leveraging higher international and offshore inventory acquisitions by oil and gas producers. This surge in demand for oilfield equipment and services has notably benefitted Halliburton.
The international rig count, a key indicator for future production, averaged at 965 by the end of March, marking a substantial 5.4% increase compared to the previous year, as per data from Baker Hughes. Halliburton’s international segment witnessed a notable 12% revenue surge, reaching $3.3 billion during the January to March quarter, with Latin America contributing significantly to this growth with a remarkable 21% increase.
In contrast, the company’s North America revenue experienced an 8% decline from the previous year, totaling $2.5 billion, primarily attributed to reduced pressure pumping services on U.S. land and diminished wireline activity across the region.
Based in Houston, Texas, Halliburton reported an adjusted profit of 76 cents per share for the quarter ending on March 31, surpassing the average analyst estimate of 74 cents per share, according to LSEG data. Furthermore, the company’s total quarterly revenue amounted to $5.80 billion, surpassing the estimated $5.67 billion.
In comparison, its larger counterpart, SLB (SLB.N), disclosed a 14% increase in first-quarter profit, aligning with analysts’ projections. This growth was propelled by heightened oil and gas drilling demand in the Middle East and Africa, effectively offsetting the weakness observed in North America.