Oil and gas servicing giant Halliburton reported better than expected Q118 earnings but lower revenue than expected on Monday before the market. $HAL like Schlumberger $SLB has benefited from the American shale boom and oil prices at three year highs.
Oil and gas servicing giant Halliburton Q118 reported results on Monday before the market. $HAL like Schlumberger $SLB and Baker Hughes a GE Co. $BHGE earnings have been boosted by shale fracking activity spurred on by high oil prices.
The Baker Hughes oil rig count has been has been building higher benefiting oil service companies. Halliburton serves the upstream oil and gas industry throughout the lifecycle extraction to completion of the energy source.
Earnings
Earnings per share of US$0.41 on revenue of US$5.7 bln in the quarter ended March 31 slightly under consensus estimates for $0.41 per share on revenue of $5.8 bln.
With oil prices at three year highs North American exploration and production companies are boosting oil and gas activity. North America revenue jumped nearly 58% to US$3.52bln, while revenue from international operations rose 9%. Total revenue jumped to $5.74bln from $4.28bln.
Halliburton Company NYSE: $HAL
Market Reaction $51.27 USD −0.68 (-1.31%) Apr 23, 11:00 AM EDT
“Our Completions and Production division was negatively impacted by delays in sand delivery, due to weather related rail interruptions during the quarter, but achieved a strong March exit with margins in the mid-upper teens. Our Drilling and Evaluations division had strong year over year revenue growth of 15% while operating income grew 54%” said Jeff Miller, President and CEO.
- Europe/Africa/CIS revenues rose 18.5%
- Middle East regions revenues rose 7% respectively.
- Latin America turned negative with revenue dipping 1.3% year-over-year. The company has curbed its operations in Latin America in the recent past due to reduced count of fracturing stage in Argentina and scaled down activity in Brazil.
HAL operates under two main segments; Completion and Production and Drilling and Evaluation.
Source: HAL, Alphastreet
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