Oil and gas servicing giant Halliburton $HAL reported better than expected Q217 results on Monday before the market. $HAL like Schlumberger $SLB has benefited from the American shale boom.
Oil and gas servicing giant Halliburton $HAL reported Q217 results on Monday before the market. HAL competitor Schlumberger $SLB reported earnings boosted by shale fracking activity last week. $HAL said the North America revenue growth of 24% outpaced the average sequential U.S. land rig count growth of 21%, with margins into the double digits.
The Baker Hughes rig count has risen all but two weeks since January benefiting both companies. Halliburton serves the upstream oil and gas industry throughout the lifecycle extraction to completion of the energy source.
Earnings: Net profit US$28 million, or 3 cents per share compared to loss of US$3.21bn, or US$3.73 per share in Q216 and operating income of $203 million for Q117.
Reaction Halliburton NYSE: HAL Pre-market: Pre-market: 45.50 +1.12 (+2.52%)
North America revenue in 2Q17 soared 82%YoY to $2.8Bil, due to increased utilization and pricing throughout the US land sector. Meanwhile, International revenue slipped 5.7% to $2.2Bil, weighed down by Europe/Africa/CIS region.
HAL operates under two main segments; Completion and Production and Drilling and Evaluation.
The Completion and Production division revenue increased 20% in the quarter and operating margins improved by 700 basis points to approximately 13%, driven by the strength in our production enhancement, cementing and completion tools product service lines. Our Drilling and Evaluation division is driven, in large part, by our international footprint. While we experienced a modest increase this quarter the overall market continues to move sideways with continued pricing pressure. said Jeff Miller, President and CEO.
Source: HAL, Alphastreet
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