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Oil and gas servicing giant Halliburton reported better than expected second quarter earnings Tuesday before the market. Improved North American and international markets for drilling, completion, and production with $HAL's aggressive approach to cutting costs flowed through.

Halliburton Oilfield

The Baker Hughes oil rig count benefiting oil service companies has been recovering since falling off the cliff with the decreased activity in North America and the world since the Covid pandemic. Halliburton serves the upstream oil and gas industry throughout the lifecycle extraction to completion of the energy source.

Halliburton Company NYSE: HAL Reported Before Open Monday

$0.05 Beat ($0.12) EPS Forecast But $3.20 Bil Missed $3.35 Billion Forecast in Revenue

Earnings

Halliburton Company (NYSE: HAL) booked a higher net profit for the second quarter than analysts had estimated. Halliburton reported on Tuesday net income of $227 million, or $0.26 per diluted share, for the second quarter of 2021. This compares to $0.19 earnings per share for the first quarter of 2021 and is a allihead of the $0.22 earnings per share estimate of analysts compiled by The Wall Street Journal and compared with a loss of $1.68 billion in the prior year or a loss of $1.91 a share in the year-ago period.

Halliburton also reported rising revenues both in North America and internationally quarter over quarter as the markets continued to improve. The company booked $2.15 billion in impairments and other charges in the year-ago period. Revenue rose to $3.71 billion from $3.2 billion. Analysts were looking for $3.71 billion for $HAL, which generates the largest share of its revenues from North America,

Halliburton sees the beginning of a “multi-year upcycle.” 

"The positive activity momentum we see in North America and international markets today, combined with our expectations for future customer demand, gives us conviction for an unfolding multi-year upcycle," said Jeff Miller, chairman, president and chief executive.

Although the number of oil and gas rigs in North America has dipped compared to pre-pandemic levels, the latest tally from Baker Hughes showed that the total rig count in the United States stood at 484 last week, up by 231 from the same time last year.

Read: Schlumberger International Oil and Gas Activity Offset North America Pricing

Read: U.S. Took Down Another 5 Oil Rigs From Service, 8 From The Permian

Halliburton Company NYSE: HAL

Market Reaction $20.07 ▲ 0.71 (3.67%)

Highlights

  • “Total company revenue increased 7% sequentially, as both North America and international markets continued to improve, and operating income grew 17% with solid margin performance in both divisions,” said Jeff Miller, Halliburton’s chairman, president, and chief executive officer.
  • Halliburton’s revenue in North America jumped by 12 percent sequentially to $1.6 billion for the second quarter, thanks to higher pressure pumping services, drilling-related services, and wireline activity in North America land, as well as higher well construction activity in the Gulf of Mexico.
  • “Halliburton’s Completion and Production division margin reached three-year highs, while our Drilling and Evaluation division margin outperformed expectations, setting both divisions up for robust margin growth this year,” Miller noted.
  • “The positive activity momentum we see in North America and international markets today, combined with our expectations for future customer demand, gives us conviction for an unfolding multi-year upcycle,” the executive said.

     

Source: HAL

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