Improved North American and international markets for drilling, completion, and production helped oilfield services provider Halliburton Company to book a higher net profit for the second quarter than analysts had estimated.
Halliburton, which generates the largest share of its revenues from North America, 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 ahead of the $0.22 earnings per share estimate of analysts compiled by The Wall Street Journal.
Halliburton also reported rising revenues both in North America and internationally and higher operating income quarter over quarter as the markets continued to improve, said the company, which sees the beginning of a “multi-year upcycle.”
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.
“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.
Following the results release, Halliburton’s shares were up 1.76 percent in pre-market trade in New York.