Halliburton profit beats on international demand for oilfield services
US oil and gas producers cut spending to reward investors with share buybacks and dividends
A drilling crew member raises a drill pipe on to the drilling rig floor on an oil rig in the Permian Basin near Wink, in Texas. Photograph: Nick Oxford/Reuters
Halliburton on Monday beat analysts’ estimates for second-quarter profit, as higher international demand for its oilfield services cushioned weakness in North America, its largest market.
Oilfield service companies have been relying more on demand from international markets, which has recovered after a prolonged slump in oil prices, especially at a time when US oil and gas producers cut spending to reward investors with share buybacks and dividends.
Demand for services like drilling and pumping has also been hit by weak oil prices late last year and pipeline constraints in the Permian Basin, the biggest shale play in the United States and home to a majority of the oil rigs.
Profit on demand
Rival Schlumberger on Friday posted a higher-than-expected second-quarter revenue and an increase in profit on demand from markets outside North America.
Halliburton’s revenue from international markets jumped more than 12 per cent to $2.60 billion, while revenue from North America fell 13.2 per cen t to $3.33 billion.
Net profit fell to $75 million, or nine US cents per share, in the quarter to June 30th, from $511 million a year earlier. – Reuters