• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 32 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 9 hours Confirmed: UN Expert Urges Probe Of Saudi Prince Over Khashoggi Killing
  • 49 mins Emissions Need To Be Halved To Avoid 3C Warming
  • 6 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 56 mins Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 7 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 3 hours Coal Boom in Asia is Real and a Long Trend
  • 7 hours The Plastics Problem
  • 3 mins The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 4 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 7 hours US to become net oil exporter in November: EIA
  • 4 hours Trudeau approves Trans Mountain Pipeline
  • 9 hours Hydrogen FTW... Some Day
  • 7 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
OPEC Aims For $60-$70 Oil

OPEC Aims For $60-$70 Oil

Equatorial Guinea’s Oil Minister Obiang…

Halliburton Beats Estimates Despite Weaker U.S. Demand

oil jack

Halliburton (NYSE:HAL) reported on Monday a net income of US$435 million, or US$0.50 per diluted share, for the third quarter of 2018, up from the third quarter of 2017, but down from the second quarter as demand in the North American market softened.

Still, Halliburton slightly exceeded the US$0.49 earnings per share consensus estimate for Q3 2018 of The Wall Street Journal.

In the second quarter, the income was US$0.58 per diluted share, but the slowdown in completions in North American fracking dragged Q3 income lower compared to Q2, as Halliburton warned earlier this year. 

A slowdown in activity in North America due to budget constraints and takeaway issues would impact Halliburton’s Q3 earnings by between US$0.08 to US$0.10 per share, CEO Jeff Miller warned last month.

In the Q3 earnings release today, Miller confirmed the lower demand for completion services in North America, noting that the issues were “temporary”, and he also confirmed that the international business is recovering and posting revenue growth.

“In North America, a combination of offtake capacity constraints and our customers’ budget exhaustion led to less demand than expected for completion services. I believe that these are temporary issues, and that the catalysts for improving demand for services are clearly visible: supportive commodity pricing, expanding offtake capacity, building well inventory, and reloaded customer budgets,” Miller said in today’s statement.

Related: Saudi Arabia Unlikely To Cut Oil Supply Over Khashoggi Case

“Our international business continues to show signs of a steady recovery, with revenue increasing 5% sequentially, and every international region growing this quarter,” the chief executive noted.

North America revenue in Q3 was US$3.7 billion, down 2 percent sequentially, primarily driven by lower pricing for stimulation services in the United States land sector and reduced drilling fluids activity. International revenue, however, rose 5 percent quarter-on-quarter to US$2.4 billion.

While Halliburton said that the North American issues were only temporary, its competitor Schlumberger issued a grimmer warning on Friday that “while the current Permian takeaway constraints in North America should be addressed within the next 12 to 18 months, a series of reservoir- and production-related challenges is emerging in the US shale basins that could dampen the most optimistic production growth projections.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News