The world's #2 oilfield services provider, Halliburton Company (NYSE:HAL), reported on Monday second-quarter earnings and revenues beating analyst estimates, as continued strengthening of the market conditions in North America drove sales and margins up.
Halliburton booked an adjusted income from continuing operations of US$0.23 per diluted share in Q2, beating the Zacks Consensus Estimate of US$0.19. The Q2 adjusted result compares to US$0.04 of adjusted income from continuing operations per diluted share for Q1 2017.
Halliburton's total revenue also beat forecasts-at US$4.957 billion, it was higher than the Zacks Consensus Estimate of US$4.844 billion.
"Total company revenue this quarter was $5.0 billion, representing a 16% increase compared to the first quarter of this year, while total adjusted operating income was $408 million. These results were primarily driven by continued strengthening of market conditions in North America, which were partially offset by pricing pressure internationally," Halliburton President and CEO Jeff Miller said in the results release.
In North America, Halliburton's revenue rose by 24 percent on the quarter to US$2.8 billion, "driven primarily by increased utilization and pricing throughout the United States land sector, particularly in pressure pumping and well construction product service lines, as well as higher completion tool sales in the Gulf of Mexico."
"North America revenue growth of 24% outpaced the average sequential U.S. land rig count growth of 21%, while our margins grew into the double digits," Executive Chairman Dave Lesar said.
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Last week, bigger competitor Schlumberger (NYSE:SLB) also beat Q2 earnings estimates, and reported North American revenue rising 18 percent sequentially and surging 27 percent year-on-year.
"North America revenue increased 18% following our rapid deployment of idle hydraulic fracturing capacity as land activity further accelerated during the second quarter, partially offset by further weakness offshore in the US Gulf of Mexico. In US land, revenue grew 42% sequentially, a rate almost double that of the 23% increase in land rig count, driven primarily by hydraulic fracturing revenue that grew 68% as completions activity intensified and pricing continued to improve," Schlumberger Chairman and CEO Paal Kibsgaard said in Friday's press release.
By Tsvetana Paraskova for Oilprice.com
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