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Halliburton Company (NYSE: HAL) booked higher net income for the third quarter compared to both the second quarter of 2023 and the third quarter of last year amid strong international demand for drilling services.
The oilfield services provider, one of the world’s top three such companies and the leader in U.S. fracking, reported on Tuesday a net income of $716 million, or $0.79 per diluted share, for the third quarter of 2023. This compares to a net income of $610 million for the second quarter of 2023, and to a net income of $544 million for the second quarter of 2023.
The EPS for the third quarter of this year was in line with analyst projections.
Halliburton’s international revenue rose by 17% year-on-year and by 3% quarter-on-quarter to $3.2 billion, with Latin America, Europe, and Africa leading the sequential growth.
North American revenue, on the other hand, dropped by 3% sequentially to $2.6 billion in the third quarter of 2023, due to lower revenues from pressure pumping services in U.S. land and lower well intervention services in the Gulf of Mexico, Halliburton said.
“I am pleased with the stability of our North America business and the profitability of our International growth,” chairman, president, and CEO Jeff Miller said in a statement.
“Everything I see today strengthens my conviction in the long duration of this upcycle. Against this backdrop, we expect continued demand growth for oilfield services in 2024 and beyond,” Miller added.
Both Halliburton and SLB (NYSE: SLB) have now reported lower North American revenues in the third quarter compared to the second quarter.
Yet, Halliburton’s upbeat outlook on global growth echoes similar comments from SLB, which reported on Friday higher-than-expected earnings for the third quarter as global drilling demand further strengthened.
“The long-term nature of these global investments underscores the breadth, durability, and resilience of this cycle, and we expect these market dynamics to continue to drive profitable growth in the years ahead,” SLB’s chief executive officer Olivier Le Peuch said last week.
The other major oilfield services provider, Baker Hughes, will announce its Q3 earnings later this week.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.