Halliburton Co. said on Tuesday it expects global oil and gas industry recovery from the second quarter. Estimates came after the oilfield services provider reported total revenues of $3.24 billion, beating analysts’ estimates of $3.21 billion.
- Halliburton’s earnings were boosted by cost cuts of about $1.15 billion above the targeted $1 billion and modest gains in activity.
- The company’s revenue from North America rose 25.8% from the third quarter, while international revenue gained 0.4%
- Drilling and evaluation revenue rose 1.9% sequentially and is expected to increase in the low single-digit in the first quarter from the fourth.
- Halliburton expects revenue from the business to rise 3% to 5% in the current quarter from the fourth, though operating margins are expected to fall 150 to 200 basis points.
- Crude oil prices are holding to gains from a rebound in late-2020, with Brent crude hovering around $55 per barrel on Tuesday after averaging around $45 in the last three months of 2020.
- Oil price gains have encouraged producers to complete more wells and add rigs, with the North American rig count hitting 410 at year-end, up from 341 in the third quarter.
- Halliburton CEO Jeff Miller sees 2021 as a transition year and 2022 when a global rebalancing of supply and demand will occur amid more consolidation in the industry.
- Crude upturn activity in North America would continue, while international markets would bottom out during the first quarter and improve as the year unfolds-Miller
Halliburton’s stock is currently declining. HAL: NYSE is down 0.19%
