Halliburton Posts Improved 3Q on Strong Pressure Pumping Market
US oilfield services provider Halliburton posted strong 3Q 2017 results October 23, with total operating income rising nearly 400%, to $634mn from $128mn in the year ago period, led by the company’s completion and production division.
The company’s total income from continuing operations was $365mn in 2Q 2017, up from $28mn in the second quarter this year and $201mn in 2Q 2016.
“We had a strong quarter and I am very pleased with our results,” Halliburton CEO Jeff Miller said. “Our North American business is hitting on all cylinders and our international business proved resilient in a challenging environment.”
Halliburton’s completions and production division registered a 13% increase in revenues for the third quarter, while operating margins improved by 215 basis points, overcoming an approximate 50 basis point negative impact related to Hurricane Harvey.
“This was driven by improved activity and pricing throughout North America land in our pressure pumping, completion tools and cementing product service lines,” Miller said.
Completion and production revenue in 3Q 2017 increased to $3.5bn from $3.13bn in the second quarter and from $2.18bn in 3Q 2016. Spring break-up recovery and activity in pressure pumping benefited Canadian performance, Miller said, while new contracts in Brazil and increased activity in the Middle East boosted International results.
Along geographic lines, North American revenue was up 14% sequentially, relative to a 6% increase in the average North American rig count. The improvement was driven largely by increased utilization and pricing throughout the US and across the majority of Halliburton’s product service lines, primarily in pressure pumping, as well as higher well completion and pressure pumping activity in Canada.
International revenue rose 4% in 3Q 2017 compared to 2Q 2017, to $2.3bn from $2.2bn, resulting primarily from increased activity across multiple product services lines in Latin America, and increased pressure pumping services and drilling activity in the Eastern Hemisphere.
Latin America revenue in the third quarter of 2017 was also up 4% sequentially, driven by increased activity in Argentina, higher production group activity in Brazil and increased drilling activity in Mexico. Europe/Africa/CIS revenue in the third quarter of 2017 rose 6% sequentially, primarily due to improved utilisation in the majority of Halliburton’s product services lines in the North Sea and improved drilling and well completion services in Russia and Nigeria.
Finally, Middle East/Asia revenue was up 3% sequentially, primarily resulting from increased drilling activity in the Middle East and project management activity in Indonesia, partially offset by reduced activity and pricing across southeast Asia and lower project management activity in Iraq.
Dale Lunan