Halliburton sees momentum building upstream

Oilfield services company Halliburton said April 21 it had a strong first quarter, which it attributed to economic recovery in North America.

The company reported net income during the first quarter of $170mn, compared with a net Q4 loss of $235mn. For North America, total revenue marked a 13% increase over the last period.

“The first quarter marked an activity inflection for the international markets, while North America continued to stage a healthy recovery,” CEO Jeff Miller said. “I expect international activity growth to accelerate, and the early positive momentum in North America gives me confidence in the activity cadence for the rest of the year.”

In the North American market this period, Halliburton delivered a “smart” fracturing system in the Permian basin, an industry first that provides real-time feedback on reservoir behaviour.

US shale activity is forecast to slow down somewhat. The US Energy Information Administration in its drilling productivity report this month finds only the Permian, Appalachia and Haynesville plays are expecting more work next month.

Upstream service activity was mixed for Halliburton’s international operations. Latin America revenue was up 26% from Q4, supported by services in Argentina and Mexico. Overseas, the company saw a 1% decrease in revenue driven in part by lower activity in Russia and Kazakhstan, which both slashed output last year as part of their OPEC+ commitments.