Halliburton profit jumps 33% as oilfield activity rebounds


The company logo for the Halliburton Oilfield Services offices is seen in Houston, Texas on April 6, 2012. REUTERS / Richard Carson / File Photo

July 20 (Reuters) – Halliburton Co (HAL.N) on Tuesday announced a 33.5% increase in second quarter profits from the previous three months on Tuesday, as crude prices rebound from pandemic lows boosted demand of petroleum services.

Global crude prices climbed 18.2% in the quarter ended June 30 and are up about 37% year-to-date. Rising prices helped bolster activity in the oilfield, with the number of U.S. rigs increasing for the 11th consecutive month in June, according to data from Baker Hughes.

There were 470 drills at the end of the second quarter, compared to 417 at the end of the first quarter.

“The positive business momentum that we are seeing today in North America and international markets, combined with our expectations regarding future customer demand, gives us the conviction of a multi-year growth cycle underway,” said said Jeff Miller, CEO of Halliburton.

Shares were up about 2.7% in pre-market activity, trading around $ 19.89.

Halliburton said net income attributable to the company reached $ 227 million, or 26 cents per share, in the quarter ended June 30, from $ 170 million, or 19 cents per share, in the first quarter. Wall Street analysts had forecast earnings of 23 cents per share for the quarter.

The Houston-based company reported second-quarter revenue of $ 3.707 billion, slightly missing revenue estimates of $ 3.735 billion, according to data from Refinitiv IBES.

Still, analysts said the results were positive, indicating higher earnings and improving margins.

“The margin performance that supported results should be sufficient to generate relative outperformance for HAL (Halliburton) today,” analysts at investment firm Tudor Pickering & Holt Co. wrote Tuesday.

Rivals Baker Hughes Co (BKR.N) and Schlumberger NV (SLB.N) are also expected to release their quarterly results this week.

Reporting by Arunima Kumar in Bengaluru and Liz Hampton in Denver; Editing by Sriraj Kalluvila and Chizu Nomiyama

Our Standards: Thomson Reuters Trust Principles.

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