Jan 21 (Reuters) – Halliburton surpassed analysts’ expectations for fourth-quarter profit on Wednesday, on the back of steady demand for its services and equipment in international markets.
Shares of the oilfield services company rose nearly 2.6% in premarket trading.
The Houston-based company, which kicked off the earnings season for U.S. oilfield services providers, has focused on international markets, particularly Latin America, Europe and Africa, as North America drilling and production activity has remained tepid.
NORTH AMERICA REVENUE FLAT
Quarterly revenue from Halliburton’s international business rose 2.9% to $3.5 billion, due to higher completion tool sales in Brazil, North Sea and the Caribbean, as well as higher software sales in Mexico, the company said.
Improved well construction activity in Africa, and higher stimulation activity in Angola also helped earnings.
North America revenue was flat at $2.2 billion.
“I expect North America is the first to respond when macro fundamentals improve,” CEO Jeff Miller said.
Halliburton posted an adjusted profit of 69 cents per share for the three months ended December 31, compared with analysts’ expectations of 55 cents per share, according to estimates compiled by LSEG.
The company recognized a pre-tax charge of $83 million, partly related to an impairment of assets held for sale and severance costs.
Halliburton was among the oil companies that met with the White House earlier this month to discuss potential investment in Venezuela. Miller had said the company was “very interested” in returning.
(Reporting by Vallari Srivastava in Bengaluru, and Arathy Somasekhar in Houston. Editing by Krishna Chandra Eluri and Mark Potter)
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