July 20 (Reuters) – Oil company Halliburton Co (HAL.N) beat Wall Street earnings estimates on Tuesday and offered an optimistic view of demand for energy services as slowing oil drilling activity s ‘fade.
The Houston, Texas-based company kicked off oil services results with a 33% jump in second-quarter profits from the previous three months.
Crude oil futures hit $ 77 a barrel in early July – the highest since late 2018 – due to falling inventories and rising demand. Oil was trading around $ 69 a barrel on Tuesday, fearing that a spike in COVID-19 infections could dampen demand, just as OPEC + producers agreed this week to increase supply. Read more
Second-quarter earnings were $ 227 million, or 26 cents per share, from $ 170 million, or 19 cents per share, in the first quarter. Wall Street expected a profit of 23 cents per share. Halliburton incurred a loss of $ 1.91 per share on impairment charges during the quarter of last year.
“We believe we are at the start of a multi-year bull cycle. For the first time in seven years, we anticipate simultaneous growth in international and North American markets, ”said Jeff Miller, Managing Director of Halliburton.
Its bullish outlook includes spending on drilling and well completion in North America, up double-digit percent over the next two years. He also expects double-digit growth in international oil activity for the second half of this year compared to the same period in 2020.
Shares rose 3.6% in the afternoon to $ 20.06.
Halliburton 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 the pace of earnings and improving margins.
“The margin performance that supported results should be sufficient to generate relative outperformance for HAL 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 post quarterly profits after heavy losses a year ago.
Reporting by Arunima Kumar in Bengaluru and Liz Hampton in Denver; Editing by Chizu Nomiyama, Marguerita Choy and Chris Reese
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