Halliburton reported fourth-quarter earnings that beat expectations, as international activity continued to offset weak conditions in North America, according to results published by Reuters on Tuesday. The oilfield services provider posted adjusted profit of 69 cents per share for the quarter ended December 31, above the 55-cent consensus compiled by LSEG, even as profit slipped year on year due to charges tied to asset impairments and restructuring.
Revenue rose to about $5.66 billion, helped by international sales, while North America remained flat. Reuters reported that international revenue increased 2.9% to $3.5 billion, driven by higher completion tool sales in Brazil, the North Sea, and the Caribbean, alongside stronger software sales in Mexico. North America revenue was unchanged at $2.2 billion as U.S. shale producers continued to restrain spending amid lower oil prices and capital discipline.
The Wall Street Journal separately reported that Halliburton’s overall profit declined from a year earlier despite higher revenue, reflecting cost pressures and an $83 million pretax charge related in part to asset impairments and severance costs. Chief executive Jeff Miller told Reuters that North America is typically the first region to respond when macro conditions improve, but the company’s latest results again showed international markets carrying growth.
In its third-quarter reporting, Halliburton had already flagged stronger overseas demand relative to North America, with particular strength in Latin America and parts of Africa, while warning that U.S. activity was likely to remain pressured. That trend has also appeared across the oilfield services sector. Peers are facing similar conditions, with international projects offering more stable demand while North American drilling remains muted.
Halliburton’s shares rose in early trading following the earnings release, tracking gains across the oilfield services space as investors focused on the international revenue contribution rather than the year-on-year profit decline.
The earnings report also arrives as Halliburton positions for a potential reopening of work in Venezuela if U.S. sanctions and operating rules change. Earlier this month, Halliburton executives met with the White House to discuss possible investment in Venezuela’s oil sector, with Miller saying the company was “very interested” in returning. Halliburton said it could move quickly if permitted, citing its long operating history in the country and the lower capital risk carried by service companies compared with upstream operators.
By Charles Kennedy for Oilprice.com
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