Halliburton’s Q2 Profit Rises as Overseas Drilling Offsets Weaker U.S. Market

Halliburton Company (NYSE: HAL) reported on Friday a higher net income for the second quarter compared to the first quarter and to the same period of 2023, as continued strength in international drilling demand offset weaker activity in North America.

Halliburton, one of the world’s top three oilfield services providers and leader in the U.S. fracking services market, booked a net income of $709 million, or $0.80 per diluted share, for the second quarter of 2024. The profit was in line with analyst expectations.   

The second-quarter earnings compare to $606 million in net income for the first quarter of 2024 and $610 million for the second quarter of 2023.

Total revenue stood at $5.8 billion for the second quarter of 2024, flat quarter-on-quarter and year-over-year. The total revenue was slightly below the consensus estimate of $5.9 billion.

Halliburton’s revenue in North America fell by 3% sequentially to $2.5 billion, primarily driven by decreased pressure pumping services and lower activity across multiple product service lines in the Gulf of Mexico.

Partially offsetting these declines were increased drilling-related services in Canada and U.S. onshore, higher wireline activity in U.S. land and the Gulf of Mexico, improved pressure pumping services in Canada, and increased cementing activity in the Gulf of Mexico, the company said. 

While North American revenues were weaker, Halliburton’s international revenue rose by 3% sequentially to $3.4 billion, with the Middle East, Asia, Europe, and Africa leading the growth.

“In our international markets we see strong demand for Halliburton’s services, high activity levels, and equipment tightness across all major basins,” said Jeff Miller, Chairman, President and CEO.

“In North America, our strategy to maximize value in North America delivers shareholder value, and I expect that we will continue to deliver strong returns through this cycle,” the executive added.

Halliburton’s Q2 earnings continued the trend from the first quarter, which also saw higher international earnings and demand offsetting a weaker U.S. market.

By Charles Kennedy for Oilprice.com

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