Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Halliburton beats quarterly profit estimates as pricing improves

Published Apr 25, 2023 06:52AM ET Updated Apr 25, 2023 10:07AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The company logo of Halliburton oilfield services corporate offices is seen in Houston, Texas April 6, 2012. REUTERS/Richard Carson/File Photo
 
NG
-1.29%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SLB
+2.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HAL
+1.63%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Liz Hampton and Arunima Kumar

(Reuters) - Oilfield firm Halliburton (NYSE:HAL) Co on Tuesday reported a first-quarter profit that topped Wall Street estimates as a tight services and equipment market has helped drive demand and improve its pricing.

Global oil futures are currently trading above $80 a barrel, down about 20% from a year ago but still higher than the price most companies need to drill profitably. Markets have been choppy in the past month, falling to around $70 a barrel amid concerns of a banking crisis before rebounding on a surprise cut by OPEC+.

"Our customers are clearly motivated to produce more oil and gas and service capacity is tight," Chief Executive Jeff Miller said in a statement. Halliburton is the largest provider of U.S. hydraulic fracturing equipment.

Revenue in its North America business was up 44% to $2.8 billion, while its international revenue increased by 23% to $2.9 billion.

Halliburton said it had moved three hydraulic fracturing fleets from gas to oil basins amid weaker prices. It expects natural gas markets, which fell 50% at the start of the year, to rebound as new LNG export facilities come online over the next two years.

It reported an operating margin of 17.2%, an increase of 530 basis points.

Halliburton's free cash flow (FCF) of negative $105 million for the quarter came in under analysts' expectations, which the company attributed to seasonal investments in working capital. It anticipates free cash flow generation to be back-loaded to the second half of the year.

"FCF slightly below our estimate, but not unreasonable given seasonality," wrote analysts for investment firm TD Cowen, which had anticipated free cash flow of $38 million.

Shares were down 1.2% to $34.06 in early trading, while global oil prices were off about 2% at $81 a barrel.

Going forward, Halliburton anticipates year-on-year international growth in the high teens, and North America growth to exceed 15%.

Houston-based Halliburton said net income attributable to the company stood at $651 million, or 72 cents per share, for the three months ended March 31, beating analysts' forecast for earnings of 67 cents per share, according to data from Refinitiv. That's up from earnings of $263 million, or 29 cents per share, a year earlier.

Halliburton beats quarterly profit estimates as pricing improves
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email