By Liz Hampton and Shariq Khan
(Reuters) -Halliburton Co posted a rise in profit for the third quarter on Tuesday that beat forecasts and sent its shares higher, the latest oilfield services firm to report better-than-expected results amid a global surge in drilling activity.
Brent crude averaged $98.96 a barrel during the quarter, up about 33% from a year earlier as sanctions on major oil producer Russia for its invasion of Ukraine upended global supply routes. Meanwhile, demand has rebounded sharply from pandemic lows.
"Looking forward, we see activity increasing around the world - from the smallest to the largest countries and producers," Halliburton (NYSE:HAL) Chief Executive Jeff Miller said in a statement. In North America, he said demand for services is "stronger than I have ever seen at this point in the year."
Miller told investors Halliburton's equipment remained sold out for the remainder of 2022 and said the market would be tight in 2023.
The Houston-based company's net income rose to $544 million, or 60 cents per share, for the quarter ended Sept. 30, from $236 million, or 26 cents per share, a year earlier. Analysts had anticipated earnings of 56 cents per share.
Halliburton said revenue from North America jumped 9% from the second quarter to $2.6 billion. International revenue rose 3% sequentially to $2.7 billion.
The company said results across its business divisions were negatively impacted by the wind-down and sale of its Russia operations in the third quarter to its local management team. That unit now operates under the name BurService LLC, independent of Halliburton.
For the nine months ended Sept. 30, the company recorded $366 million in charges and impairments, largely due to the sale of its Russia assets, and the impairment of assets in Ukraine.
Shares of Halliburton were up 3.6% in early trading to $35.81 each. U.S. oil futures were up about 1% to $85.47.
"Halliburton continues to benefit from momentum in activity/exposure to pressure pumping in North America, along with higher contribution from international operations," wrote analysts for investment banking firm Jefferies in a note.
The company said it had retired some $1.2 billion in debt so far this year and had paid down $2.4 billion in debt since 2020. It said it is in discussions with its board on increasing returns to shareholders.
Market leader Schlumberger (NYSE:SLB) reported its strongest quarterly profit since 2015, while Baker Hughes Co posted an adjusted third-quarter profit that topped Wall Street estimates.