Halliburton Earnings double amid soaring global crude oil demand

(Bloomberg) – Halliburton Co. beat profit expectations amid tight oilfield supply markets as the world’s largest frack service provider spurred increased activity around the world.

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The company reported adjusted earnings per share of 60 cents for the three months through September, well above the average estimate from analysts in a Bloomberg survey and more than double the figure. number one year earlier. Shares rose as much as 2.5% in pre-market trading.

“The structural need for additional oil and gas supplies will create strong headwinds for our business,” Chief Executive Officer Jeff Miller said in a statement announcing the results today. Tuesday. “In the future, we see increased activity around the world – from the smallest countries and manufacturers to the largest.”

Hired shale patchers are reaping the rewards of a tight market for workers and equipment as oil drillers expand production. Miller has warned that energy companies that don’t yet have equipment leased out could be in trouble until next year.

Halliburton boosted sales by more than a third to $5.4 billion, led by North America, which had the best revenue in three years.

“In North America, I see revenue continuing to grow – growth rates for calendar positions are stronger than I’ve ever seen at this time of year,” said Miller.

Larger rival SLB, which changed its name from Schlumberger on Monday, posted its best profit in seven years last week as a surge in service prices and increased activity spread out of the United States and Canada into other markets. international School. Baker Hughes Co., the No. 3 oilfield contractor, kicked off the industry’s earnings season Oct. 19 by beating expectations. Baker Hughes said fourth-quarter earnings per share will increase by 50% on a sequential basis.

In a complete reversal from just a few years ago, Halliburton currently spends 80% of its fleet production efforts in Duncan, Okla., on refurbishment and just 20% on new construction. It’s an example of how oilfield service providers are manipulating equipment supply growth to increase the prices they can charge. According to research by Kimberlite International Oilfield Research, the total cost of mining is expected to increase by 27% this year.

Last month, Halliburton announced it had completed the sale of its business in Russia to a group of former employees based in the country. Baker Hughes is also working to finalize the sale of its oilfield services business before the end of the year, while SLB says its unique company structure allows it to continue working in Russia without breaking the bank. violate sanctions.

(Sales update in fifth paragraph.)

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