Drilling services provider Halliburton Company (HAL) reported earnings for the second quarter that met analysts’ estimates while exceeding on revenue expectations. The company posted a 24% increase in revenue to $6.15 billion driven by strong market conditions in North America.
Profit for the quarter jumped to $511 million or $0.58 per share from $28 million or $0.03 per share last year, which included impairments and other charges related to a write-down of all of its remaining investment in Venezuela.
On a sequential basis, Halliburton made good progress in North America in the second quarter with revenue jumping 9% to $3.8 billion due to higher activity throughout the US land sector within the majority of its product service lines. Lower pressure pumping activity in Canada and reduced drilling fluid activity in the Gulf of Mexico hurt the revenue in North America.
International revenue rose 4% sequentially, resulting primarily from increased drilling services and project management activity in the Middle East, as well as higher project management activity and software sales in Mexico. On a sequential basis, Europe/Africa/CIS, Latin America, and Middle East regions also reported higher revenues with increases of 1.4%, 5%, and 6% respectively.
As the company has been reporting double-digit increases in its North America region over the last five quarters and is becoming more reliant on this region, it doesn’t bode well for Halliburton’s growth in the coming quarters. The company will have to look for growth opportunities in other regions as well to reduce its reliance on North America.
The company’s Completion & Production division grew revenue 9% while operating income climbing 34%. Improvements were led by higher pressure pumping and artificial lift activity in the US land sector.
Drilling & Evaluation revenue rose 3% from last quarter while operating income improved 2%.
Halliburton shares ended Friday’s regular trading session up 0.53% at $45.20 on the NYSE.