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Halliburton profit up 60% on cost cuts, demand recovery

Halliburton profit up 60% on cost cuts, demand recovery

FILE PHOTO: Halliburton’s campus in Houston, Texas, US May 18, 2017. (Photo: REUTERS/Daniel Kramer/File Photo)

HOUSTON, Texas: Halliburton on Tuesday (Jan 19) reported a 60 per cent rise in fourth-quarter adjusted profit compared with the third, as demand for oilfield equipment and services recovered slightly from the pandemic-driven fall-out in drilling activity and on the back of cost cuts.

While demand for equipment and services has recovered as global crude price averaged about US$45 per barrel in the last three months of 2020, service companies have been forced to provide steep discounts to clients. To cope, the companies have ruthlessly slashed costs.

"I am optimistic about the activity momentum I see in North America, and expect international activity to bottom in the first quarter of this year," Halliburton Chief Executive Officer Jeff Miller said.

Halliburton, which kicked off fourth-quarter earnings for service companies, said total revenue rose 8.8 per cent to US$3.24 billion from the third quarter, slightly above analysts' estimates of US$3.21 billion, according to Refinitiv IBES data.

Adjusted net income attributable to company rose to US$160 million, or 18 cents per share, in the three months ended Dec 31, from US$100 million, or 11 cents per share, in the third quarter.

Source: Reuters/kv

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