Page 9 - NorthAmOil Week 29 2021

NorthAmOil PERFORMANCE NorthAmOil

Halliburton beats expectations

with second-quarter results

US OILFIELD services firm Halliburton reported by 4% to $2.1bn, which was attributed primarily
this week that it had achieved net income of to higher well construction activity, completion
$227mn, or $0.26 per share, in the second quar- tools sales and well intervention services across
ter of 2021, beating analyst expectations. all regions. But lower software sales across all
This marked an increase from net income of regions and decreased stimulation activity in
$170mn, or $0.19 per share, in the first quarter Latin America served to partially offset these
of the year. It was also a significant improvement gains.
on Halliburton’s net loss of $1.7bn in the second Halliburton’s chairman, president and CEO,
quarter of 2021, at the height of the first wave of Jeff Miller, sounded an optimistic note on the
the coronavirus (COVID-19) pandemic. company’s earnings call when discussing the
Halliburton is the The company, which is the second-largest longer-term outlook.
leading provider of oilfield services provider globally after Schlum- “We believe that we are in the early innings
hydraulic fracturing berger and the leader in the provision of hydrau- of a multiyear upcycle,” Miller said. “For the first
services. lic fracturing services, said both its North time in seven years, we anticipate simultaneous
American and international businesses had growth in international and North America mar-
continued to grow during the second quarter. Its kets, and this view guides our business objectives
revenue increased by 7% sequentially compared and expected outcomes.”
with the first quarter of the year to $3.7bn. Halliburton was not the only oilfield services
Halliburton’s North American revenue giant to report an improved quarterly perfor-
rose by 12% sequentially to $1.6bn. The com- mance this week. Baker Hughes announced
pany attributed this primarily to higher pres- on July 21 that its second-quarter revenue, at
sure pumping services, drilling-related work $5.1bn, was up 8% sequentially and 9% year on
and wireline activity onshore, as well as higher year. The company posted a second-quarter net
well construction activity in the Gulf of Mex- loss of $68mn, but this was an improvement on
ico. It noted, however, that reduced software both the $195mn loss a year ago and the $452mn
sales across the region had partially offset these loss in the first quarter of this year.
increases. Schlumberger is due to announce its quar-
Internationally, Halliburton’s revenue rose terly results on July 23.™

New data show strength of US crude exports

US DATA from the US Energy Information Admin- continues to hang over the market, new lock-
istration (EIA) and the Port of Corpus Christi downs tend to occur on a more piecemeal basis,
illustrate the resilience of the country’s crude oil making it easier to offset their impact.
exports in the face of the ongoing coronavirus Indeed, the impact of rising COVID-19 cases
(COVID-19) pandemic. and the OPEC+ agreement to ease production
The US exported record levels of crude last cuts was offset this week as market participants
year, despite the volatility in global markets tried to take advantage of crude prices hitting a
and the dip in demand caused by the first two-month low. West Texas Intermediate (WTI)
wave of the virus, which resulted in US oil prices fell to around $66.45 per barrel on July 19,
prices briefly turning negative in April 2020. but had rebounded to above $71 per barrel by the
Now, the EIA’s Weekly Petroleum Status end of the week.
Report shows that the most recent four-week Meanwhile, Texas’ Port of Corpus Christi – a
rolling average of US crude exports reached major oil and LNG export hub on the US Gulf
3.21mn barrels per day (bpd). While this is Coast – achieved a new record second quarter
slightly lower than the 3.51mn bpd reported and a record first half of the year, moving nearly
the previous week, it still marks an 16.5% 80.5mn tons (73.0mn tonnes) of cargo in the
increase on the 2.75mn bpd recorded in the first six months of 2021. The port’s first-half total
four weeks up to July 17, 2020. tonnage marked a 4.7% increase year on year,
The recent strength of crude exports can be including a 72% y/y rise in LNG exports and a
attributed in part to higher oil prices, which have 3.6% y/y increase in crude exports.
remained strong as various countries have cau- The port’s oil exports averaged 1.58mn bpd
tiously re-opened following the early waves of over the period, slightly above the 2020 full-year
the pandemic. While a threat of further volatility run rate.™

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