Page 5 - NorthAmOil Week 43 2022
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NorthAmOil COMMENTARY NorthAmOil
for the world’s largest oilfield services company”. $0.26 per share, on an adjusted basis. This rep-
resented an increase on $141mn in the same
Halliburton quarter of 2021, also coming in above analyst
Halliburton, for its part, reported a third-quarter projections of $0.24 per share, based on Refin-
net profit of $544mn, or $0.60 per share. This was itiv data.
an increase from $236mn, or $0.26 per share, in The company’s revenue for the quarter of
the same quarter of 2021. Analysts had expected $5.4bn represented a sequential increase of
the company’s earnings for the latest quarter to 6% over $5.0bn and a y/y increase of 5% com-
come in at $0.56 per share. pared with $5.1bn in the third quarter of 2021.
Halliburton’s total revenue for the third quar- While its North American revenue rose by 10%
ter of 2022 was $5.4bn, compared to total reve- sequentially to $942mn and international reve-
nue of $5.1bn in the second quarter of 2022. Its nue only grew by 4% sequentially, international
North American revenue rose 9% sequentially revenue nonetheless drove the company’s gains,
to $2.6bn and its international revenue grew by rising to $1.9bn.
3% sequentially to $2.7bn. “The macro outlook has grown increasingly
“Looking forward, we see activity increasing uncertain as the global economy is dealing with
around the world – from the smallest to the strong inflationary pressures, a rising interest
largest countries and producers,” Halliburton’s rate environment, and sizeable fluctuations in Halliburton’s
CEO, Jeff Miller, stated. He added that demand global currencies,” stated Baker Hughes’ CEO,
for oilfield services in North America was Lorenzo Simonelli. He added, however, that he equipment
stronger than he had ever seen at this point in expected many of the main challenges to have remains sold
the year. already passed, with a more positive outlook for
Indeed, Halliburton’s equipment remains the future. out for the
sold out for the remainder of 2022, according to Looking ahead, Baker Hughes anticipates
Miller, amid expectations that the market will double-digit revenue growth in its international remainder of
be tight next year. business next year, but only modest growth in
Halliburton’s performance has been nega- its North American business, with this driven 2022, according
tively affected by its withdrawal from Russia. largely by publicly owned operators. to Miller.
The company sold its Russian business to a Rus-
sian unit made up of its former employees in the What next?
country. For the nine months up to September The results illustrate a lot of the trends that con-
30, the company said it had recorded $366mn in tinue to play out across the oil and gas industry.
charges and impairments, largely owing to the E&P companies continue to exercise restraint,
sale of its Russian assets and the impairment of but a focus on efficiency means that oilfield
assets in Ukraine. activity is nonetheless on the up. There may yet
be further volatility but on the whole, the oilfield
Baker Hughes service giants appear to be optimistic about the
Baker Hughes’ third-quarter profit also exceeded near term, and the latest set of results backs up
analyst expectations, coming in at $264mn, or their expectations.
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