Halliburton beats profit forecast but warns on market weakness overseas

The world's second-largest oilfield service provider says while the US market has turned the corner, the international downward cycle is still going on.

Halliburton trailers, which store sand for hydraulic fracturing, stand at a Hess well site near Williston, North Dakota. the oilfield services firm has beaten profit estimates. Andrew Cullen / Reuters

Halliburton, the world’s second-biggest oilfield services provider, on Monday warned of weakness in markets outside North America, echoing comments made by it larger rival Schlumberger last week.

Halliburton reported a better than expected quarterly adjusted profit as oil producers put more rigs back to work in North American shale fields.

Shale producers, encouraged by a rise in crude prices after a slump of more than two years, have been drilling and completing more wells in North America.

“Despite the positive sentiment surrounding the North American land market, it is important to remember that our world is still a tale of two cycles,” said the chief executive Dave Lesar.

“The North America market appears to have rounded the corner, but the international downward cycle is still playing out.”

International markets are yet to recover with most oil companies reluctant to increase spending on expensive deepwater and mature oilfields.

Net loss attributable to Halliburton widened to US$149 million, or 17 cents per share, in the fourth quarter ended December 31, from $28m, or 3 cents per share, a year earlier.

The current quarter included impairment and other charges of $169m, compared with $282m last year.

Excluding items, the company earned 4 cents per share in the latest reported quarter, beating the average analyst estimate of 2 cents, according to Reuters.

The company’s revenue fell 20.9 per cent to $4.02 billion, missing analysts’ estimate of $4.09bn.

* Reuters

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