Halliburton reported higher third-quarter earnings, driven by international business, and was optimistic about demand in 2024. Net profit came to $716 million, up 32% year-on-year, according to a press release issued on Tuesday. On a per-share basis and excluding exceptional items, the data most closely followed by the market, it reached 79 cents, above the 77 cents expected by analysts. Sales were also up (+8%), at $5.8 billion, but slightly below Wall Street projections ($5.85).
Halliburton Global Growth
Geographically, all the Group’s operating regions outside North America reported growth, with a special mention for Latin America (+25% year-on-year). Brazil, Argentina, Ecuador and Colombia all contributed to this sales growth. North America remains Halliburton’s main sales region, but experienced a slowdown in the three months from July to September (-1%).
International profitability
CEO Jeff Miller, quoted in the press release, praised “the profitability of international business”. The Houston, Texas-based group improved its operating margin to 17.9%, compared with 16% for the same period last year. On a quarter-on-quarter basis, margins improved in the international Production Division, while they remained virtually unchanged in North America.
Encouraging prospects for 2024
“Everything I’m seeing right now reinforces my belief that this bull cycle is going to last,” said the executive, referring to rising oil production, spurred by record demand. “Against this backdrop, we expect demand for oilfield services to continue to grow in 2024 and beyond,” continued Jeff Miller.
Halliburton’s solid growth and encouraging outlook for 2024 reflect a dynamic parapetroleum sector. The company is benefiting from global growth, particularly in Latin America, and continues to improve its profitability. Demand continues to grow, which is positive for the oil and gas industry as a whole.
Final Analysis
Halliburton’s international growth and optimism for 2024 are positive signs for the oil and gas industry. This iconic company shows that global demand for oil services remains robust. Increased oil production and geographic diversification are key to this success. The sector continues to play a vital role in the global economy, and the short- and medium-term outlook is promising.
