Halliburton reports “flat” earnings for 3Q

Halliburton Company reported third quarter earnings of $435 million or 50 cents a diluted share. The Houston company with major operations in Duncan, Oklahoma and offices throughout the state considered revenue to be flat.

It’s a drop from the $511 million reported in the second quarter of the year when the earnings were 58 cents a share. Operating income was also down 9% to $716 million from the $789 million in the second quarter of 2018.

Still, Jeff Miller, President and CEO was pleased.

” Our team optimized our performance in North America in the face of short-term challenges, and the recovery of our international operations continued.”

The total company revenue was $6.2 billion which was considered “flat” from one quarter to the next.

“In North America, a combination of offtake capacity constraints and our customers’ budget exhaustion led to less demand than expected for completion services,” explained Miller. ” I believe that these are temporary issues, and that the catalysts for improving demand for services are clearly visible: supportive commodity pricing, expanding offtake capacity, building well inventory, and reloaded customer budgets.”

He still feels confident the company has the right strategy, technology and services to deliver industry-leading returns.

Completion and Production revenue in the third quarter of 2018 was $4.2 billion, essentially flat when compared to the second quarter of 2018, while operating income was $613 million, a decrease of $56 million, or 8%.

Drilling and Evaluation revenue in the third quarter of 2018 was $2.0 billion, essentially flat when compared to the second quarter of 2018, while operating income was $181 million, a decrease of $10 million, or 5%.

During the third quarter of 2018, Halliburton repurchased $200 million of common stock. Halliburton also repaid $400 million of debt that matured in the third quarter.

 

North America revenue in the third quarter of 2018 was $3.7 billion, a 2% decrease sequentially. This decrease was primarily driven by lower pricing for stimulation services in the United States land sector and reduced drilling fluids activity in North America, partially offset by increased activity in the production chemicals and artificial lift product service lines in the United States land sector.

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