New York (AFP) – Halliburton offered an improved outlook on North American oilfield activity Wednesday, posting a tiny quarterly profit that showed continued drag from a petroleum industry downturn.
The US oil services giant, a player in the hydraulic fracturing behind the US shale boom, said North American activity improved in the third quarter with a higher rig count as oil prices stabilized.
“I am pleased with our third quarter results given the devastation our industry has faced over the last two years,” Halliburton chief executive Dave Lesar said in a statement.
“We believe the underlying fundamentals driving our industry are strengthening, and I am optimistic about Halliburton’s relative performance as we move into the new year,” he said.
The company’s share price rose 5.1 percent to $49.46 in mid-morning trading.
Halliburton reported a scant $6 million in third-quarter net profit, up from a $54 million loss in the year-ago period.
Revenues were flat at $3.8 billion.
Oil services companies have been big losers in the last two years due to an industry slump that pushed US oil prices below $30 a barrel in February, causing large petroleum producers to cut tens of billions of dollars in investment.
The downturn prompted Halliburton to announce a deal in 2014 to acquire rival Baker Hughes for $34.6 billion, but the transaction died in May due to opposition from antitrust regulators.
Oil prices have since returned to the $50 range in the wake of a preliminary agreement last month by the Organization of Petroleum Exporting Countries to cut output.
Halliburton said activity remained depressed in many international markets, including in Asia Pacific, Nigeria, Angola, Continental Europe and Latin America.
And the North American market, while improving, failed to turn an operating profit in the third quarter.
Halliburton has responded by cutting some 27,000 jobs since peak employment levels in 2014.
Lesar said he was “cautious” about fourth quarter activity due to holiday and weather-related downturns, but “things are getting better for us and our customers.”
COMMENTS
Please let us know if you're having issues with commenting.