N. America boosts Halliburton’s 1Q result. Loss narrows
Oilfield services titan Halliburton reported a rise in its first quarter 2017 revenue, when compared to the first quarter of 2016. Net loss also narrowed significantly.
The company’s net loss was $32 million for the quarter, on a $4,28 billion in revenue. This time last year, Halliburton’s net loss was $2.4 billion, on a revenue of around $4,2 billion.
The company’s CEO Dave Lesar said the result was boosted by North America activity which “increased rapidly during the first quarter,”
He said the increase was highlighted by “our U.S. land revenue growth of nearly 30%, outperforming the sequential average U.S. land rig count growth of 27%.”
In the international markets, however, Lesar said activity declines due to seasonality were ”exacerbated by the current cyclical headwinds.”
International revenue in the first quarter of 2017 was $2.0 billion, an 8% decrease sequentially, resulting primarily from lower activity in completion tools, Landmark, fluid services and project management.
Latin America revenue in the first quarter of 2017 was $463 million, an 8% increase sequentially, driven by increased activity in well completion, fluid services and production solutions in Brazil, as well as pressure pumping, fluid services and project management in Mexico.
Europe/Africa/CIS revenue in the first quarter of 2017 was $604 million, an 11% decrease sequentially, resulting primarily from reduced well completion services and stimulation activity in Angola, weather-related reduced activity in the North Sea and Russia, and a decrease in drilling activity in Nigeria.
“First quarter revenue in North America increased 24% sequentially, significantly outperforming our largest peer. This result was primarily driven by increased activity in our pressure pumping and well construction product service lines. The first quarter is best described as one of change, but I love the opportunity that is developing in North America because our strategy is designed to take advantage of that opportunity,” said Jeff Miller, President.
“Eastern Hemisphere revenue declined by 12% sequentially, due to seasonality, reduced activity and pricing pressure. While we believe that the first quarter represents the bottom in the Eastern Hemisphere rig count, the full year average for 2017 will likely be only marginally higher than the full year average for 2016.
“We are in the midst of a unique and challenging cycle with very different dynamics between the North American and international markets. We are the execution company. I am excited by the activity I see in North America and confident in our ability to manage through any challenges in the international markets,” Miller said.