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Home / Business / Halliburton sees signs of a rebound in prices, stock prices

Halliburton sees signs of a rebound in prices, stock prices



  FILE FILE: In a Halliburton shipyard in Williston, an oil production plant is idle.
FILE PHOTO: An oil production facility at a Halliburton plant in Williston, North Dakota, April 30, 2016. REUTERS / Andrew Cullen / File Photo

22. April 2019

By Debroop Roy and Arathy S. Nair

(Reuters) – Halliburton Co on Monday tried to convince investors that the weak prices that had undermined suppliers of oil field services over four years were near Turning Around One Corner

Better than expected revenue in North America, along with the company's claim that prices bottomed out, oilfield services giant stocks were up almost 5 percent higher after the first quarter results were released.

But analysts and investors were unconvinced by a teleconference following the profit with the management, which provided little hard evidence and left doubts about future pricing at a time when oil producers had cut investments.

Halliburton's shares were unchanged at midday trading.

"I do not think there was anything to get people off the sidelines," said Jennifer Rowland, analyst at brokerage Edward Jones, arguing that the company's comments were not what was needed to shift the mood in the industry.

"We are still hoping that the second half will look better," she said.

Halliburton and its larger competitor Schlumberger NV had to cope with a tightening of spending by US oil producers in response to shareholder pressure for higher returns after a period of high investment in shale.

Houston-based company known worldwide Its investments in post-war Iraq saw an 1

1 percent increase in foreign sales, driven by gains in Mexico, Argentina and the Middle East, where Schlumberger also made gains in the last week ,

Unlike its larger rival Halliburton, activity in its largest North American market was marginally higher, adding that demand for services would increase marginally over the next few quarters.

"We believe the worst price deterioration is behind us now." Halliburton CEO Jeff Miller said:

Schlumberger posted a 3 percent drop in North American sales of hydraulic fracking and drilling business last week.

Halliburton's regional sales decreased 7 percent to $ 3.3 billion in the three months ended March 31, but exceeded the $ 3.13 billion reported by Refinitiv, according to IBES data On average, estimated by five analysts

As expected, Miller predicted a further decline – a 6 to 10 percent decline in North American oil producer spending – below the Schlumberger-predicted decline of 10 percent.

The Company expects second-quarter margins to increase by 50 to 150 basis points in both the drilling and evaluation departments, as well as in the areas of completion and production.

Drilling and valuation revenues are expected to increase sequentially by a low single-digit amount, while completion and production are expected to increase in the mid single-digit range.

The company also reiterated its expectation that 2019 will see high single-digit growth in international markets.

Adjusted, it reached 23 cents a share, beating the average estimate of 22 cents. Revenue of $ 5.74 billion also surpassed a consensus of $ 5.53 billion.

(Reporting by Arathy S Nair and Debroop Roy in Bengaluru, Editing by Shounak Dasgupta)


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