"We are another three months into one of the largest energy disruptions in history," CEO Jeff Miller said Tuesday. "I expect the work to restore production, rebuild inventories and strengthen energy security will drive multi-year demand growth for oil field services."
By 11:06 a.m. in New York, the shares were up 1.2%. As the first of the three major international oilfield service providers to report quarterly results, Halliburton sets the early read while the industry navigates fallout from Middle East conflict and Russia's war in Ukraine.
Third quarter adjusted operating income came in at $731 million, a touch above the $729.9 million consensus. The largest lift came from the Middle East and Asia, where revenue reached $1.4 billion, an 8% increase from the prior quarter, largely attributable to intensified work in Saudi Arabia and Kuwait.
Miller said Halliburton is also winning more work across the region, including Iraq. The company expects Middle East revenue in the fourth quarter to exceed both the third quarter and the same period last year.
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Chief Operating Officer Shannon Slocum said Halliburton is "open for business" in Venezuela. "Our management team is in place, our facilities are open, key equipment has moved," he said, noting the company generated revenue in "multiple product lines" in the third quarter and expects "solid growth moving forward."
The company recently signed non-binding agreements with Eneva SA and West-Construcciones CA to support Venezuelan oil and gas projects. In 2020, Halliburton halted its main operations in the country as US sanctions tightened.
Next year, Halliburton anticipates revenue growth in the mid-single digits and operating margins around 15%, up from 13%. The forecast assumes a flat North America market and does not factor in any rebound in regional fracking.
With the Iran war pushing crude above $100 a barrel, US producers have taken steps to lift output. The average US oil rig count was 451 in the third quarter, up 8.4% from a year earlier, while overall shale production is only about 1% higher since the war began. For read-through across the group, SLB reports Friday, followed by Baker Hughes Co. on Oct. 27.
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