Halliburton Beats Expectations Despite Demand Challenges -- Updated
October 22 2018 - 8:14AM
Dow Jones News
Micah Maidenberg
Halliburton Co. (HAL) was able to lift revenues and profits
during the third quarter past expectations, but the company firm
said demand for some of its key services came in weaker than
anticipated.
Houston-based Halliburton said infrastructure constraints in
North America and what it termed as customer "budget exhaustion"
resulted in less demand for its completion services.
The company is active in the Permian Basin of Texas and New
Mexico, which has been the center of the U.S. shale boom. Drillers
are pumping so much oil and gas in the region that pipeline
infrastructure there has been overwhelmed, leading to
bottlenecks.
Halliburton's completion and production segment is its biggest,
and through it the company provides tools, services and chemicals
needed to stand up oil or gas assets.
The segment booked sales of $4.17 billion in the third quarter,
up 15% compared to last year. But revenues from the unit were flat
versus the second quarter. For North America, Halliburton said
sales increase 18% to $3.74 billion. However, sales for the region
declined slightly compared to the second quarter.
In prepared remarks, Halliburton chief executive Jeff Miller
said the company believes the demand issues related to the
company's completion offerings in North American are temporary. A
range of demand catalysts, including higher commodity prices and
expanding capacity, are in place, he added.
Overall, sales rose 13% to $6.17 billion for the quarter,
beating than the $6.11 billion analysts expected, according to
FactSet.
Halliburton reported profits of $435 million, or 50 cents a
share, in the third quarter, up 19% compared to the same period
last year. Analysts surveyed by FactSet predicted 49 cents a
share.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 22, 2018 07:59 ET (11:59 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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