Halliburton Company (NYSE:HAL) reported second-quarter financial results that saw revenue grow 14% as both its divisions benefitted from increased activity in a strong market.
For the quarter ended June 30, 2023, the Houston-based oil services company posted adjusted earnings of $0.77 per share on revenue of $5.8 billion. The consensus earnings estimate was $0.75 per share, according to Zacks Investment Research, based on nine analysts’ forecasts.
In a statement, the company’s chairman, president and CEO Jeff Miller attributed the strong 2Q performance to the earnings power of its business, with both divisions delivering strong margin performance across all regions.
"Oil and gas are critical to the global economy and meeting long-term demand requires sustained capital investment,” Miller commented.
“I am confident in the strength and duration of this upcycle and Halliburton’s ability to outperform in it."
Halliburton’s Completion and Production division reported revenue of $3.5 billion, up 19% from a year earlier, with operating income increasing by 42% to $707 million. The results were driven by increased completion tool sales globally, higher artificial lift activity in North America, improved cementing activity and higher pipeline services internationally, and higher stimulation activity and well intervention services in the Gulf of Mexico.
Revenue from its Drilling and Evaluation division increased by 7% year-over-year to $2.3 billion while operating income rose 31% to $376 million.
It attributed the performance to an increase in fluid services globally, and higher drilling activity in the Western Hemisphere and Saudi Arabia. These increases were partially offset by lower software sales in North America and the Eastern Hemisphere and decreased project management activity in Saudi Arabia.
"I am pleased with the $798 million of free cash flow generation in the second quarter,” Miller added.
“Our strong cash flow generation gives me confidence in our ability to return more cash back to shareholders as evidenced by the $248 million of share repurchases this quarter.”
The company’s shares were down 2.3% at $37.25 in pre-market trading.
Contact the author at stephen.gunnion@proactiveinvestors.com