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Oil & Gas

Halliburton shares fall after 2Q earnings miss estimate, although revenue meets expectations

The Houston-based oilfield service provider's quarterly revenue rose 24% as higher oil prices encouraged US oil and gas producers to put more rigs to work

Shares of oilfield services provider Halliburton Co (NYSE:HAL) declined in premarket trade Monday after it posted mixed second-quarter results that failed to excite investors.

Houston, Texas-based Halliburton's stock fell 1.68% to US$44.44.

For the quarter ended June 2018, the company posted earnings of US$0.58 per share on revenue of US$6.1bn. The consensus earnings estimate was US$0.59 per share on revenue of US$6.1bn.

READ: Halliburton 1Q earnings jump on higher North America demand

The company’s total revenue grew 24% to US$6.15bn from US$4.96bn.

By operating segment, completion and production revenue rose 9% from the first quarter to US$4.2bn.

“Our completion and production division grew operating income by 34%, primarily driven by the strength of US land. Despite pricing levels that have yet to fully rebound from the recent down cycle, we are achieving outstanding margins,” said Halliburton Co CEO Jeff Miller in a statement.

The CEO said that margins in US onshore operations are closing in on what the company achieved during the previous peak in 2014.

“North America had a strong performance this quarter. This is the largest and fastest growing energy market in the world. On a year-to-date basis, we have grown revenues 47% year over year, while the US land rig count has increased 16%. US land achieved margins that are closing in on what we achieved during the previous peak in 2014,” said Miller.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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