Halliburton's profits beat expectations on the back of steady drilling demand in North America

Halliburton's third-quarter profits surpassed Wall Street expectations on Tuesday thanks to the steady demand for oilfield equipment and service in North America.

The North America segment's quarterly revenue was $2.4 billion. This is the same as a year ago, but it's above analysts’ average estimates of $2.17billion.

Halliburton stated that the results were supported in part by the increased stimulation activity on U.S. soil and Canada and the higher completion tool sales as well as the increased wireline activity along the Gulf of America.

In premarket trading, the shares of this Houston-based firm were up 1.3% to $22,90.

SLB, a peer company, also exceeded expectations last week on the strength of North America's demand. However, it noted that drilling activity in North America is not expected to increase significantly due to high costs for production at certain shale-basins.

Baker Hughes data shows that the oil and gas rig counts in North America, which is an early indicator of future production, increased by 8 in the third quarter compared to the previous quarter.

While North American spending remains stable, the international market, which was long considered the next growth engine for the economy, has shown signs of uneven improvement, especially in the Middle East.

Halliburton has reported a 8% decline in revenues in the Middle East/Asia region.

In July, the company stated that its revenue from international sales in 2025 will be down by a mid-single-digit percentage compared to a year ago, due primarily to lower activity in Saudi Arabia, and Mexico.

According to LSEG, Halliburton's adjusted profit per share was 58 cents for the quarter ending September 30. This beat analysts' estimates of 50 cents. (Reporting and editing by Tasim Zaid in Bengaluru, Sriraj Kalluvila and Tasim Dhumal)

(source: Reuters)