HALLIBURTON, the world’s number two oilfield services provider, said there were no signs of a slowdown in drilling activity despite the recent 25 per cent fall in oil prices.
Halliburton’s shares rose about 2.5 per cent in early trading after the company reported a better-than-expected quarterly profit and raised its quarterly dividend.
“We believe industry fundamentals suggest that these lower prices are not sustainable,” chief executive Dave Lesar said on a post-earnings call.
Oil supply and demand would be back in balance in a “relatively short period of time”, he added.
Halliburton said revenue in north America grew nearly 22 per cent in the third quarter ended 30 September, while operating income climbed 38 per cent.
The company, which derives about half of its revenue from North America, also benefited from higher revenue in its international operations. Halliburton’s revenue rose about 18 per cent in the Middle East and Asia region – the highest increase among regions outside North America.
Net income attributable to the company rose 70 per cent to $1.2bn, or $1.42 per share.
Revenue rose 16 per cent to $8.70bn, beating the average analyst estimate of $8.53bn.
The company raised its quarterly dividend to 18 cents per share from 15 cents.