Halliburton dips in spite of rising oil work

 
City A.M. Reporter
BUOYANT oilfield activity in Russia, Saudi Arabia and Angola helped Halliburton narrowly beat expectations yesterday with a 17 per cent rise in third-quarter profit, but its US-listed shares slipped since its main competitors did even better.

The world’s second-largest oilfield services company has been chasing opportunities outside its traditionally dominant US market to better take on larger rival Schlumberger, which also topped estimates with quarterly profits.

“Our eastern hemisphere growth continues to lead our peer group,” said Halliburton chief executive Dave Lesar.

“Consistent with prior years, we expect the fourth quarter in the eastern hemisphere to be our strongest quarter of the year due to seasonal year-end software and equipment sales,” he added.

The international expansion has come at a cost. Lesar said the company has invested close to $1bn in recent years in a new Singapore facility and technology centers in Houston, Saudi Arabia and Brazil.

Third-quarter net profit rose to $706m (£437m) from $602m a year ago. Revenue rose five per cent to $7.47bn.

Halliburton executives warned last month of the restructuring impact along with a profit reduction of two to three cents per share due to flooding in Colorado oilfields.

The company said revenue grew two per cent in North America despite the floods, while adjusted operating income climbed four per cent on a seasonal recovery in Canada and deepwater drilling in the Gulf of Mexico.

Halliburton expects some of the logistical challenges from the flooding to linger into the current quarter.