Halliburton Truns To Profit In Q2 On Strong North American Demand

(RTTNews) - Oilfield services company Halliburton Co. (HAL) reported Monday a profit in its second quarter, compared to a hefty loss last year, boosted mainly the absence of a one-time merger termination charge as well as strong demand in North America.

In pre-market activity on the NYSE, Halliburton shares were gaining 3.9 percent to $46.10.

Jeff Miller, President and CEO, said, "Overall, I am confident about Halliburton's ability to grow North America margins, and continue to maintain the run rate for our international business. Our strategy is working well and we intend to stay the course. We will continue to drive superior execution and remain focused on delivering best-in-class returns."

For the second quarter, net income attributable to the company was $28 million or $0.03 per share, compared to last year's loss of $3.21 billion or $3.73 per share. The prior year's result included a $3.5 billion merger termination fee related to the termination of the Baker Hughes deal.

Adjusted income, excluding a fair market value adjustment associated with an expected promissory note in Venezuela, was $201 million or $0.23 per share. These second quarter results include a $0.04 per diluted share impact from litigation settlements and one-time executive compensation charges.

On average, 32 analysts polled by Thomson Reuters expected earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.

Reported operating income was $146 million, compared to operating loss of $3.88 billion last year. Adjusted operating income was $408 million.

Total company revenue was $4.96 billion, higher than last year's $3.84 billion. Analysts expected revenues of $4.86 billion.

These positive results were primarily driven by continued strengthening of market conditions in North America, which were partially offset by pricing pressure internationally, the company noted.

Completion and Production division revenue increased from last year to $3.13 billion, primarily due to improved pressure pumping utilization and pricing in the United States land market.

Drilling and Evaluation division revenue grew with increased drilling activity in North America, Latin America, North Sea, and Russia, partially offset by pricing pressure across international markets.

Among regions, revenues from North America and Latin America were higher, while Europe/Africa/CIS as well as Middle East/Asia recorded weak results.

The company noted that North America revenue growth of 24% outpaced the average sequential U.S. land rig count growth of 21%, while its margins grew into the double digits.