(Reuters) – Halliburton Co (HAL.N) on Tuesday reported a 33.5% jump in second-quarter profit from the previous three months, as a rebound in crude prices from pandemic lows buoyed demand for oilfield services.
Global crude prices climbed 18.2% in the quarter ended June 30 and are up about 37% since the start of the year. The bump in prices has helped bolster activity in the oilfield, with the U.S. rig count rising for the 11th straight month in June, according to Baker Hughes data.
There were 470 rigs at the end of the second quarter, compared with 417 at the close of the first quarter.
“The positive activity momentum we see in North America and international markets today, combined with our expectations for future customer demand, gives us conviction for an unfolding multi-year upcycle,” Halliburton’s Chief Executive Officer Jeff Miller said.
Shares were up about 2.7% in pre-market activity, trading around $19.89.
Halliburton said net income attributable to company rose to $227 million, or 26 cents per share, in the three months ended June 30, from $170 million, or 19 cents per share, in the first quarter. Wall Street analysts had anticipated earnings of 23 cents per share during the quarter.
The Houston-based company reported $3.707 billion in revenue for the second quarter, slightly missing revenue estimates of $3.735 billion , according to data from Refinitiv IBES data.
Still, analysts said the results were positive, pointing to the earnings beat and improved margins.
“The margin performance that buoyed results should be enough to drive relative outperformance for HAL (Halliburton) today,” analysts for investment firm Tudor Pickering & Holt Co wrote on Tuesday.