Oct 20 (Reuters) – Halliburton topped Wall Street expectations for third-quarter revenue and profit, as higher demand for its oilfield equipment in Latin America helped offset muted activity in North America and subdued revenue in the Middle East and Asia.
Shares of the company, which kicked off the earnings season for US oilfield service providers, were up 4.6% in premarket trading on Tuesday.
Halliburton expects mid-single-digit revenue growth in 2027 and operating margins of about 15%, an improvement of around 200 basis points from this year’s estimates.
The forecast assumes a flat North American market and does not require a recovery in US hydraulic fracturing activity.
Total revenue rose 1.8% to $5.7 billion in the third quarter, beating analysts’ estimates of $5.6 billion, according to data compiled by LSEG.
Quarterly revenue in Latin America increased nearly 12.6% to $1.1 billion, while revenue from Europe and Africa jumped 22.7% to $1.02 billion, lifted by increased activity in Nigeria.
North American revenue fell 9% year over year to $2.16 billion, primarily due to lower pressure pumping activity in US land operations, while Middle East and Asia revenue was stagnant at $1.41 billion.
The US-Iran conflict has weighed on oilfield services companies with exposure to a key oil-producing region by disrupting operations, delaying project decisions and clouding spending prospects.
“We are another three months into one of the largest energy disruptions in history. I expect the work to restore production, rebuild inventories and strengthen energy security will drive multi-year demand growth for oilfield services,” Halliburton CEO Jeff Miller said in a statement.
The company gets about 25% of its total revenue from the Middle East.
Halliburton posted an adjusted profit of 60 cents per share for the three months ended September 30, compared with analysts’ average estimate of 58 cents.
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