Q3 sales beat forecasts at Halliburton, sales spark
Shares in Halliburton sparked on Tuesday, after the US oilfield services giant posted above-forecast quarterly numbers and adopted a bullish tone looking forward.
Halliburton Co.
$33.59
13:28 20/10/26
The Houston-based firm said revenues in the three months to September end rose 1.8% to $5.7bn, ahead of Wall Street expectations for $5.6bn. Adjusted net income per diluted share rose to $0.60 from $0.55 a year earlier, beating forecasts for $0.58.
North America revenues fell 5% to $2.2bn, driven by lower pressure pumping services, but Middle East-Asia sales sparked 8% to $1.4bn, on the back of higher activity across multiple product service lines in Saudi Arabia and Kuwait.
The company was rocked by the outbreak of war in the Middle East, with the US-Iran conflict disrupting energy operations and delaying projects, as well as subdued demand in the US. However, looking ahead and Halliburton flagged the need to restore both inventories and production across the Middle East.
Chief executive Jeff Miller said: "We are another three months into one of the largest energy disruptions in history. I expect work to restore production, rebuild inventories and strengthen energy security will drive multi-year demand growth for oilfield services. Based on early outlook for 2027, I expect mid-single digit revenue growth and operating margins of about 15%, an approximate 200 basis point improvement.
"This outlook assumes a flat North America market and does not require any recovery in North America hydraulic fracking. To us, that recovery is purely upside."
As at 1400 BST, the stock was up nearly 5% in pre-market trading.