* Adjusted profit of $0.04 vs est $0.03
* Revenue rose 1.9 pct to $4.28 bln vs est $4.26 bln
* North America revenue rises 24.4 pct
(Adds executive comments)
By Arathy S Nair and Swetha Gopinath
April 24 Halliburton Co said on Monday
that oil producers are completing nearly as many wells as they
are drilling, a major reversal from when companies left wells
unfinished in anticipation of higher oil prices.
Increased demand for Halliburton's pressure pumping and
well-construction services helped the world's No.2 oilfield
services provider report slightly better-than-expected quarterly
profit and revenue.
Halliburton's shares were up more than 1 percent at $47.72
in morning trade on Monday.
"There's no doubt that the pace of completions activity is
catching up with the rig count, and we expect to see that
relationship continue into next quarter, most certainly,"
interim Chief Financial Officer Robb Voyles said on a
Halliburton's long-time chief financial officer, Mark
McCollum, is taking up the role of chief executive at smaller
rival Weatherford International Plc.
U.S. shale producers have been putting more rigs to work,
buoyed by oil prices that have stabilized above $50 after a more
than two-year slump.
And since the fourth quarter of 2016, oil producers have
also returned to complete wells they had left unfinished during
the downturn on hopes of bringing them online when prices rose.
Halliburton said on Monday it expects revenue in its
completion and production unit to increase in the upper teens in
percentage terms in the second quarter, with margins expected to
increase by 275-325 basis points.
The company's revenue from North America rose 24.4 percent
in the first quarter ended March 31.
"North America activity increased rapidly during the first
quarter, which was highlighted by our U.S. land revenue growth
of nearly 30 percent, outperforming the sequential average U.S.
land rig count growth of 27 percent," Halliburton's Chief
Executive Dave Lesar said in a statement.
However, Halliburton and larger rival Schlumberger
have been burdened by the costs associated with reactivating
idled equipment to meet the increase in demand.
Halliburton's reactivation costs are expected to persist
into the second quarter, President Jeffrey Miller said on the
The company on Monday posted an adjusted profit of 4 cents
per share, edging past analysts' average estimate of 3 cents,
according to Thomson Reuters I/B/E/S.
Analysts had sharply lowered their estimates after
Halliburton warned last month of higher costs and weak demand in
markets outside North America.
Revenue rose 1.9 percent to $4.28 billion, inching past
analysts' average estimate of $4.26 billion, according to
Thomson Reuters I/B/E/S.
(Reporting by Arathy S Nair in Bengaluru; Editing by Sriraj