Oilfield services company Halliburton reported a 9% sequential revenue growth in Latin America for the second quarter of 2023. The US$994 million revenue was driven by increased pressure pumping and wireline activity in Argentina, higher completion tool sales in Brazil, and upsurge in activity across various product service lines in Mexico.
Halliburton’s other geographic segments also showed progress. Revenue in North America for the same period was US$2.7 billion, marking a 2% decrease primarily due to decreased stimulation activity in U.S. land, partially offset by increased artificial lift activity in U.S. land, and increased activity in the Gulf of Mexico.
The International revenue for Q2 2023 was US$3.1 billion, a 7% sequential increase.
Europe/Africa segment showed a 5% sequential revenue increase, totalling US$698 million for Q2 2023. The Middle East/Asia region registered a revenue of US$1.4 billion for the same period, a 6% sequential increase.
Halliburton’s total revenue for Q2 2023 amounted to US$5.8 billion, up from US$5.7 billion in the first quarter of 2023, and net income for the same period was US$610 million, or $0.68 per diluted share. In comparison, the first quarter of 2023 saw a net income of US$651 million, or $0.72 per diluted share. Notably, adjusted net income for the second quarter, which excludes the loss on transactions in Argentina, was US$691 million, or $0.77 per diluted share.
Jeff Miller, Chairman, President, and CEO of Halliburton, stated, “Halliburton’s strong performance in the second quarter demonstrates the earnings power of our business. Total company revenue increased 14% and operating income grew 41% compared to second quarter of 2022 adjusted operating income.”
He added, “Oil and gas are critical to the global economy and meeting long-term demand requires sustained capital investment. I am confident in the strength and duration of this upcycle and Halliburton’s ability to outperform in it.”
Halliburton’s Completion and Production division registered Q2 2023 revenue ofUS $3.5 billion, a 2% sequential increase, and an operating income of US$707 million, a 6% rise. These results were attributed to increased completion tool sales worldwide, improved cementing activity, and a surge in pipeline services at the international level. Additionally, there was a rise in stimulation activity and well intervention services in the Gulf of Mexico.
The Drilling and Evaluation division reported Q2 2023 revenue of US$2.3 billion, a 2% increase from the previous quarter, and an operating income of US$376 million, also a 2% rise. This growth was primarily due to a surge in fluid services globally and higher drilling activity in the Western Hemisphere and Saudi Arabia.
Miller ended his remarks stating, “I am pleased with the $798 million of free cash flow generation in the second quarter. Our strong cash flow generation gives me confidence in our ability to return more cash back to shareholders as evidenced by the US$248 million of share repurchases this quarter.”