Halliburton Company announced on Tuesday that its second quarter (Q2) revenue increased 7% sequentially as both North America and international markets continued to improve, and operating income grew 17% with solid margin performance in both divisions.
The company recorded net income of $227 million for Q2 2021 compared to net income of $170 million in Q1. Its total revenue for Q2 was $3.7 billion, compared to revenue of $3.5 billion in the first quarter of the year. Operating income was $434 million in Q2 compared to $370 million in Q1.
“Our second quarter performance demonstrates that our strategy is working well, and Halliburton’s strategic priorities are driving value in this transition year,” said Jeff Miller, Chairman, President and CEO.
The company said international revenue in Q2 was $2.1 billion, a 4% increase over Q1. This improvement was primarily driven by higher well construction activity, completion tools sales, and well intervention services across all regions. Partially offsetting these increases were lower software sales across all regions and decreased stimulation activity in Latin America.
Halliburton said Latin America revenue in Q2 was $534 million, flat sequentially. “Increased activity in multiple product service lines in Mexico, higher fluid services in Brazil, as well as additional completion tools sales in Guyana, were offset by reduced stimulation activity in Argentina, Mexico, and Brazil, lower software sales across the region, and decreased project management activity in Mexico and Ecuador.”
It was announced earlier this month that TechnipFMC and Halliburton had received an OTC Spotlight on New Technology Award® (SONT) for their Odassea™ Subsea Fiber Optic Solution, an advanced downhole fiber optic sensing system. U.S. oil major ExxonMobil selected the solution for its Payara development project in Guyana. The award followed completion of front-end engineering and design studies and qualifications.
The Odassea service integrates hardware and digital systems to strengthen capabilities in subsea reservoir monitoring and production optimization. Halliburton provides the fiber optic sensing technology and analysis for reservoir diagnostics. TechnipFMC provides the optical connectivity from the topside to the completions.
The company has also confirmed that by the end of this year close to 100% of its services will come from Guyana where it has been operating since 2015. The Oil field service company has been steadily expanding its activities in the South American country which has seen the establishment of state-of-the-art facilities, including one of the largest mud plants in the hemisphere, and expansion of its local workforce.