Halliburton Company announced, on October 24, net income of US$716 million, or US$0.79 per diluted share, for the third quarter of 2023. This compares to net income for the second quarter of 2023 of US$610 million, or US$0.68 per diluted share and adjusted net income, excluding the loss on transactions in Argentina, of US$691 million, or US$0.77 per diluted share. Halliburton’s total revenue for the third quarter of 2023 was US$5.8 billion, same as the second quarter of 2023. Operating income was US$1 billion in the third quarter of 2023, a 3% increase when compared to the second quarter of 2023.
Jeff Miller, Chairman, President and chief executive officer (CEO), commented “Everything I see today strengthens my conviction in the long duration of this upcycle. Against this backdrop, we expect continued demand growth for oilfield services in 2024 and beyond.”
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“Halliburton delivered strong returns to our shareholders as demonstrated by more than US$500 million of free cash flow and repurchases of approximately US$200 million of common stock and US$150 million of debt during the quarter,” concluded Miller.
Halliburton said completion and production revenue in the third quarter of 2023 was US$3.5 billion, flat sequentially, while operating income was US$746 million, an increase of US$39 million, or 6%. Margins expanded sequentially, driven by international operations, while North American margins remained approximately flat to last quarter. These results were primarily due to increased stimulation activity internationally, higher cementing activity in the eastern hemisphere, and improved completion tool sales globally. The company said these increases were partially offset by lower pressure pumping services in North America.
Drilling and evaluation revenue in the third quarter of 2023 was US$2.3 billion while operating income was US$378 million, both flat sequentially. Higher fluids activity in the Middle East/Asia and Latin America and increased wireline activity in Latin America and Europe/Africa were offset by decreased drilling-related services, lower project management activity, and decreased software sales in Mexico.
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North America revenue in the third quarter of 2023 was US$2.6 billion, a 3% decrease sequentially. This decline was primarily driven by decreased pressure pumping services in U.S. land and lower well intervention services in the Gulf of Mexico. Partially offsetting these decreases was improved completion tool sales in the Gulf of Mexico.
International revenue in the third quarter of 2023 was US$3.2 billion, a 3% increase sequentially.
Latin America revenue in the third quarter of 2023 was US$1 billion, an increase of 5% sequentially. This increase was primarily due to increased pressure pumping services and fluids activity in Argentina, improved completion tool sales in Brazil, and higher project management and drilling-related services in Colombia and Ecuador. Partially offsetting these increases were lower software sales, decreased project management activity, and lower well construction services in Mexico.
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Europe/Africa revenue in the third quarter of 2023 was US$734 million, an increase of 5% sequentially. This increase was primarily driven by improved well construction services, higher completion tool sales, and improved wireline activity in Norway and higher completion tool sales in the Caspian area. Partially offsetting these increases was lower activity in Africa across multiple product service lines.
Middle East/Asia revenue in the third quarter of 2023 was US$1.4 billion, flat sequentially. Higher well construction in Iraq, increased drilling-related services and improved completion tool sales in Qatar, and higher pressure pumping and fluid services in Asia were offset by decreased activity across multiple product service lines in Kuwait and India.
