Halliburton reported quarterly results on Tuesday that exceeded analysts’ expectations posting a profit of 18 cents per share on revenue of $3.24 billion for the fourth quarter (Q4) of 2020. According to Refinitiv, analysts expected earnings per share of 15 cents on revenue of $3.21 billion.
The company said its Latin America revenue in Q4 2020 was $426 million, a 12% increase sequentially, resulting primarily from increased pressure pumping and wireline activity in Argentina, and activity increases in multiple product service lines in Colombia and Ecuador, as well as higher fluids sales in Guyana and drilling services in Brazil. These increases, Halliburton said, were partially offset by reduced activity across multiple product service lines in Mexico.
The company has been steadily expanding its activities in Guyana since setting up operations in 2015 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.
Meanwhile, North America revenue in Q4 2020 was $1.2 billion, a 26% increase when compared to the third quarter of 2020. The company said this increase was driven by higher activity in stimulation and artificial lift in U.S. land, as well as higher well construction and wireline services activity, and year-end completion tools and software sales.
For Q4 2020, the company reported a net loss of $235 million, or $0.27 per diluted share. This compares to a net loss for Q3 2020 of $17 million, or $0.02 per diluted share. Adjusted net income for Q4 2020, excluding impairments and other charges, was $160 million, or $0.18 per diluted share. The company said total revenue for Q4 2020 was $3.2 billion, a 9% increase from revenue of $3.0 billion in Q3.
“Total revenue for the full year of 2020 was $14.4 billion, a decrease of $8.0 billion, or 36% from 2019. Reported operating loss for 2020 was $2.4 billion, compared to reported operating loss of $448 million for 2019,” Halliburton said.
Excluding impairments and other charges, adjusted operating income for 2020 was $1.4 billion, compared to adjusted operating income of $2.1 billion for 2019.
“I am pleased with our solid execution in the fourth quarter and for the full year. Our swift and decisive cost actions and service delivery improvements reset our earnings power, delivering strong margins and cash flow. We also achieved historic bests in safety and service quality,” said Jeff Miller, Halliburton’s Chairman, President and CEO.
Miller said he is optimistic about the activity momentum in North America and expect international activity to bottom in the first quarter of this year. “I am also encouraged by the growing pipeline of international customer opportunities and the unfolding global activity recovery,” he said.
The CEO said he believes the company’s strategic priorities will allow it to continue generating industry-leading returns and strong free cash flow and solidify its role in the unfolding energy market recovery.