October 17, 2011 – Halliburton (HAL) reported on Monday a stronger-than-expected 26% increase in third-quarter profit lifted by very strong demand in North America and a recovery in Canada and its other international markets.
The company’s chief Dave Lesar said in a statement the recent drop in oil prices and declines in equity markets have been “unsettling to investors,” however he predicted the company will remain on its long-term course as its international businesses recover and activity improves.
The world’s second-largest oilfield services company posted net income of $685 million, or 74 cents a share, compared with $545 million, or 60 cents a share, in the same quarter last year.
Excluding one-time items, the maker of exploration products for the energy sector earned 92 cents a share, matching average analyst estimates polled by Thomson Reuters.
Based in Houston, Texas, Halliburton reported revenue of $6.5 billion, up from $5.9 billion a year ago, beating the Street’s view of $6.39 billion. The company attributed the sales growth to gains in the Western Hemisphere.
“I am extremely pleased with our third quarter results, as we set company records for revenue and operating income,” Lesar said in a statement. “North America continues to deliver very strong growth in revenue and profitability, while international profitability recovered at the rate we expected.”
North America revenue and operating income increased 13% and 14%, with the region’s profit surpassing $1 billion for the first time in the company’s history. Strong activity in the Bakken, Eagle Ford, and Permian Basin areas, as well as season recovery in Canada, helped to boost the earnings.
Meanwhile, international sales showed “gradual recovery,” Halliburton said, increasing 7% from the prior quarter. The company set records for revenue in both its Latin America and Middle East/Asia regions.