Halliburton announced strong second quarter results which saw profits and revenues jump on the back of big growth in the North American market.
The Houston based company revealed that profits for the Q2 hit US$739mn, an increase over Q1 profits of US$480mn. The company explained that the first quarter results were negatively impacted by US$46mn related primarily to reserving certain assets as a result of political sanctions in Libya.
Halliburton's consolidated revenue in the Q2 of 2011 was US$5.9 billion, compared to US$5.3 billion in the first quarter of 2011. While, consolidated operating income was US$1.2 billion in Q2, compared to US$814mn in the first quarter of 2011.
Dave Lesar, chairman, president, and chief executive officer, commented: "North America continues to deliver very strong growth in revenue and profitability, while international profit recovered modestly. As a whole, our level of operating margin was the highest it has been since 2008."
Lesar went onto discuss the company's international operations: "International revenue grew eight per cent from the prior quarter, with 18 per cent operating income growth. Strong sequential operating income improvement was driven by seasonal recovery in the North Sea and Russia as well as improved activity in Latin America and Asia. However, the shutdown in Libya, project delays in Iraq and the sluggish market in Algeria have impacted the pace of recovery for our international results."
Halliburton revealed operating results as well. Completion and Production (C&P) revenue in Q2 was US$3.6 billion, an increase of US$446mn, or 14 per cent, from the first quarter of 2011. Middle East/Asia C&P operating income rose as higher activity across all product service lines in Saudi Arabia and Australia offset lower completion tools sales in Malaysia.
Drilling and Evaluation (D&E) revenue in the second quarter of 2011 was US$2.3 billion, an increase of US$20mn, or 10 per cent, from the first quarter of 2011, with all regions experiencing revenue growth. Middle East/Asia D&E operating income was flat, as higher direct sales in China and Kuwait offset contract delays in Iraq.
Lesar concluded that: "Robust growth in global energy demand supports the continuing need to develop new hydrocarbon resources and provides us with strong growth opportunities."
