Halliburton Beats Expectations Despite Demand Challenges -- Updated

   Micah Maidenberg 
 

Halliburton Co. (HAL) was able to lift revenues and profits during the third quarter past expectations, but the company firm said demand for some of its key services came in weaker than anticipated.

Houston-based Halliburton said infrastructure constraints in North America and what it termed as customer "budget exhaustion" resulted in less demand for its completion services.

The company is active in the Permian Basin of Texas and New Mexico, which has been the center of the U.S. shale boom. Drillers are pumping so much oil and gas in the region that pipeline infrastructure there has been overwhelmed, leading to bottlenecks.

Halliburton's completion and production segment is its biggest, and through it the company provides tools, services and chemicals needed to stand up oil or gas assets.

The segment booked sales of $4.17 billion in the third quarter, up 15% compared to last year. But revenues from the unit were flat versus the second quarter. For North America, Halliburton said sales increase 18% to $3.74 billion. However, sales for the region declined slightly compared to the second quarter.

In prepared remarks, Halliburton chief executive Jeff Miller said the company believes the demand issues related to the company's completion offerings in North American are temporary. A range of demand catalysts, including higher commodity prices and expanding capacity, are in place, he added.

Overall, sales rose 13% to $6.17 billion for the quarter, beating than the $6.11 billion analysts expected, according to FactSet.

Halliburton reported profits of $435 million, or 50 cents a share, in the third quarter, up 19% compared to the same period last year. Analysts surveyed by FactSet predicted 49 cents a share.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

October 22, 2018 07:59 ET (11:59 GMT)

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