Halliburton, Baker Hughes See Slight Pickup In N. America

Middle East Drives Earnings

Both Halliburton and Baker Hughes received nearly half of their revenue from outside North America in the fourth quarter.

Halliburton forecast double-digit growth in earnings per share in 2014, citing strong international demand.

"Halliburton's bullish outlook for 2014 should ease some concerns about the outlook for global E&P (exploration and production) spending in 2014," Barclays analysts said in a note to clients.

Barclays expects oil and gas companies to spend about $723 billion on exploration and production this year, an increase of 6.1 percent from 2013, according to a report released last month.

Baker Hughes said it expected the international rig count to grow by 10 percent this year.

Baker Hughes said its revenue from Middle East and Asia Pacific jumped 27 percent in the quarter, while Halliburton's revenue from the same regions climbed 13 percent.

Most of their gains in the Middle East are coming from Saudi Arabia, the world's largest oil exporter, which is lining up dozens of rigs this year to make up for supply disruptions in other countries, including Iran, Libya, Nigeria and Yemen.

Market leader Schlumberger, which gets almost 70 percent of its revenue from outside North America, posted a better-than-expected profit on Friday thanks to robust drilling activity in Saudi Arabia and the United Arab Emirates.


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