Halliburton Warns Of First-Quarter Profit Miss As Costs Rise
March 24 (Reuters) - Halliburton Co, the world's No. 2 oilfield services provider, warned that its first-quarter profit would likely miss analysts' expectations due to higher costs and weak demand in markets outside North America.
Shares of the company, which forecast higher revenue from its U.S. land operations, were up about 1 percent in early trading on the New York Stock Exchange.
The company expects its earnings per share to be in low-single digits in the quarter ending March, Chief Executive David Lesar said on a conference call on Friday.
Analysts on average expect earnings of 13 cents per share, according to Thomson Reuters I/B/E/S.
The rise in costs is essentially because of the company's move to reactivate more equipment and expand its headcount, in response to increased activity in shale fields across the United States. "By doubling this rate of activation and accelerating it to the front half of the year, we are in effect front loading much of the hit to income at the beginning of the year," Lesar said.
Halliburton said it planned to hire over 2,000 field employees in its U.S. land operations by the end of the quarter. The company also said it was being impacted by higher costs for sand - used to keep wells open after fracking. U.S. shale producers have rapidly ramped up drilling over the past six months, encouraged by a near 50 percent rise in oil prices since February 2016, when they hit 13-year lows.
Halliburton said it expected its first-quarter revenue from its U.S. land operation to surge by 25 percent from the fourth quarter.
Activity in international markets in contrast remains sluggish, and an "inflection" is unlikely until later in the year, Lesar said.
(Reporting by Swetha Gopinath in Bengaluru; Editing by Martina D'Couto and Anil D'Silva)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension