Halliburton cashes in on E&P boom
Oilfield services giant Halliburton saw its first-quarter profit rise by 6% as
customers in markets including the Middle East and Asia spent more on oil
and gas exploration and production.
Profit for the oilfield services company, which has headquarters in Houston
and Dubai, increased to $584 million, or 64 cents per share, from $552
million, or 54 cents per share, a year earlier.
Analysts on average had expected a profit of 64 cents, according Reuters
Estimates.
Revenue rose 18% to $4 billion.
In North America, Halliburton's revenue rose 11% to $1.86 billion while
operating income was nearly flat at $491 million.
Halliburton said revenue outside North America soared 24% to $2.16 billion,
while operating income rose 21% to $422 million.
Company boss Dave Lesar said he expects its customers would increase drilling
in North America in the second half of 2008 if natural gas prices stayed
high.
"Looking forward, our North America customers are telling us that with
continued strong natural gas fundamentals, they will be reevaluating their
drilling plans for the second half of the year," Lesar told investors on a
conference call.
He also said that fuel costs were weighing on US profit margins, but the
company is working to offset those costs.
In its international business, Lesar said the company's profit margins have
not peaked, and the overall environment is competitive.
21 April 2008 12:41 GMT
| last updated:
21 April 2008 13:52 GMT
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