Halliburton Beats Profit Estimates on Oilfield Services Demand in Latin America, Europe

Halliburton beats profit estimates on oilfield services demand in Latin America, Europe

(Reuters) – Halliburton  beat Wall Street estimates for first-quarter profit on Tuesday, as steady demand in Latin America ​and Europe helped offset a slowdown in activity in ‌the Middle East due to the Iran war.

Revenue in the U.S. oilfield services provider’s international segment rose slightly to $3.3 billion, driven by a ​22% jump in Latin America and an 11% ​rise in Europe and Africa.

Total revenue fell slightly to $5.4 ⁠billion during the quarter, as revenue from the Middle East ​declined 12.7% to $1.32 billion.

Halliburton and peers are yet to benefit from ​a surge in oil prices due to the disruptions caused by attacks on infrastructure in the Middle East and Iran’s effective closure of ​the Strait of Hormuz, as producers have taken a more ​cautious stance instead of increasing drilling.

The company said revenue from North America ‌fell ⁠4.5% to $2.14 billion during the quarter ended March 31, due to lower stimulation activity and decreased artificial lift activity.

Halliburton posted an adjusted profit of 55 cents per share for the ​three months ended ​March 31, ⁠compared with analysts’ expectations of 50 cents, according to estimates compiled by LSEG.

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The Middle East ​conflict had an impact of roughly 2 cents ​to ⁠3 cents on first-quarter earnings per share, Halliburton said.

Larger rival SLB  has flagged a 6-9 cent-per-share earnings hit, after the industry ⁠bellwether ​suspended travel and demobilized operations in the ​Middle East.

Halliburton’s shares were up marginally at $36.88 in premarket trade.