Halliburton Co. is predicting years of growing demand for oil field services as nations in the Middle East rebuild energy assets and infrastructure damaged in the Iran war. CEO Jeff Miller stated the company is three months into one of the largest energy disruptions in history, expecting the restoration of production and energy security to drive multi-year demand. The company forecasts mid-single digit revenue growth and 15% operating margins, assuming a flat North American market.
In the third quarter, Halliburton's biggest revenue boost came from the Middle East/Asia region, earning $1.4 billion—an 8% jump from the previous quarter—driven by higher activity in Saudi Arabia and Kuwait. Rising oil prices have motivated US shale producers to expand drilling, with the rig fleet averaging 451, up 8.4% year-over-year. Halliburton reported adjusted operating income of $731 million, beating estimates, and shares rose 6.4% in pre-market trading.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing