Houston’s oil giant Halliburton beats profit estimates, forecasts recovery by Q2, '21

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Houston’s oil giant Halliburton beats profit estimates, forecasts recovery by Q2, '21

On Tuesday, Halliburton Co., the Houston, Texas-based one of the world’s largest oil field services provider operating across 70 countries, had beaten profit estimates for Q4, 2020 while witnessing a modest gain in activities, while the fossil-fuel industry mammoth had forecasted a sharp rebound in activities on global oil and natgas industry as early as by the second quarter of 2021.

In point of fact, Halliburton’s earnings’ report for Q4, 2020, came against the backdrop of a decent rise in crude oil prices later last year, as both Brent and US crude oil futures’ prices had sharply pulled back in late-2020 from a pandemic-induced slump with UK crude contracts holding to gains around $55 per barrel after averaging at roughly $45 per barrel over the last three months of 2020.

Halliburton projects an upturn in North American oil industry activities

Aside from that, Halliburton Co. was quoted saying at its quarterly earnings’ report for Q4, 2020, revealed earlier in the day, that, the Houston-headquartered oil industry giant had witnessed a 25.8 per cent jump in revenues from North American business over last three months of 2020, while revenues from Halliburton’s global operations edged 0.4 per cent higher over its fiscal fourth quarter of the year that ended on December 31, 2020.

In factuality, similar to many of its American peers, Halliburton had weathered the pandemic-led downturn in activities by cutting capital expenses alongside workforces, while the cost cuts alone had helped the company to free up a cash flow of $1.15 billion last year, up from a forecast of $1 billion announced earlier last year.

Nonetheless, still, Halliburton had witnessed a steep plunge of 43.9 per cent in profits and 37.6 per cent in revenues on Q4, 2020, compared to the same time a year earlier. However, Halliburton’s revenues on Q4, 2020, rose to $3.24 billion, beat an analysts’ estimate of $3.21 billion, while the Houston-based oil giant’s net income has been 18 cents per share, roughly 3 cents up from Wall Street estimates on an average.

Meanwhile, adding that the global oil industry would witness more consolidations over the coming months, Halliburton Chief Executive Jeff Miller said in a post-earnings conference call with the reporters, “We view 2021 as a bit of a transition year, and 2022 is when we see the global rebalancing of supply and demand”.

After climbing as much as 6 per cent in morning US trading hour, shares’ prices of the oil drilling and gas wells company Halliburton wrapped up the day 0.29 per cent lower to $20.67 amid renewed pandemic-led lockdowns.