Business/economics

Revenue Rises for Service Companies as Halliburton Reports a Slight Profit

Second-quarter financial results show a modest improvement for the industry’s three largest oilfield services companies.

jpt-2017-07-service2q-hero.jpg
Getty Images

Major oilfield services companies Halliburton, Schlumberger, and Baker Hughes reported increased revenue for the second quarter of 2017 compared with the first quarter, with revenue up by 15.8% for Halliburton, 8.2% for Schlumberger, and 6.3% for Baker Hughes. Halliburton earned a slight profit while the two other companies posted net losses.  

Halliburton reported net income in the second quarter of USD 28 million, or 0.03 per share, on revenue of 4.96 billion, compared with a net loss of USD 32 million, or 0.04 per share, on revenue of 4.28 billion in the first quarter. The latest quarter’s results were a strong improvement from the second quarter of 2016, when the company posted a net loss of USD 3.21 billion, or 3.73 per share, on revenue of 3.83 billion.

Schlumberger recorded a second-quarter net loss of USD 74 million, or 0.05 per share, on revenue of 7.46 billion, compared with first-quarter net income of USD 279 million, or 0.20 per share, on revenue of 6.89 billion. In the 2016 second quarter, the company posted a net loss of USD 2.16 billion, or 1.56 per share, on revenue of 7.16 billion.

Baker Hughes posted a second-quarter net loss of USD 179 million, or 0.42 per share, on revenue of 2.40 billion, compared with a first-quarter net loss of USD 130 million, or 0.30 per share, on revenue of 2.26 billion. In the year-ago quarter, the company reported a net loss of USD 912 million, or 2.08 per share, on revenue of 2.41 billion.

The second-quarter 2017 earnings statement is Baker Hughes’ last as a separate company. The company merged with General Electric at the outset of the third quarter on 3 July.

North America Growth

Commenting on the most recent results, Halliburton Executive Chairman Dave Lesar said, “Our performance this quarter demonstrates that Halliburton is the execution company, and we are the leader in North America. North America revenue growth of 24% outpaced the average sequential U.S. land rig count growth of 21%, while our margins grew into the double digits. More broadly, we outperformed our major peer in every geo-market, demonstrating that we continue to grow our global market share.”

Schlumberger Chairman and CEO Paal Kibsgaard said of his company’s performance, “Our second-quarter revenue increased 8% sequentially while pretax operating income rose by 25%, resulting in earnings per share growth of 40%. Beyond seasonal effects, revenue grew in all of our groups and areas.”

He added, “We continue to be optimistic about the future of Schlumberger, as we maintain an attentive watch and flexible approach to the shape and pace of the emerging oil market recovery.”

Full earnings news releases for the three companies are available: