Halliburton says prices fall as US activity rises

Halliburton said Monday that a drop in prices that had affected the oil services sector had fallen to its lowest level, after recording slightly higher activity levels in North America in the first quarter compared in the previous year.

Oil service providers are fighting a tightening of spending by US oil producers, which is holding back new drilling in response to shareholder pressure for better returns after a period of heavy investment.

Shares of the company rose 2.8% to $ 32 before the bell.

Contrary to comments from leading oil service provider Schlumberger last week, Halliburton said that activity on its largest market in North America was slightly higher, adding that demand for its services would rise modestly over the next two years. quarters.

"We think the worst in price deterioration is now behind us," said Jeff Miller, Halliburton's chief executive officer, adding that prices had been negatively impacted during the quarter.

Last week, Schlumberger charged a 3% drop in its quarterly revenue in North America to lower pricing and lower activity from its hydraulic fracturing and drilling operations.

The company had also forecast a 10% decline in oil-producing investments off the coast of North America by 2019, adding that the region's overall production growth outlook could likely be lowered.

The number of active drilling rigs in North America has decreased over the past four months and production growth in the Permian and other major shale basins has slowed due to falling prices oil in the fourth quarter.

Pipeline carrying capacity constraints have also forced oil producers to slow down drilling and production.

Halliburton's revenue in North America declined 7 percent to $ 3.3 billion in the three months ended March 31, but exceeded $ 3.13 billion estimated by an average of five badysts, according to data. IBES of Refinitiv.

International business revenue grew 11% and the company reiterated its expectations for high single digit growth for 2019.

The total business figure remained broadly stable at $ 5.74 billion.

Net income attributable to Halliburton reached $ 152 million, or 17 cents per share, in the first quarter, up from $ 46 million, or 5 cents a share, a year earlier.

On an adjusted basis, the Houston-based company gained 23 cents a share, exceeding the badysts' average estimate of 22 cents.