Halliburton ekes out Q3 profit thanks to cost management

Oilfield services provider Halliburton posted an unexpected profit in its third quarter earnings report on Wednesday, driven by higher capacity utilisation in North America and effective cost and working capital management.

The company also warned that it could be affected by weather-related down-times in fourth quarter activity, but it expects a recovery in the long-term as oil prices rise.

Since the February lows for crude oil, prices have almost doubled and analysts forecast that it will continue to creep up.

“As we look forward, we expect an increased commodity price to stimulate rig count growth. In the near term, we remain cautious around fourth quarter customer activity due to holiday and seasonal weather-related downtimes. However, it does not change our view that things are getting better for us and our customers," the company said in a statement.

"We believe the underlying fundamentals driving our industry are strengthening, and I am optimistic about Halliburton’s relative performance as we move into the new year,” the company's boss, Dave Lesar, added.

Halliburton's profit was $6m for just $0.01 per share for the quarter to September 30, after posting a $54m loss or $0.06 per share for the corresponding period last year.

Revenue dropped 31.3% to $3.83bn when compared to the comparable period of a year ago but roughly flat quarter-on-quarter.

Houston-based Halliburton guided towards fourth quarter results flat with the preceeding three months amid minimal year-end sales at its international arm and continued pricing pressures from customers.

Lesar said that it was an impressive showing considering the tumultous nature of the industry in recent years.

"I am pleased with our third quarter results given the devastation our industry has faced over the last two years. These results reflect the hard work and determination of our organization," Lesar said.

"We believe the underlying fundamentals driving our industry are strengthening, and I am optimistic about Halliburton's relative performance as we move into the new year," he added.