uploads///Segment Revenue

Analyzing Halliburton’s Revenue and Earnings in 3Q17

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Jan. 10 2018, Updated 2:00 p.m. ET

Halliburton’s revenue

From 3Q16 to 3Q17, Halliburton’s (HAL) D&E (Drilling and Evaluation) segment’s revenue rose ~15%. Increased drilling activity in the Middle East, North America, and Latin America led to higher revenue in 3Q17. The D&E segment’s revenue rose 4% on a quarter-over-quarter basis.

From 3Q16 to 3Q17, Halliburton’s C&P (Completion and Production) segment’s revenue rose 62.5%. Halliburton accounts for 11.1% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ fell 19% in the past year, while Halliburton fell 8% during this period.

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Net earnings comparison 

Compared to Halliburton’s net income of $361 million in 3Q17, Superior Energy Services’ (SPN) 3Q17 net loss was $57 million, while National Oilwell Varco’s (NOV) net loss was $27 million. Nabors Industries (NBR) recorded a net loss of $119 million in 3Q17.

Positive drivers

  • increased well completion and pressure pumping activity in Canada
  • higher utilization and better pricing in the US onshore business, which primarily benefited Halliburton’s pressure pumping business
  • increased pressure drilling activity and pumping services in the Eastern Hemisphere
  • increased activity in multiple product services lines in Latin America

Negative drivers 

  • decreased activity and pricing across Southeast Asia
  • lower project management activity in Iraq
  • a decline in the upstream activity in Angola

Next, we’ll  discuss how much the US rig count impacts Halliburton’s North America operations.

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