Various Halliburton equipment being stored at the equipment yard in Alvarado, Texas.
Cooper Neill | Reuters
Haliburton reported on Tuesday quarterly results that topped analyst expectations amid strong revenue from its North America business.
The oilfield services company posted a profit of 18 cents per share on revenue of $3.24 billion for the fourth quarter. Analysts expected earnings per share of 15 cents on revenue of $3.21 billion, according to Refinitiv.
Shares of Halliburton rose as much as 2.9% on the back of the news. Around noon ET, however, they were down 1.3%.
The company’s North America revenue grew by 26% to $1.4 billion when compared to the previous quarter due to increased drilling activity in the region. That increase offset lackluster growth from Halliburton’s international markets.
CEO Jeff Miller said in a statement he was “optimistic about the activity momentum” in North America, adding he expects international drilling to recover later this year.
“I believe our strategic priorities will allow us to continue generating industry-leading returns and strong free cash flow and solidify Halliburton’s role in the unfolding energy market recovery,” said Miller.
However, the company’s adjusted operating income for 2020 fell to $1.4 billion from $2.1 billion a year earlier.
Christopher Voie, an analyst at Wells Fargo, said Halliburton could face some headwinds moving forward as its valuation appears to be balanced moving forward.
Halliburton shares have fallen more than 14% over the past year. However, they have rallied 68% in the past three months as oil prices surge.