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Halliburton sees decline in Completion & Production revenue

Oil&Gas Materials 21 January 2020 19:02 (UTC +04:00)
Halliburton sees decline in Completion & Production revenue

BAKU, Azerbaijan, Jan.21

By Leman Zeynalova - Trend:

Completion and Production revenue of the US-bases Halliburton oil service company in the fourth quarter of 2019 was $3.1 billion, a decrease of $448 million, or 13 percent, when compared to the third quarter of 2019, Trend reports citing the company.

Halliburton said in its report that during the reporting period, its operating income was $387 million, a decrease of $59 million, or 13 percent.

“These results were primarily due to reduced activity and pricing in multiple product service lines in North America land, primarily associated with stimulation services, coupled with reduced stimulation services in Latin America and well intervention services in the Middle East. These declines were partially offset by increased pressure pumping activity in the Eastern Hemisphere, coupled with increased year-end completion tool sales globally,” reads the report.

The company said its North America revenue in the fourth quarter of 2019 was $2.3 billion, a 21 percent decrease when compared to the third quarter of 2019. “This decline was mainly due to reduced activity and pricing in North America land, primarily associated with pressure pumping and well construction. This decline was partially offset by increased year-end completion tool sales in the Gulf of Mexico.”

This is while Drilling and Evaluation revenue in the fourth quarter of 2019 was $2.1 billion, an increase of $89 million, or 4 percent, when compared to the third quarter of 2019, while operating income was $224 million, an increase of $74 million, or 49 percent, the report shows.

“These results were primarily driven by increased activity in all product service lines in Middle East/Asia, coupled with increased drilling activity in Europe/Africa/CIS and year-end software sales globally. These improvements were partially offset by reduced activity in multiple product service lines in North America and reduced testing activity in Latin America,” said Halliburton.

Halliburton comprises 14 product service lines (PSLs). The PSLs operate in two divisions: Drilling and Evaluation, and Completion and Production. Our Consulting and Project Management PSL works across both divisions and is the spearhead of our integrated-services strategy. Its financial results are included in the Drilling and Evaluation Division. PSLs are primarily responsible and accountable for strategy, technology development, process development, people development and capital allocation.

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