Halliburton beats profit estimates on oilfield services demand in Latin America, Europe

The British frigate HMS Lancaster sails as Iranian Revolutionary Guard vessels follow behind it in the Strait of Hormuz Friday, May 19, 2023. The Mideast-based chiefs of the U.S., British and French navies transited the Strait of Hormuz on Friday aboard an American warship, a sign of their unified approach to keep the crucial waterway open after Iran seized two oil tankers. (AP Photo/Jon Gambrell)

April 21 (Reuters) - Halliburton HAL.N beat Wall Street estimates for first-quarter profit on Tuesday, as steady demand in Latin America and Europe helped offset a slowdown in activity in the Middle East due to the Iran war.

Revenue in the U.S. oilfield services provider’s international segment rose slightly to $3.3 billion, driven by a 22% jump in Latin America and an 11% rise in Europe and Africa.

Total revenue fell slightly to $5.4 billion during the quarter, as revenue from the Middle East declined 12.7% to $1.32 billion.

Halliburton and peers are yet to benefit from a surge in oil prices due to the disruptions caused by attacks on infrastructure in the Middle East and Iran’s effective closure of the Strait of Hormuz, as producers have taken a more cautious stance instead of increasing drilling.

The company said revenue from North America fell 4.5% to $2.14 billion during the quarter ended March 31, due to lower stimulation activity and decreased artificial lift activity.

Halliburton posted an adjusted profit of 55 cents per share for the three months ended March 31, compared with analysts’ expectations of 50 cents, according to estimates compiled by LSEG.

The Middle East conflict had an impact of roughly 2 cents to 3 cents on first-quarter earnings per share, Halliburton said.

Larger rival SLB SLB.N has flagged a 6-9 cent-per-share earnings hit, after the industry bellwether suspended travel and demobilized operations in the Middle East.

Halliburton’s shares were up marginally at $36.88 in premarket trade.

Reporting by Vallari Srivastava in Bengaluru; Editing by Sriraj Kalluvila