Halliburton Company announced today net income of $227 million, or $0.26 per diluted share, for the second quarter of 2021.
Q2 2021 Earnings Release - view the complete report with tables (pdf)
FOR IMMEDIATE RELEASE - HOUSTON - July 20, 2021 - Halliburton Company (NYSE: HAL) announced today net income of $227 million, or $0.26 per diluted share, for the second quarter of 2021. This compares to net income for the first quarter of 2021 of $170 million, or $0.19 per diluted share. Halliburton's total revenue for the second quarter of 2021 was $3.7 billion, compared to revenue of $3.5 billion in the first quarter of 2021. Operating income was $434 million in the second quarter of 2021 compared to operating income of $370 million in the first quarter of 2021.
“Our second quarter performance demonstrates that our strategy is working well and Halliburton’s strategic priorities are driving value in this transition year. Total company revenue increased 7% sequentially, as both North America and international markets continued to improve, and operating income grew 17% with solid margin performance in both divisions,” commented Jeff Miller, Chairman, President and CEO.
“Halliburton’s Completion and Production division margin reached three-year highs, while our Drilling and Evaluation division margin outperformed expectations, setting both divisions up for robust margin growth this year.
“Our solid free cash flow generation further demonstrates the effectiveness of our strategy to strengthen the cash flow profile of our business.
“The positive activity momentum we see in North America and international markets today, combined with our expectations for future customer demand, gives us conviction for an unfolding multi-year upcycle.
“Halliburton’s value proposition, unique exposure to both international and North America markets, and differentiated technologies across an integrated services portfolio solidify our sustainable competitive advantage, and deliver strong free cash flow and industry-leading returns,” concluded Miller.
Completion and Production revenue in the second quarter of 2021 was $2 billion, an increase of $178 million, or 10%, when compared to the first quarter of 2021, while operating income was $317 million, an increase of $65 million, or 26%. These results were driven by increased activity across multiple product service lines in North America land, higher cementing activity in the Eastern Hemisphere and Latin America, increased completion tools sales in the Middle East, the North Sea, and Latin America, as well as higher well intervention services in Saudi Arabia and Algeria. Partially offsetting these improvements was lower stimulation activity in Latin America.
Drilling and Evaluation revenue in the second quarter of 2021 was $1.7 billion, an increase of $78 million, or 5%, when compared to the first quarter of 2021, while operating income was $175 million, an increase of $4 million, or 2%. These results were due to improved drilling-related services and wireline activity across all regions, along with increased testing services in the Eastern Hemisphere. Partially offsetting these increases were reduced software sales globally.
North America revenue in the second quarter of 2021 was $1.6 billion, a 12% increase when compared to the first quarter of 2021. This increase was primarily driven by higher pressure pumping services, drilling-related services, and wireline activity in North America land, as well as higher well construction activity in the Gulf of Mexico. Partially offsetting these increases were reduced software sales across the region.
International revenue in the second quarter of 2021 was $2.1 billion, a 4% increase when compared to the first quarter of 2021. This improvement was primarily driven by higher well construction activity, completion tools sales, and well intervention services across all regions. Partially offsetting these increases were lower software sales across all regions and decreased stimulation activity in Latin America.
Latin America revenue in the second quarter of 2021 was $534 million, flat sequentially. Increased activity in multiple product service lines in Mexico, higher fluid services in Brazil, as well as additional completion tools sales in Guyana, were offset by reduced stimulation activity in Argentina, Mexico, and Brazil, lower software sales across the region, and decreased project management activity in Mexico and Ecuador.
Europe/Africa/CIS revenue in the second quarter of 2021 was $679 million, a 7% increase sequentially, resulting from increased activity across multiple product service lines in Russia, Norway, Algeria, and Ghana. These increases were partially offset by lower software sales across the region and lower activity in Nigeria.
Middle East/Asia revenue in the second quarter of 2021 was $925 million, a 5% increase sequentially, resulting from improved activity in multiple product service lines in Saudi Arabia, higher well intervention services across the region, increased drilling-related services in Oman, higher completion tools sales in Kuwait, higher well construction activity in Australia, and increased pipeline services in China. These improvements were partially offset by lower software sales across the region, lower project management activity in India, and lower activity in Bangladesh.
Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With more than 40,000 employees, representing 130 nationalities in more than 70 countries, the company helps its customers maximize value throughout the lifecycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. Visit the company’s website at www.halliburton.com. Connect with Halliburton on Facebook, Twitter, LinkedIn, Instagram and YouTube.
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the impact of COVID-19 and any variants, the related economic repercussions and resulting negative impact on demand for oil and gas, operational challenges relating to COVID-19 and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the ability of the OPEC+ countries to agree on and comply with supply limitations; the continuation or suspension of our stock repurchase program, the amount, the timing, and the trading prices of Halliburton common stock, and the availability and alternative uses of cash; changes in the demand for or price of oil and/or natural gas; potential catastrophic events related to our operations, and related indemnification and insurance matters; protection of intellectual property rights and against cyber-attacks; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to oil and natural gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services, and climate-related initiatives; compliance with laws related to income taxes and assumptions regarding the generation of future taxable income; risks of international operations, including risks relating to unsettled political conditions, war, the effects of terrorism, foreign exchange rates and controls, international trade and regulatory controls and sanctions, and doing business with national oil companies; weather-related issues, including the effects of hurricanes and tropical storms; changes in capital spending by customers, delays or failures by customers to make payments owed to us, and the resulting impact on our liquidity; execution of long-term, fixed-price contracts; structural changes and infrastructure issues in the oil and natural gas industry; maintaining a highly skilled workforce; availability and cost of raw materials; agreement with respect to and completion of potential dispositions, acquisitions and integration and success of acquired businesses and operations of joint ventures. Halliburton's Form 10-K for the year ended December 31, 2020, Form 10-Q for the quarter ended March 31, 2021, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors identified that may affect Halliburton's business, results of operations, and financial condition. Halliburton undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Halliburton Company (NYSE: HAL) will host a conference call on Tuesday, July 20, 2021, to discuss its second quarter 2021 financial results. The call will begin at 8:00 AM Central Time (9:00 AM Eastern Time).
Please visit the website to listen to the call via live webcast. You may also participate in the call by dialing (844) 358-9181 within North America or +1 (478) 219-0188 outside of North America. A passcode is not required. Attendees should log in to the webcast or dial in approximately 15 minutes prior to the start of the call.
A replay of the conference call will be available on Halliburton’s website until July 27, 2021. Also, a replay may be accessed by telephone at (855) 859-2056 within North America or +1 (404) 537-3406 outside of North America, using the passcode 9429544.
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