Halliburton Company, in their Q2 2021 results, have pointed to an increase in well intervention activities as partially responsible for their growth in revenue and suggested that a multi-year upcycle may be unfolding.
The company’s Completion and Production revenue in Q2 of 2021 was US$2bn, an increase of US$178mn, or 10%, when compared to Q1, while operating income was US$317mn, an increase of US$65mn, 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 regions such as the Middle East, Africa and North America.
Drilling and Evaluation revenue for Halliburton in Q2 of 2021 was US$1.7bn, an increase of US$78mn, when compared to Q1 of 2021, while operating income was US$175mn, an increase of US$4mn. These results were due to improved drilling-related services and wireline activity across all regions, along with increased testing services in the Eastern Hemisphere.
Jeff Miller, Chairman, President and CEO of Halliburton, said, “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.
“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.”