Updated Version 2 - Halliburton's results exceed expectations, Latin American and European operations offset North American market weakness

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Reuters, October 20 - Halliburton (HAL.N) reported third-quarter revenue and profit that both exceeded Wall Street expectations, as growing demand for its oilfield equipment in Latin America offset sluggish business activity in North America and subdued revenue in the Middle East and Asia.

As the first to report among U.S. oilfield service providers this earnings season, the company's shares rose 4.6% in premarket trading on Tuesday.

Halliburton expects mid-single-digit revenue growth by 2027, with an operating margin of about 15%, representing an improvement of roughly 200 basis points over this year's estimate.

This forecast is based on the assumption that the North American market remains steady, without requiring a rebound in U.S. hydraulic fracturing activity.

According to data compiled by London Stock Exchange Group (LSEG), total third-quarter revenue grew 1.8% to $5.7 billion, exceeding analysts’ estimates of $5.6 billion.

Quarterly revenue in Latin America rose nearly 12.6% to $1.1 billion; meanwhile, revenues in Europe and Africa surged 22.7% to $1.02 billion, driven by increased activity in Nigeria.

Revenue in North America fell 9% year-over-year to $2.16 billion, mainly due to reduced fracking activity in U.S. land operations; revenue in the Middle East and Asia was flat, holding steady at $1.41 billion.

The conflict between the U.S. and Iran has put pressure on oilfield service firms operating in this key oil-producing region, resulting in operational disruptions, project decision delays, and casting a shadow over spending outlooks.

“We are experiencing one of the largest energy disruptions in history, with three months elapsed so far. I expect that efforts to restore production, rebuild inventories, and strengthen energy security will drive multi-year demand growth for oilfield services,” Halliburton CEO Jeff Miller said in a statement.

About 25% of the company’s total revenue comes from the Middle East.

Halliburton reported adjusted earnings per share of $0.60 for the three months ended September 30, above analysts’ average estimate of $0.58.

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