Fracking activity stabilizing even with decreased demand for oilfield services

Halliburton Company (NYSE: HAL), North America’s largest provider of fracking services, sees activity stabilizing across the shale patch as it announced another net loss this year due to decreased demand for oilfield services.

“In international markets, the rate of activity declines is slowing, while the structure of the North American industry continues to strengthen and activity stabilizes,” said Jeff Miller, chief executive of Halliburton, in a statement.

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After exploration and production firms scaled back drilling plans, decreased production, and eliminated frac crews and rigs after oil prices and oil demand collapsed in March, Halliburton, as well as all other oilfield service providers, felt the pain from decreased drilling activities throughout North America and internationally. Revenue in North America, Halliburton ‘s largest source of revenue, plummeted from US$ 2.949 billion in Q3 2019 to US$ 984 million. North America’s revenue fell by 6 percent compared to Q2 2020.

However, Halliburton booked an adjusted net income for Q3 of US$ 100 million, or US$ 0.11 per diluted share, except severance and other costs. The adjusted net income per share exceeded the Wall Street Journal’s average estimate of US$ 0.08 per share of analysts’ sales.

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“Last week, Schlumberger (NYSE: SLB), the world’s largest oilfield services provider, announced its third consecutive quarterly loss this year, and although CEO Olivier Le Peuch warned of a” fragile “near-term recovery, he said,” In North America, the conditions are set for continued momentum, with improved DUC well-completion operation on US soil and a moderate resumption of drilling in the US and C.

Source: https://oilprice.com