[Editor's note: This story was updated from a previous version posted at 7:50 a.m. Jan. 22.]
Halliburton Co. (NYSE: HAL) reported a bigger-than-expected fourth-quarter profit, as higher oil prices pushed U.S. production to record levels.
Like rival larger Schlumberger Ltd. (NYSE: SLB), Halliburton delivered an upbeat outlook for its domestic and international operations as rising oil prices spur demand for their services.
"I am optimistic about what I see in 2018," CEO Jeff Miller said in a statement.
Halliburton also reported a fourth-quarter charge of $385 million for its operations in Venezuela, which has been mired in political and economic turmoil. Halliburton said it would continue to "vigorously pursue" payments from its customer in Venezuela going forward.
Schlumberger last week disclosed a $938 million write-down on its Venezuelan assets and receivables.
RELATED: Schlumberger To Exit Land, Marine Seismic Acquisition Business
Halliburton was upbeat about the health of the U.S. oil industry given the rise in oil prices and increased drilling. The U.S. rig count is up almost 35% from last year to 936, according to data from Baker Hughes Inc. (NYSE: BHGE), an affiliate of General Electric Co. (NYSE: GE).
"Commodity prices are supportive of increasing activity in North America and I am encouraged by the increase in tender activity and the positive discussions we are having with our international customers," Miller said in a statement.
Shares of the services provider rose around 1% in premarket trading as the company posted a profit of 53 cents a share, beating the average analyst estimate of 46 cents per share, as per Thomson Reuters I/B/E/S.
Halliburton, which makes about 55% of its revenue from North American operations, said total revenue rose to $5.9 billion for the quarter, from $4.02 billion in fourth-quarter 2016. Revenue in North America came in at $3.4 billion, up from $1.8 billion in 2016.
The company also reported $882 million in tax charges, largely the result of preliminary tax provisions related to the new U.S. tax law.
Schlumberger last week beat Wall Street forecasts and gave an upbeat outlook, predicting its international operations would grow in 2018 for the first time in four years.
A stronger outlook for international market follows a nearly 24% climb in the global Brent futures contract in the past three months.
SUPER DUG: Universal Pressure Pumping Threads the Digital Needle [WATCH]
2023-05-26 - Universal Pressure Pumping's Jeff Beach sat down with Hart Energy's Jennifer Pallanich at SUPER DUG to talk about working towards threading the digital needle and the advantages of a dual-fuel system.
From Siloed to Optimized: How Exxon Mobil Juiced Its Technology Approach
2023-05-16 - One year after integrating technology and engineering functions, the supermajor’s EMTEC encourages collaboration and improves problem solving.
Baker Hughes CEO on ‘Unsung Hero’ of the Energy Transition
2023-05-19 - Experts, including Baker Hughes Chairman and CEO Lorenzo Simonelli, called for increased collaboration and more investment in digital tech during the AWS Energy Symposium.
In the Battle for Cybersecurity, End Users are First Line of Defense
2023-05-04 - Cybersecurity behaviors must become as automatic as the use of hard hats and steel toe boots, experts at the Offshore Technology Conference said.
Tech Trends: Waterfall Security CEO Talks Cyber Resilience in Oil and Gas [WATCH]
2023-05-23 - In this week's Tech Trends, find out how Waterfall Security CEO feels about oil and gas companies' usage of cybersecurity tactics, and what needs to be done to better prevent cyber attacks in the industry.