Halliburton turns profit as explorers get back to work

Halliburton Co. eked out a surprise profit in the third quarter as the world’s second-largest oil services company gained business from oil producers that are beginning to ramp up operations following the worst crude-market crash in a generation.

After calling the bottom of the oil cycle three months ago, Halliburton reported its first North American sales boost since the downturn began in late 2014. Sales in its largest market climbed nine per cent to US$1.66 billion compared to the second quarter.

The Houston-based company that helps oil explorers drill and complete wells reported net income of US$6 million, or one cent a share, better than a loss of US$54 million, or six cents, a year earlier, according to a statement Wednesday. Profit was higher than the sixcent average loss of 38 analysts’ estimates compiled by Bloomberg.

“I am pleased with our thirdquarter results given the devastation our industry has faced over the last two years,” chief executive Dave Lesar said in the statement.

Lesar credited the surprise thirdquarter profit in part to “relentlessly managing costs” as the company took advantage of an uptick in drilling in U.S. shale fields, according to Wednesday’s statement. Explorers boosted the U.S. onshore rig count by 100, or 25 per cent, during the third quarter, according to Baker Hughes Inc.