[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.
Recommended Reading
Excelerate Energy, Qatar Sign 15-year LNG Agreement
2024-01-29 - Excelerate agreed to purchase up to 1 million tonnes per anumm of LNG in Bangladesh from QatarEnergy.
UK’s Union Jack Oil to Expand into the Permian
2024-01-29 - In addition to its three mineral royalty acquisitions in the Permian, Union Jack Oil is also looking to expand into Oklahoma via joint ventures with Reach Oil & Gas Inc.
Eni, Vår Energi Wrap Up Acquisition of Neptune Energy Assets
2024-01-31 - Neptune retains its German operations, Vår takes over the Norwegian portfolio and Eni scoops up the rest of the assets under the $4.9 billion deal.
NOG Closes Utica Shale, Delaware Basin Acquisitions
2024-02-05 - Northern Oil and Gas’ Utica deal marks the entry of the non-op E&P in the shale play while it’s Delaware Basin acquisition extends its footprint in the Permian.
California Resources Corp., Aera Energy to Combine in $2.1B Merger
2024-02-07 - The announced combination between California Resources and Aera Energy comes one year after Exxon and Shell closed the sale of Aera to a German asset manager for $4 billion.