Oil service giants optimistic about recovery by drilling

Two of the world‘s largest oil service providers, Baker Hughes and Halliburton, reported earnings exceeding expectations on Wednesday and expressed optimism about growth in oil demand and oil drilling activity during the remainder of the year. year and until 2022.

Baker Hughes (NYSE: BKR) Reserve adjusted earnings per share of $ 0.12 for Q1 2021, up $ 0.11 for Q1 2020 and a loss of $ 0.07 for Q4 2020, and beating analysts’ estimate of $ 0.11 per share .

Baker Hughes’ free cash flow nearly doubled to $ 498 million in the first quarter from $ 250 million in the previous quarter, as international and North American operations increased earlier this year as prices increased. oil.

“As we look into the rest of 2021, we remain cautiously optimistic that the global economy and demand for oil will recover from the impact of the global pandemic. We expect spending and activity levels to accelerate throughout the year as the macroeconomic environment improves, which will likely allow the industry to experience stronger growth in 2022 ”, said Lorenzo Simonelli, Chairman and CEO of Baker Hughes.

Halliburton Company (NYSE: HAL) also beat analysts’ estimates, report net income of $ 170 million, or $ 0.19 per diluted share, for the first quarter of 2021, ahead of consensus of $ 0.17 per share estimate.

Halliburton North America revenue increased 13% sequentially to $ 1.4 billion for the first quarter, driven by increased drilling related services, stimulation and activity onshore man-made lifting, as well as wireline business and higher software sales for onshore and Gulf of Mexico drilling customers. .

“The first quarter marked a turnaround in activity in international markets, while North America continued to post a healthy recovery. I expect growth in international business to accelerate, and the early positive momentum in North America gives me confidence in the pace of activity for the remainder of the year, ”said Jeff Miller, President- General Manager of Halliburton.

By Tsvetana Paraskova for OilUSD

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