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发明分析

Halliburton, Schlumberger, Baker Hughes. 2023Q2 Production activity results

Aenert news. Energy Companies
The financial performance of oil service companies largely reflects the state of the oil market, especially if these companies are world leaders in this segment of services and provide them on all continents and in almost all oil-producing countries (today except Russia). For example, Halliburton operates in more than 70 countries.

After the tough first quarters of 2020, when all of these companies suffered significant losses, each of them is now enjoying strong revenue growth and healthy profits.
Of course, specific individual indicators are different for each company, but the general trend towards income growth is typical for all.


Halliburton

The company completed the second quarter of 2023 with record Revenue of $5.8 billion ($5.7 billion in the first quarter of 2023), an increase of 14% compared to the same quarter last year. Halliburton's revenue growth continues for the fifth quarter in a row. Net income for 2023Q2 amounted to $610 million, which is noticeably less than in the previous quarter ($651 million), but much higher than a year earlier.

Halliburton Company. Revenue, net income and share price

Halliburton. Revenue, net income and share price

Operating margin was 17.4%, up 329 basis points from last year. Completion and Production revenue in the second quarter of 2023 was $3.5 billion, Drilling and Evaluation revenue was $2.3 billion. Drilling activity in the Western Hemisphere and Saudi Arabia was increased, but software sales were decreased in North America and the Eastern Hemisphere. The company's share price has stabilized at a relatively high level.


Schlumberger

Schlumberger, like Halliburton, achieved a record revenue of $8.1 billion in 2023Q2, which is 20% more than a year earlier. At the same time, Net income attributable to Schlumberger exceeded $1.0 billion (an increase of 44% compared to 2022Q2). Adjusted EBITDA margin amounted to 24.2% versus 22.6% a year earlier. Board approved quarterly cash dividend of $0.25 per share.

Schlumberger Limited Company. Revenue, net income and share price

Schlumberger. Revenue, net income and share price

The company's largest revenue growth came from the Middle East and Asia. Also, approximately half of the income is generated in the offshore operations sector.

Aenert. Heavy oil production in California

Aenert photos. Heavy oil production in California

Reservoir Performance revenue of $1.64 billion grew 9%. Well Construction revenue of $3.36 billion increased 3% and Production Systems revenue of $2.31 billion increased 5%, sequentially. According to Schlumberger management, a large number of multi-year contracts were awarded in the second quarter. As in the case of Halliburton, the company's share price has stabilized at a relatively high level.


Baker Hughes

Baker Hughes also followed its major competitors in delivering excellent financial performance in the second quarter of 2023. Revenue of $6.3 billion for the quarter, up 25% year-over-year. Net income attributable to Baker Hughes Company of $410 million for the quarter, up $1,248 million year-over-year (the loss was recorded in the second quarter a year earlier). Adjusted EBITDA of $907 million for the quarter, up 39%.

Baker Hughes Company. Revenue, net income and share price

Baker Hughes. Revenue, net income and share price

In the Oilfield Services & Equipment segment, revenue amounted to $3.877 billion, and in Industrial & Energy Technology $2.438 billion, respectively. In addition, in the quarter under review, Baker Hughes received orders for $7.5 billion, which is 28% more than a year earlier. Over the past three years, the company's share price has more than doubled.

The presented results, at least partially, indicate the stable state of the global oil industry. In the third quarter of 2023, oil companies received an additional incentive for development in the form of a serious increase in world prices for crude oil. If this process is supported by an increase in demand, the services of oil service companies will be in the spotlight, which will lead to new records for their financial performance.

By the Editorial Board