HOUSTON (dpa-AFX) - Oilfield services provider Halliburton Co. (HAL, HAL.TO, HAL.F) Monday said second-quarter profit increased from the prior year, with strong performance in the North America market. In separate statements, the company raised its share buyback and announced the promotion of chief operating officer Jeff Miller to president.
Dave Lesar, chairman, president and CEO, said, 'Our strategy is working well and we intend to stay the course. We see strong, sustainable growth opportunities across the mature field, deepwater and unconventional markets.'
Lesar added that the firm continues to be excited about the North America market. Although there may be near-term choppiness in certain international markets, Halliburton sees a strong pipeline of opportunities.
Net income attributable to the company increased to $774 million from $644 million in the previous year. Earnings per share improved to $0.91 from $0.69.
On average, 32 analysts polled by Thomson Reuters expected the company to report profit per share of $0.91 for the quarter. Analysts' estimates typically exclude special items.
Operating income climbed 21 percent to $1.2 billion amid significant activity improvements in North America and the Eastern Hemisphere.
Total revenue increased to $8.051 billion from $7.317 billion in the prior year. Analysts expected revenues of $7.88 billion.
In Completion and Production or C&P, revenue increased to $4.942 billion from $4.363 billion. The division improved revenues sequentially also, primarily due to higher stimulation activity in the U.S. land market and strong growth in international operations, which more than offset the effects of the seasonal Canadian spring break-up.
Drilling and Evaluation revenues were $3.109 billion, up from $2.954 billion last year. Sequentially, the growth was 6 percent amid higher wireline and fluid services in the Eastern Hemisphere and the U.S.
In North America, revenue increased 11 percent from the first quarter, out-pacing a 4 percent rise in the U.S. land rig count. Service intensity levels continued to expand, as completion volumes per well climbed over 35 percent from last year.
Halliburton expects North America activity levels to continue to improve, with margins approaching 20 percent in the third quarter.
The company plans to immediately accelerate additions to its hydraulic fracturing fleet and logistics capabilities, with new crews available for service beginning later this year.
In another statement, the company said its board of directors declared a third quarter dividend of $0.15 per share on the common stock payable September 24, to shareholders of record at the close of business on September 3.
Halliburton's board of directors also increased its common stock purchase authorization by $4.8 billion to $6 billion.
Separately, the firm said Jeff Miller, currently the company's executive vice president and chief operating officer, has been elevated to the role of president. He has also been appointed to the Halliburton Board of Directors. Both changes are effective August 1.
In this new role, Miller will complement the leadership of Dave Lesar, Halliburton's chairman and chief executive officer.
Miller has served as Halliburton's executive vice president and COO since 2012. He has worked with the company's senior management team in developing and executing operational strategy.
He began his career at Halliburton in 1997 and has held various senior management roles in the company's global operations and business development.
HAL gained 0.8 percent on Friday to close at $70.93.
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