[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
Energy Transfer Asks FERC to Weigh in on Williams Gas Project
2024-04-08 - Energy Transfer's filing continues the dispute over Williams’ development of the Louisiana Energy Gateway.
Imperial Oil Shuts Down Fuel Pipeline in Central Canada
2024-03-18 - Supplies on the Winnipeg regional line will be rerouted for three months.
Balticconnector Gas Pipeline Will be in Commercial Use Again April 22, Gasgrid Says
2024-04-17 - The Balticconnector subsea gas link between Estonia and Finland was damaged in October along with three telecoms cables.
Williams Beats 2023 Expectations, Touts Natgas Infrastructure Additions
2024-02-14 - Williams to continue developing natural gas infrastructure in 2024 with growth capex expected to top $1.45 billion.
Venture Global Acquires Nine LNG-powered Vessels
2024-03-18 - Venture Global plans to deliver the vessels, which are currently under construction in South Korea, starting later this year.