Halliburton Co. managed to gain a boost in revenue from its North American branch that shrunk its sequential quarterly loss during the first quarter.
According to Halliburton’s earnings release, there was a net loss of $32 million in the first quarter, much smaller than the net loss of $153 million from the fourth quarter, and a huge improvement compared to the $2.42 billion loss from the first quarter in 2016.
“We are in the midst of a unique and challenging cycle,” said Halliburton’s president, Jeff Miller, in the release. “I am excited by the activity I see in North America.”
That was influenced by the company’s North American division seeing significant growth as the rig count increased. Halliburton’s North American businesses generated $2.2 billion in revenue in the first quarter, marking an increase of 24 percent sequentially, according to the release. The company had a total revenue of $4.28 billion, an increase from $4.02 billion in the fourth quarter.
“There’s no doubt that the pace of completions activity is catching up with the rig count,” Halliburton CEO Dave Lesar said on a conference call related to the release. “We expect to see that relationship continue into the next quarter.”
Halliburton has also acknowledged an improvement in its pricing in the U.S., according to the release.
“We’re seeing pricing improvement in every basin where we work in North America,” Lesar said. “We expect that that momentum continues as we work through the year.”
Halliburton predicted an increase in revenue during the quarter when it said that it would accelerate the rate at which it brings its oil field equipment back online, which it said in March.
During the conference call in March, Halliburton said that it expected to hire a minimum of 2,000 people to accompany that acceleration. The company ended up hiring about 2,500 people during the quarter, according to Halliburton spokeswoman Emily Mir.
Last year Halliburton said it was looking to hire 200 people for positions in the Permian Basin.
Halliburton recently lost its CFO as Mark McCollum stepped down from the position in March and took the top spot as CEO at Weatherford International PLC(NYSE: WFT). The company also reported a net loss of $5.76 billion for 2016.
Article written by HEI contributor Lydia Ezeakor.