Oilfield services provider Halliburton’s third-quarter profit edged past analysts’ estimates on Monday, helped by its international business, even as pipeline bottlenecks in North America led to fewer well completions.
Halliburton, the largest provider of hydraulic fracturing services, has seen demand for its services soften as U.S. producers cut down on spending and transportation bottlenecks in the Permian basin of west Texas and New Mexico pushed the price of regional crude lower.
The company had previously warned that slowing growth in the largest U.S. shale basin would impact its results.
But while demand for its North American completions services has weakened, the firm’s international business is showing signs of recovery, the company said on Monday, as global oil prices have climbed to around $80 a barrel.
Halliburton’s international revenue rose 5 percent from the second quarter to $2.4 billion, while in North America, revenues decreased 2 percent sequentially to $3.74 billion. North American revenues are up 18.2 percent year-over-year.
“Our international business continues to show signs of a steady recovery,” Chief Executive Officer Jeff Miller said in a statement.
Shares of Halliburton were up about 2 percent in pre-market trading at $38.30. In September, they fell to a two and a half year low after the company warned of slowing U.S. activity.
Analysts from Wells Fargo on Monday said Halliburton’s results were “neutral to slightly positive.”
Rival Schlumberger NV also managed a slight profit beat on Friday and cautioned that North American growth would slow due to the bottlenecks and hurt results next quarter.
Net profit attributable to Halliburton rose to $435 million, or 50 cents per share, in the third quarter ended Sept. 30, from $365 million, or 42 cents per share, a year earlier.
Excluding items, the company earned 50 cents per share, beating average analysts’ estimate of 49 cents per share, according to Refinitiv estimates.
Total revenue rose to $6.17 billion from $5.44 billion a year ago. Analysts had anticipated revenues of $6.13 billion for the quarter, according to Refinitiv estimates.