Halliburton projects $400 million annual savings as profit beats on North America strength

By Tanay Dhumal (Reuters) -Halliburton beat Wall Street estimates for third-quarter profit estimates on Tuesday, supported by steady North American oilfield activity and equipment demand, and said its cost-cutting measures are expected to save $400 million annually. The company's shares rose 5.4% in premarket trading, also aided by a partnership with VoltaGrid to provide distributed power solutions for data centers globally, starting in the Middle East. CEO Jeff Miller said Halliburton had "reset" its 2026 capital plan, idled underperforming equipment, and implemented cost-control measures that are expected to save $100 million per quarter. Last month, Reuters reported that Halliburton has been cutting jobs, as it navigates rising costs and a period of lower prices and volatility. Quarterly revenue from its North America segment was $2.4 billion, flat from a year earlier, but above analysts' average estimate of $2.17 billion. Halliburton said the results were supported by increased stimulation activity in U.S. land and Canada, and higher completion tool sales and increased wireline activity in the Gulf of America. While North American activity remains stable, international spending, long viewed as the next growth engine, is showing signs of uneven recovery, particularly in the Middle East. Halliburton reported an 8% drop in third-quarter revenue year-over-year in Middle East/Asia. Last week, peer SLB also beat expectations on stable North America demand, but flagged that it does not expect to see a significant pickup in the region's drilling activity. In July, the company said its international revenue in 2025 is expected to contract by mid-single digits from a year earlier, primarily due to less activity in Saudi Arabia and Mexico. Halliburton reported an adjusted profit of 58 cents per share for the quarter ended September 30, beating analysts' estimate of 50 cents, according to LSEG data. (Reporting by Tanay Dhumal in Bengaluru; Editing by Tasim Zahid and Sriraj Kalluvila)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)