The world’s three largest oilfield service providers expect the vaccine-driven recovery in global oil demand to continue in the coming quarters, leading to the next uptick in oil drilling and finishing demand.
Halliburton Company (NYSE: HAL), which gets most of its revenue from North America, was the first to report its second quarter financial data last week and provide an estimate of the industry ahead.
Improved North American and International Drilling, Completion and Manufacturing markets helped drive Halliburton on a higher net profit for the second quarter than analysts had estimated. Halliburton also reported rising revenues, both in North America and internationally, and higher quarterly operating revenues as markets continued to improve, the company said.
“The positive business momentum we see today in North America and international markets, combined with our expectations for future customer demand, gives us confidence for an unfolding multi-year upcycle,” said Jeff Miller, chairman, president and CEO of Halliburton.
Baker Hughes, whose Q2 loss was less than recorded losses for Q2 2020 and Q1 2021, reported stronger revenues and orders and demand continues to improve.
“Looking ahead to the second half of 2021, we see continued signs of global economic recovery that should drive further growth in oil and natural gas demand. While recognizing the risks associated with the variant strains of the COVID-19 virus, we expect spending and activity levels to gain momentum over the year as the macro environment improves, likely making the industry prepared for stronger growth in 2022,” Baker Hughes chairman. and CEO Lorenzo Simonelli said.
Schlumberger turned around to a net profit of $431 million for the second quarter, compared to a loss of $3.4 billion in the same period of 2020.
“In North America, sales grew 11% sequentially, representing the highest sequential quarterly growth rate for this area since Q3 2017,” said Schlumberger CEO Olivier Le Peuch, commenting on Q2 2021 performance. .
“With the oil price at a high level, the supply response to this demand recovery is broadly developing as expected. Indeed, this combination has resulted in an appeal to short-cycle production and a rebound in long-cycle projects, reflected in new FIDs and driving recovery in both offshore developments and near-field exploration activities during the second quarter,” Le Peuch said on the profit call on Friday.
By Tsvetana Paraskova for Oilprice.com
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