Halliburton profit nearly doubles as oil price surge boosts drilling activity – The Peninsula

Halliburton profit nearly doubles as oil price surge boosts drilling activity – The Peninsula

Oilfield services firm Halliburton Co posted an 85% rise in first-quarter adjusted profit on Tuesday as a rally in crude prices boosted demand for its services and equipment.

Crude futures climbed to their highest level in more than a decade during the quarter after a slew of Western sanctions against Russia disrupted oil sales from the world's second-largest exporter. U.S. West Texas Intermediate is currently around $106.95 a barrel while Brent futures are at $111.76 a barrel.

The price increase has encouraged oil and gas producers to boost drilling activity, sending the U.S. rig count to 673 at the end of the first quarter, up almost 15% from the fourth quarter of 2021, according to Baker Hughes data.

Halliburton said margins in its Drilling and Evaluation division eclipsed 15% in the first quarter for the first time since 2010, despite weather and supply chain disruptions. The company anticipates the supply chain issues that have plagued the industry since demand rebounded from coronavirus-related lockdowns to continue.

"We see significant tightness across the entire oil and gas value chain in North America," Chief Executive Officer Jeff Miller said in a statement.

"Supportive commodity prices and strengthening customer demand against an almost sold-out equipment market are expected to