Halliburton expects second-quarter earnings to grow by 25%
HOUSTON (Bloomberg) -- Halliburton Co. expects to boost earnings per share in the second quarter by 25% as the world’s largest hydraulic fracturing service provider overcomes bad weather and lower pricing in North America.
Further increases are set to follow, the Houston-based company said in a statement after reporting first-quarter earnings that beat analysts’ estimates.
Pricing for fracing work in the U.S. and Canada is expected to remain flat this year and increase in some regions early next year, according to a Feb. 14 report by PacWest Consulting Partners in Houston. About 16.7 million horsepower for fracing is competing to meet demand for 12.7 million this year, the consultant said.
Halliburton’s services include cementing wells drilled a mile underground and completing them with hydraulic fracturing.
The average number of rigs active in the U.S. and Canada rose 0.7% to 2,304 in the quarter from 2,289 a year earlier, according to Baker Hughes.
Producers are likely to increase capital spending in the U.S. and Canada by 7% this year after two previous years of less than 5% growth in capital budgets, according to Barclays Capital.