Halliburton's profit doubled amid rising oil demand

Halliburton Co. is beating experts' profit estimates despite the tight oil market. 

The corporation's adjusted earnings per share reached 60 cents for the third quarter of 2022. This figure exceeded analysts' average estimates from a year earlier. Thus, the company's share price rose another 4.4%.

Halliburton CEO Jeff Miller said the structural demand for oil is driving a rapid business surge. More growth is expected for the market in the long run, with a range of countries and producers being touched. 

While the labor market remains tight, shale workers and leasing companies are in a prime position. Miller warned that corporations without sophisticated hydrofracking equipment wouldn't be able to purchase it until 2023. 

Halliburton's sales rose by a third to $5.4 billion. The surge came from revenues in North America. This indicator is the strongest over the last three years. 

According to Miller, the company's revenue growth in North America continues, presenting the highest level in 2022. 

The rapid rise is boosting shareholder returns through higher dividends or share buybacks. This is reported by the corporation's chief financial officer, Eric Carre. 

Unlike a few years earlier, Halliburton is now spending 80% of its production capacity on equipment repairs. Only 20% goes to making new rigs. So that service companies may oversee oil equipment supplies, keeping costs high for customers. 

Halliburton's data show the corporation's international business has grown by 21% since the previous year. Drilling activity is projected to increase in Saudi Arabia, the United Arab Emirates, Qatar and Kuwait.