Oilfield services giants Halliburton, SLB and Baker Hughes have posted bumper profits in their respective full-year results, with international demand playing a key role.
The trio make up the Big Three of their field, with workforces in the tens of thousands, reporting their financials in the last week.
All three beat analyst estimates for their fourth quarters, despite a slowing US market.
Halliburton
“2023 was a great year for Halliburton,” declared CEO Jeff Miller after net income climbed 66% annually to $2.6bn for the year to December 31, on total revenues of $23bn.
The US based services giant followed rival SLB in hiking its quarterly dividend, in this case up 6% to 17 cents.
Meanwhile Halliburton (NYSE: HAL) generated Q4 cash flow of $1.1bn, its highest in two decades.
A slowdown in US shale work is expected to see Halliburton focus on overseas expansion ahead.
“I am excited about 2024,” said Miller. “The outlook for oilfield services demand remains strong. I expect we will deepen and strengthen our value proposition, and generate significant free cash flow.”
Baker Hughes
Net income attributable to Baker Hughes (NASDAQ: BKR) stood at £1.94bn for the 2023 financial year, reversing a $601m loss in the prior 12-month period.
Revenues stood at $25.5bn, up 21% year-on-year.
Highlights for its Q4 results were driven by international demand for equipment and services from LNG producers.
Oilfield services and equipment saw its quarterly North American revenue slip 1%, while the international segment climbed 15%.
CEO Lorenzo Simonelli also pointed to the removal of $150m of costs, which improved quarterly EBITDA which stood at $1bn.
“As you can see from our strong 2023 results, Baker Hughes is on its way to becoming a leaner and more efficient energy technology company.
“We continue to carefully execute our plan to drive margins meaningfully higher.”
SLB
SLB (NYSE: SLB) also pointed to international growth, as CEO Olivier Le Peuch said the firm has “concluded a remarkable year marked by widespread revenue growth, margin expansion, and exceptional free cash flow”.
The oilfield services firm posted net income for 2023 of $4.2bn, up 22% year on year, against revenues of $33bn, up 18%.
SLB raised its quarterly dividend by 10% and intends to increase share buybacks through 2024.
International revenues climbed 12% over the year, while change in North America was nominal, climbing from $201m in 2022 to $220m.
Mr Le Peuch predicted major investment in key international markets.
“Notably, we anticipate record investment levels in the Middle East extending beyond 2025, with significant expansion in Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait.
“Offshore remains another distinct attribute of this durable growth cycle, serving as an important source for production growth and capacity additions, and we expect strong activity to continue in Brazil, West Africa, the Eastern Mediterranean, the Middle East, and Southeast Asia.”
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