OSLO, Norway — The oilfield service (OFS) majors SLB, Baker Hughes and Halliburton look set to maintain strong financial performances over the coming months, according to Rystad Energy.
All reported improved margins and cash flow during the first quarter compared with the corresponding period in 2022.
Upstream revenues for SLB and Halliburton approached levels unmatched in the first quarter of the four previous years, while Baker Hughes’ revenues were its highest in the first quarter in eight years.
Pricing for OFS has improved in North and South America, with 45% growth in the well construction segment. Halliburton’s completion and production division also prospered as demand rose for pressure pumping services and completion tools.
SLB posted a 34% year-on-year (YoY) increase in revenues in Latin America after supplying offshore production systems to big developments in Brazil and Guyana, with the company’s production systems segment racking up 50% greater revenues in the region.
Demand for subsea and surface pressure systems stoked Baker Hughes’ growth in its OFSE segment in the first quarter, with a 60% increase in orders for these products helped by Azule Energy’s subsea equipment contract for its Agogo field development off Angola. That was among Baker Hughes’ largest subsea tree awards in almost five years, Rystad noted.
Halliburton achieved 50% YoY revenue growth in OFSE segment in Latin America, helped by rising well construction services and stimulation activity in Mexico.
In the Middle East and Asia, Baker Hughes’ OFSE segment revenues were up 23%, while all Halliburton product lines prospered Saudi Arabia, supported by improved well construction services and increased project management activity across the region.
SLB managed double-digit growth in the region due to growing drilling, intervention and evaluation activity in Saudi Arabia, the UAE, Qatar and Oman.
The company’s new energy division also strengthened its participation in carbon capture and storage with SLB now involved in more than 30 projects worldwide.
Baker Hughes entered two alliances earlier this year including an MoU with Fortescue Future to pursue opportunities for scale up and adopt novel technology solutions for green hydrogen, green ammonia and geothermal projects.
And Halliburton recently introduced three new clean energy companies to its Halliburton Labs offshoot.