Halliburton united its competitors in predicting a robust expansion in the oil industry, which helped boost the company’s stock price. The company’s CEO Jeff Miller said that he expected the global economy to remain supportive, which would allow the company to accelerate its cash flow generation and increase its payouts to shareholders. The profitability of the oil patch is starting to rebound as the global economy slowly recovers. Companies such as Schlumberger are boosting their spending plans to take advantage of the recovery. As the biggest contractor in the US and Canada, Halliburton stands to benefit from the recovery in the oil industry’s spending.
The company’s order book grew by 28% in the fourth quarter due to the resurgence of US shale drilling. For the fourth quarter, the company’s profit rose 19% to $262 million, or 36 cents a share, from $210 million, or 29 cents a share, a year earlier. The company’s first increase in its annual dividend in two years was triggered by the recovery in the oil price. In the fourth quarter, sales grew by 12% in North America and 16% overseas. The biggest revenue surprise was from the Middle East and Asia.