Upstream services firm Halliburton reported a 33% increase in year-on-year revenues for the fourth quarter, supporting an increase in dividends paid out to its shareholders. File photo by Aaron M. Sprecher/UPI | License Photo
Jan. 24 (UPI) -- U.S. upstream services company Halliburton on Tuesday reported that year-on-year growth in revenue of 33% was enough to support an increase in payouts to its shareholders.
Halliburton is the latest company specializing in providing services to companies working on the exploration and production of oil and natural gas, characterized as the upstream part of the energy sector.
Counterparts Schlumberger and Baker Hughes each turned in healthy profits for the fourth quarter, though the performance for Baker Hughes was weaker than expected.
Halliburton on Tuesday reported $5.6 billion in total revenue for the fourth quarter, a $200 million improvement over the third quarter. Total revenue of $20.3 billion for the year marked a 33% increase from 2021.
Jeff Miller, the top official at Halliburton, said he expects trends to continue through 2023 with success spilling over to shareholders in terms of dividends.
"I am confident in Halliburton's strong outlook and ability to generate increased returns for shareholders," he said.
A dividend increase of 33%, to $0.16 per share, is planned for the first quarter of 2023.
A shortage of new investments in upstream could be cause for concern. Last summer, when U.S. consumers were paying upward of $5 per gallon for gas, President Joe Biden complained that energy companies were making "more money than God," but were favoring their own shareholders over spending on the pursuit of new reserves.
Research from consultant group Wood Mackenzie, meanwhile, cited supply-chain issues as an inhibiting factor. Service companies like Schlumberger and Baker Hughes have cut their fleets, limiting the availability of essential systems such as floating production rigs. Cost for offshore rigs, meanwhile, have doubled compared with year-ago levels, with parts of Brazil among the hardest hit.
"With activity levels growing, equipment and services availability will be a constraint," analysts wrote.