Halliburton Co's fourth-quarter adjusted profit doubled from a year earlier, it said on Monday, beating analysts' forecasts and prompting the oilfield services company to lift its dividend following a rebound in crude and natural gas prices.
U.S. oil prices rose more than 50% last year and have made a strong start to 2022, hovering around $85 a barrel, thanks to the global economic recovery from the coronavirus pandemic and supply cuts by producer group OPEC.
That has encouraged producers to ramp up drilling activity, with the U.S. rig count rising 68% year-over-year to 586 at the end of the fourth quarter, according to Baker Hughes data.
"I expect the macro industry environment to remain supportive and the international and North America markets to continue their simultaneous growth," Halliburton Chief Executive Jeff Miller said in a statement. The company's completions and production unit saw solid-teen margins for the quarter, he said.
Halliburton said it would boost its dividend to 12 cents, payable on March 23, up from a 4.5 cents dividend previously.
Shares in the Houston, Texas-based company were up about 1.7% in early trading to $28 each. West Texas Intermediate (WTI) crude futures were down slightly at $84.94 a barrel.
Halliburton's fourth-quarter adjusted net income totaled $320 million, or 36 cents per share, topping Wall Street estimates of 34 cents a share, according to Refinitiv IBES. Adjusted net income was $160 million, or 18 cents per share, a year ago.
Revenue of $4.3 billion also beat analysts expectations of $4.1 billion.
Rivals Schlumberger and Baker Hughes topped market expectations for fourth-quarter earnings last week.
(Reporting by Arunima Kumar in Bengaluru; Editing by Aditya Soni and Susan Fenton)