New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Halliburton Company Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: April 24, 2012 01:33PM

Halliburton Company (HAL) filed Quarterly Report for the period ended 2012-03-31. Halliburton Co has a market cap of $30.63 billion; its shares were traded at around $33.67 with a P/E ratio of 9.2 and P/S ratio of 1.2. The dividend yield of Halliburton Co stocks is 1.1%. Halliburton Co had an annual average earning growth of 2.5% over the past 5 years.



Highlight of Business Operations:

During the first quarter of 2012, we produced revenue of $6.9 billion and operating income of $1.0 billion, reflecting an operating margin of approximately 15%. Revenue increased $1.6 billion, or 30%, from the first quarter of 2011, while operating income increased $209 million, or 26%. These results were due mainly to higher drilling activity and pricing improvements in North America, as well as increased activity in all our international regions, compared to the first quarter of 2011. The first quarter of 2012 results included a $300 million, pre-tax, loss contingency for the Macondo well incident. The first quarter of 2011 results were negatively impacted by a $59 million, pre-tax, charge in Libya, primarily related to reserves for certain assets.

Completion and Production consolidated revenue increased 35% and North America revenue increased 43% compared to the first quarter of 2011, led by production enhancement and cementing services as higher activity in unconventional basins generally resulted in increased demand for pressure-pumping services. Latin America revenue increased 28%, with Mexico, Brazil, and Venezuela leading higher demand throughout the region, particularly for production enhancement and cementing services. Europe/Africa/CIS revenue increased 14%, led by strong demand for completion tools and cementing services in Nigeria, which was partially offset by lower activity levels in Libya. Middle East/Asia revenue increased 12%, driven by favorable pricing in Oman and higher activity levels in Australia and Indonesia, which were partially offset by lower product sales in China. Revenue outside of North America was 26% of total segment revenue in the first quarter of 2012 and 30% of total segment revenue in the first quarter of 2011.

Completion and Production segment operating income increased 57% compared to the first quarter of 2011, primarily driven by production enhancement and cementing services in the United States land market. The first quarter of 2011 results were negatively impacted by a $36 million, pre-tax, charge in Libya to reserve for doubtful accounts receivable and inventory in the Europe/Africa/CIS region. In North America, operating income grew 42% due to higher activity, improved equipment utilization, and a more favorable pricing environment for production enhancement and cementing services in the United States land market. Latin America operating income increased 53% as a result of higher activity levels in Mexico and increased demand for cementing services and completion tools sales in Brazil. Europe/Africa/CIS operating income increased due to resumption of activities in North Africa, increased demand in Nigeria, and overall improved profitability in Sub-Saharan Africa. The increase in operating income was also attributed to lower operating income in the first quarter of 2011 as a result of the $36 million, pre-tax, charge in Libya to reserve for doubtful accounts receivable and inventory. Middle East /Asia operating income rose 47% due to improved margins in Oman and increased activity levels in Indonesia and Iraq, which more than offset lower completion tools sales in Malaysia and less demand for production enhancement services in Asia.

Drilling and Evaluation revenue increased 22% compared to the first quarter of 2011, with all regions experiencing revenue growth. North America revenue grew 30%, primarily due to higher drilling activity and increased wireline and perforating demand. Latin America revenue rose 27%, driven by higher drilling activity in Brazil, Colombia, and Mexico. Europe/Africa/CIS revenue grew 9% due to higher drilling activity in Angola and East Africa, which were partially offset by weather-related disruptions in the North Sea and lower activity levels in Libya. Middle East/Asia revenue increased 20%, primarily due to increased activity levels in Malaysia, Saudi Arabia, and Iraq, which were partially offset by lower drilling activity in Indonesia. Revenue outside of North America was 62% of total segment revenue in the first quarter of 2012 and 64% of total segment revenue in the first quarter of 2011.

Drilling and Evaluation operating income increased 60% compared to the first quarter of 2011, as profitability improved in all regions. The first quarter of 2011 results were negatively impacted by a $23 million, pre-tax, charge in Libya to reserve for doubtful accounts receivable and inventory in the Europe/Africa/CIS region. North America operating income grew 61%, due to increased demand for fluids and higher drilling and wireline activity throughout the region. Latin America operating income increased 68%, driven by strong demand for testing and subsea services in Brazil and higher drilling activity in Colombia, which more than offset higher costs in Mexico. Europe/Africa/CIS operating income improved because the first quarter of 2011 results were negatively impacted by a $23 million, pre-tax, charge in Libya to reserve for doubtful accounts receivable and inventory. Middle East/Asia operating income rose 42%, primarily due to increased demand for fluids in Saudi Arabia and higher wireline services activity in the Middle East.

Read the The complete Report



Stocks Discussed: HAL,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial