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: July 27, 2012 11:15AM

Halliburton Company (HAL) filed Quarterly Report for the period ended 2012-06-30. Halliburton Company has a market cap of $28.41 billion; its shares were traded at around $33.09 with a P/E ratio of 8.5 and P/S ratio of 1.1. The dividend yield of Halliburton Company stocks is 1.2%. Halliburton Company had an annual average earning growth of 21.5% over the past 10 years. GuruFocus rated Halliburton Company the business predictability rank of 2-star.



Highlight of Business Operations:

During the first half of 2012, we produced revenue of $14.1 billion and operating income of $2.2 billion, reflecting an operating margin of approximately 16%. Revenue increased $2.9 billion, or 26%, from the first half of 2011, while operating income increased $249 million, or 13%. These results were attributable to higher drilling activity in the oil and liquids-rich basins in North America, as well as increased activity in all our international regions, compared to the first half of 2011. The first half of 2012 results, however, were moderated by escalating costs associated with guar gum, a blending additive used in our hydraulic fracturing processes, decreasing activity in natural gas basins, and pricing pressure in certain basins in North America due to an over-supply of hydraulic fracturing equipment. The first half of 2012 results included a $300 million, pre-tax, loss contingency for the Macondo well incident. The first half of 2011 results were negatively impacted by an $11 million, pre-tax, charge for employee separation costs in the Eastern Hemisphere and a $59 million, pre-tax, charge in Libya, primarily related to reserves for certain assets.

Completion and Production consolidated revenue increased 23% and North America revenue increased 22% compared to the second quarter of 2011, led by production enhancement services as higher activity in unconventional basins generally resulted in increased demand for pressure-pumping services. Latin America revenue grew 27%, with higher demand for production enhancement services in Mexico and cementing services in Brazil. Europe/Africa/CIS revenue increased 33%, driven by strong demand for completion tools and pressure-pumping services in Angola, additional work in Mozambique, and higher cementing activity in Norway. Middle East/Asia revenue grew 16%, driven by higher activity levels in Oman, Australia, and Southeast Asia, which were partially offset by lower product sales in China. Revenue outside of North America was 29% of total segment revenue in the second quarter of 2012 and 28% of total segment revenue in the second quarter of 2011.

Drilling and Evaluation revenue increased 20% compared to the second quarter of 2011, with all regions experiencing revenue growth. North America revenue increased 14%, primarily due to higher drilling fluids demand in the United States. Latin America revenue was up 29%, driven by higher activity in Brazil, Mexico, and Colombia. Europe/Africa/CIS revenue increased 9% due to higher activity levels in Tanzania, direct sales in Poland, and increased demand for drilling services in Angola. Middle East/Asia revenue grew 35%, primarily due to increased activity levels in Malaysia, Iraq, and China and direct sales in Saudi Arabia, which were partially offset by lower drilling activity in Indonesia. Revenue outside of North America was 65% of total segment revenue in the second quarter of 2012 and 63% of total segment revenue in the second quarter of 2011.

Completion and Production revenue increased by 29% driven by North America revenue growth of 32% compared to the first six months of 2011. The activity increase in North America was led by production enhancement services in United States land resulting from higher activity in unconventional basins. Latin America revenue grew 27% due to increased activity across Mexico and Venezuela as well as additional cementing work in Brazil. Europe/Africa/CIS revenue increased 23% due to higher activity in the region, especially completion tools in Angola, cementing in Norway and Mozambique, and all services in Nigeria. Middle East/Asia revenue grew 14%, with higher demand for cementing in Oman and Australia, higher completion tools activities in Indonesia and Brunei, and increased Boots & Coots services in India and Saudi Arabia. Revenue outside North America was 27% of total segment revenue in the first six months of 2012 and 29% of total segment revenue in the first six months of 2011.

Drilling and Evaluation revenue increased 21% compared to the first six months of 2011 as fluids and wireline activity improved across all regions, most significantly in North America. North America revenue increased 21% on substantial fluids and wireline activity increases in the United States and increased drilling services in Canada. Latin America revenue grew 28% as a result of increased demand for all services in Brazil and Colombia and most services in Mexico, Ecuador, and Venezuela. Europe/Africa/CIS revenue increased 9% due to higher fluids and drilling activity in Angola and Tanzania and direct sales in Poland, which were partially offset by reduced activity in the North Sea. Middle East/Asia revenue grew 28% due to direct sales in Saudi Arabia, higher fluids and drilling activity in Malaysia, and increased activity in Iraq, partially offset by reduced drilling services in Indonesia. Revenue outside North America was 63% of total segment revenue in the first six months of 2012 and 2011.

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