Halliburton Co. (HAL, Financial) released the earnings numbers for its fourth quarter and full year of 2021 today, showing net income of $824 million, or 92 cents per diluted share. This compares favorably to net income for the third quarter of 2021, which was only $236 million, or 26 cents per diluted share.
Adjusted net income for the fourth quarter of 2021, excluding tax adjustments, was $320 million, or 36 cents per diluted share. This was an improvement from adjusted net income of $248 million, or 28 cents per diluted share, for the third quarter of 2021, excluding special items.
Halliburton's total revenue for the fourth quarter of 2021 was $4.3 billion compared to revenue of $3.9 billion in the third quarter of 2021. Reported operating income was $550 million in the fourth quarter of 2021 in comparison to reported operating income of $446 million in the third quarter of 2021.
For the full year, total revenue was $15.3 billion, an increase of $850 million, or 6%, versus full-year 2020. Reported operating income for 2021 was $1.8 billion, up from an operating loss of $2.4 billion and adjusted operating income of $1.4 billion for 2020, excluding impairments and other charges, the company reported.
The company's management team has also decided to up the quarterly dividend payment from 4.5 cents per share to 12 cents per share. Analysts were quick to note that the dividend had been 18 cents per share pre-Covid, though still, any increase is better than no increase.
Despite the positive results, however, Halliburton’s stock was down about 0.8% in premarket trading. This was likely at least in part due to analysts' expectations for 34 cents in per-share earnings. Projections had pegged sales at $4.1 billion, so it seems the results were mixed, with a bottom-line miss but a top-line win.
Falling oil prices could be another factor behind the stock’s decline Monday morning, Barron’s suggested. “Benchmark U.S. and international oil prices were down 0.3% and 0.1%, respectively. Both oil-price benchmarks have fallen for three consecutive days including Monday’s early trading action.”
“I am pleased with our solid execution in the fourth quarter and for the full year. Both operating divisions experienced revenue growth in the international and North America markets. Our Completion and Production division delivered solid mid-teens margins, and our Drilling and Evaluation division margins surprised to the upside,” Halliburton Chairman and CEO Jeff Miller said. “Today’s announcements of the dividend increase and debt retirement demonstrate my confidence in our business, customers, employees, and value proposition. I am excited about the accelerating multi-year upcycle. I expect the macro industry environment to remain supportive and the international and North America markets to continue their simultaneous growth.”
Miller said his company uniquely benefits from what he terms this “constructive” environment. “Our value proposition works, we have the right strategies for both international and North America markets, we are leaders in digital and automation, and we drive capital efficiency while advancing a sustainable energy future. I fully expect that Halliburton will accelerate cash flow generation, strengthen our balance sheet, and increase cash returns to shareholders in this upcycle.”
