TMCnet News
Halliburton Announces Third Quarter 2018 ResultsHalliburton Company (NYSE:HAL) announced today income from continuing operations of $435 million, or $0.50 per diluted share, for the third quarter of 2018. This compares to income from continuing operations for the second quarter of 2018 of $511 million, or $0.58 per diluted share. Operating income was $716 million during the third quarter of 2018, compared to operating income of $789 million in the second quarter of 2018. "I am pleased with our overall financial results for the third quarter. Our team optimized our performance in North America in the face of short-term challenges, and the recovery of our international operations continued," commented Jeff Miller, President and CEO. "Total company revenue of $6.2 billion was essentially flat quarter over quarter, while operating income was $716 million, a 9% decrease compared to the second quarter of 2018, largely due to the softening North America market for completion services. "In North America, a combination of offtake capacity constraints and our customers' budget exhaustion led to less demand than expected for completion services. I believe that these are temporary issues, and that the catalysts for improving demand for services are clearly visible: supportive commodity pricing, expanding offtake capacity, building well inventory, and reloaded customer budgets. "Our international business continues to show signs of a steady recovery, with revenue increasing 5% sequentially, and every international region growing this quarter. "In both of our divisions, we continue to invest in technologies and capabilities that we believe will drive growth, create meaningful differentiation, and deliver industry-leading returns. As a result, we are able to provide cutting edge technology that sets new standards for service quality and performance, and makes better wells for our customers. "The outlook for global commodity supply and demand dynamics is constructive. I am confident that Halliburton has the right strategy, technology, and services to deliver industry-leading returns. We remain the leader in North America, which we believe is poised for a better 2019, and Halliburton is better positioned than it has ever been for the international recovery," concluded Miller. Operating Segments Completion and Production Completion and Production revenue in the third quarter of 2018 was $4.2 billion, essentially flat when compared to the second quarter of 2018, while operating income was $613 million, a decrease of $56 million, or 8%. Lower pricing and higher maintenance expense in stimulation services in the United States land sector negatively impacted results. That was partially offset by increased completion tool sales and well intervention services in the Eastern Hemisphere and higher stimulation activity in Mexico. Drilling and Evaluation Drilling and Evaluation revenue in the third quarter of 2018 was $2.0 billion, essentially flat when compared to the second quarter of 2018, while operating income was $181 million, a decrease of $10 million, or 5%. Declines in drilling fluids activity in North America were partially offset by increased drilling-related services in Latin America. Corporate and Other Events During the third quarter of 2018, Halliburton repurchased $200 million of common stock. Halliburton also repaid $400 million of debt that matured in the third quarter. Geographic Regions North America North America revenue in the third quarter of 2018 was $3.7 billion, a 2% decrease sequentially. This decrease was primarily driven by lower pricing for stimulation services in the United States land sector and reduced drilling fluids activity in North America, partially offset by increased activity in the production chemicals and artificial lift product service lines in the United States land sector. International International revenue in the third quarter of 2018 was $2.4 billion, a 5% increase sequentially, resulting primarily from increased completion tool sales and well intervention services in the Eastern Hemisphere and higher drilling-related services in Latin America, partially offset by pricing pressure for stimulation services in the Middle East. Latin America revenue in the third quarter of 2018 was $522 million, a 9% increase sequentially, resulting primarily from increased activity for stimulation services in Mexico and drilling-related services throughout the region, particularly in Argentina, Brazil and Ecuador. These increases were partially offset by decreased software sales in Mexico. Europe/Africa/CIS revenue in the third quarter of 2018 was $757 million, a 4% increase sequentially, primarily driven by higher pipeline services across the region, coupled with increased completion tool sales in the North Sea. Middle East/Asia revenue in the third quarter of 2018 was $1.2 billion, a 4% increase sequentially, largely resulting from increased completion tool sales and well intervention services throughout the region, partially offset by pricing pressure for stimulation services in the Middle East. Selective Technology & Highlights
About Halliburton Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With over 55,000 employees, representing 140 nationalities in more than 80 countries, the Company helps its customers maximize value throughout the lifecycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. Visit the Company's website at www.halliburton.com. Connect with Halliburton on Facebook, Twitter, LinkedIn, Instagram and YouTube. NOTE: The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the continuation or suspension of our stock repurchase program, the amount, the timing and the trading prices of Halliburton common stock, and the availability and alternative uses of cash; changes in the demand for or price of oil and/or natural gas; potential catastrophic events related to our operations, and related indemnification and insurance matters; protection of intellectual property rights and against cyber-attacks; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to oil and natural gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services, and climate-related initiatives; the impact of federal tax reform, compliance with laws related to income taxes and assumptions regarding the generation of future taxable income; risks of international operations, including risks relating to unsettled political conditions, war, the effects of terrorism, foreign exchange rates and controls, international trade and regulatory controls and sanctions, and doing business with national oil companies; weather-related issues, including the effects of hurricanes and tropical storms; changes in capital spending by customers; delays or failures by customers to make payments owed to us; execution of long-term, fixed-price contracts; structural changes and infrastructure issues in the oil and natural gas industry; maintaining a highly skilled workforce; availability and cost of raw materials; agreement with respect to and completion of potential acquisitions and integration and success of acquired businesses and operations of joint ventures. Halliburton's Form 10-K for the year ended December 31, 2017, Form 10-Q for the quarter ended June 30, 2018, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss some of the important risk factors identified that may affect Halliburton's business, results of operations, and financial condition. Halliburton undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Conference Call Details Halliburton will host a conference call on Monday, October 22, 2018, to discuss the third quarter 2018 financial results. The call will begin at 8:00 AM Central Time (9:00 AM Eastern Time). Please visit the website to listen to the call live via webcast. Interested parties may also participate in the call by dialing (888) 393-0263 within North America or +1 (973) 453-2259 outside of North America. A passcode is not required. Attendees should log in to the webcast or dial in approximately 15 minutes prior to the call start time. A replay of the conference call will be available on Halliburton's website for seven days following the call. Also, a replay may be accessed by telephone at (855) 859-2056 within North America or +1 (404) 537-3406 outside of North America, using the passcode 6352269.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181022005160/en/ |