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Oil and gas servicing giant Halliburton reported better than expected earnings Monday before the market. $HAL followed dissappointing earnings from Schlumberger and ahead of Baker Hughes a GE Co. $HAL said the worst is over for "pricing deterioration."

Halliburton Oilfield

The Baker Hughes oil rig count has hit a cycle high benefiting oil service companies but has been steadily falling over the last quarter with the decreased activity in North America. Halliburton serves the upstream oil and gas industry throughout the lifecycle extraction to completion of the energy source.

Halliburton Company NYSE: HAL Reported Before Open Monday

$0.17 EPS as Forecast AND $5.44 Bil Beat $5.54 Billion Forecast in Revenue 

Earnings 

Haliburton Co. (NYSE: HAL) reported its first quarter results early on Monday with the earnings decline in line with estimates but beat revenue views saying the worst is over for "pricing deterioration."

Halliburton Reported net income of $152 million, or $0.17 per share, from $46 million, or $0.05 per share in the year-ago quarter. Adjusted net income totaled $201 million, or $0.23 per share with revenue flat at $5.74 billion. Analysts had expected Halliburton earnings per share of 23 cents with with revenue down 3.5% to $5.54 billion.

Halliburton Company NYSE: HAL

Market Reaction > Pre-market $31.29 USD +0.17 (+0.55%)

Highlights

“As expected, the first quarter activity levels in North America were modestly higher compared to the first quarter of 2018, and we experienced pricing headwinds throughout the quarter. We believe the worst in the pricing deterioration is now behind us. For the next couple of quarters, I see demand for our services progressing modestly.” Halliburton CEO Jeff Miller said.

  • Completion and Production revenue fell 4% year-over-year to $3.7 billion, mainly due to lower pricing for stimulation services in US land.
  • Drilling and Evaluation revenue rose 7% year-over-year to $2.1 billion, with activity improvements across all geographic regions. The increase was helped by higher logging and project management activity globally and improved fluids activity in Latin America.
  • In North America, revenue dropped 7% to $3.3 billion, hurt mainly by lower pricing for stimulation services in US land.
  • International revenue increased 11% year-over-year, driven by increased stimulation and fluids activity in Latin America, higher completion tool sales in the Middle East/Asia and improved logging activity in Europe/Africa/CIS.
  • Within International, the highest revenue growth of 28% came from Latin America, fueled by higher activity for the majority of Halliburton’s product service lines in Mexico, higher stimulation activity in Argentina and improved fluids activity across the region.
  • Higher activity across multiple product service lines in Ghana and the UK, higher completion tool sales, increased project management activity in India and improved drilling activity in the Middle East all helped drive revenue increases in the Europe/Africa/CIS and Middle East/Asia regions.

HAL Earnings Q1 19

Halliburton said it will build the first oilfield chemical manufacturing plant in Saudi Arabia. The plant is expected to be completed in 2020.

 

Halliburton Q4 Earnings Recap

$0.41 Beat $0.37 EPS Forecast AND $5.94 Bil Beat $5.89 Billion Forecast in Revenue 

Earnings 

Haliburton Co. (NYSE: HAL) reported its fourth-quarter results early on Tuesday at 41 cents a share, with revenue flat at $5.94 billion.  Analysts had expected Halliburton earnings to fall 32% to 37 cents per share on revenue of $5.89 billion.

Net income attributable to the company was $664 million or $0.76 per share. This compares to a net loss of $824 million or $0.94 per share in the prior-year period. Adjusted income from continuing operations was $358 million or $0.41 per share.

Halliburton Company NYSE: HAL

Market Reaction> Pre-market $31.69 −0.56 (-1.74%)

Highlights

  • North America revenue was $3.3 billion, down 11% sequentially.
  • Halliburton blamed lower activity and pricing in stimulation services, though the Gulf of Mexico was more active.
  • International revenue rose 7% sequentially to $2.6 billion, led by the Middle East/Asia and Latin America regions.
  • On a sequential basis, revenues in Completion and Production fell 8% mainly due to lower activity and pricing for stimulation services in North America.
  • Drilling and Evaluation revenue grew 5% sequentially mainly due to year-end software sales, increased fluids activity in the Gulf of Mexico and improved project management activity in Latin America.
  • Crude oil prices plunged around 40% in the fourth quarter, tempering U.S. activity and spurring OPEC and Russia to enact production cuts.
  • During the quarter, Halliburton acquired SmartFibres, a producer of fiber optic pressure gauges, and also signed two contracts with Eni Iraq BV to drill development wells over the next two years

 HAL Q4 2018 earnings

"“As North American oil production reaches historic highs, operators focus on returns over growth, and the international recovery continues, Halliburton is well prepared to thrive. We intend to dynamically respond to the changing market environment, reduce capital spending, develop differentiating technologies, and generate strong cash flow.”.

 

Source: HAL, Alphastreet

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