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Oil and gas servicing giant Halliburton reported better than expected second quarter earnings Monday before the market but with lower revenue. $HAL followed earnings from Schlumberger. $HAL said momentum building internationally and activity improvement should continue

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

$0.35 Beat $0.30 EPS Forecast But $5.93 Bil Missed $5.97 Billion Forecast in Revenue

Earnings

Halliburton reported second quarter adjusted net income of $303 million, or $0.35 per share, which beat the analyst consensus estimate of $0.30 per share on revenue of $5.93 billion, less thah the analyst consensus estimate of $5.97 billion. Net income attributable to company was $75 million, or $0.09 per share, compared to $511 million, or $0.58 per share, in the year-ago period. The results were impacted by higher impairment charges and interest expense.

Earnings Preview

Haliburton Co. (NYSE: HAL) report its second quarter results early on Monday. Analysts forecast both revenue and earnings to decline on a year-over-year basis. Analysts have projected earnings of $0.30 per share on revenue of $5.97 billion. The company’s challenges from last quarter are likely to continue, namely weakness in its main region and strategic changes in the capital allocation plans of major oil companies as trade wars and macro economic headwins prevail. Halliburton’s shares have dropped 52% in the trailing 52 weeks and over 19% year to date. ;

Last quarter 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.

Read: Schlumberger Suffer First Revenue Decline in 10 Quarters

Read: Total North America rig count -3 to 1072 down 185 year on year

Halliburton Company NYSE: HAL

Market Reaction > Pre-market $22.86 USD +$1.12 (+5.15%)

Highlights

CEO Jeff Miller said, “Momentum is building internationally and activity improvement should continue into 2020. Halliburton has the footprint and the expanded technology portfolio to capitalize on this international growth.”

Halliburton Q2 2019 Earnings

 

  • Revenues in the Completion and Production segment dropped 7% to $3.8 billion in the second quarter compared to the year-ago period.
  • Revenues in Drilling and Evaluation increased 10% year-over-year to $2.1 billion.
  • On a sequential basis, both segments saw single-digit revenue increases helped by factors such as higher artificial lift activity in North America, increased pipeline services in Europe/Africa/CIS and increased wireline activity globally. In North America, revenues fell 13% year-over-year to $3.3 billion. In Latin America, revenues increased 19% to $571 million.
  • Revenues in the Europe/Africa/CIS region rose 13% to $823 million
  • Revenues in the Middle East/Asia region rose 9% to $1.2 billion.
  • Revenues increased 2% sequentially in North America, driven mainly by higher stimulation, artificial lift and wireline activity in North America land, and higher drilling activity in the Gulf of Mexico.
  • International revenue grew 6% sequentially due mainly to higher completion tool sales and increased cementing, project management and fluids activity in the Eastern Hemisphere.
  • During the quarter, Halliburton repurchased approx. 4.5 million shares of common stock for $100 million.

 

Halliburton Company Q1 Earnings Recap

$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.

 

Source: HAL, Alphastreet

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