HAL: Halliburton Company (NYSE:HAL)

Halliburton Company (NYSE: HAL) declared recently net income of $295.00M, or $0.340 per diluted share, for the 3rd-quarter of 2K19.

  • Stated net income of $0.340 per diluted share
  • Cash flows from operating activities of $871.00M and free cash flow of $526.00M

This compares to stated net income for the second quarter of 2K19 of $75.00M, or $0.090 per diluted share, and adjusted net income for the second quarter of 2K19 of $303.00M, or $0.350 per diluted share, apart from impairments and other charges. Operating income was $536.00M during the 3rd-quarter of 2K19, contrast to stated operating income of $303.00M and adjusted operating income of $550.00M for the second quarter of 2K19.

“Total company revenue was $5.60B and operating income was $536.00M, representing declines of 6.00 percent and 3.0 percent, respectively, a contrast to revenue and adjusted operating income in the second quarter of 2K19.

“International revenue, which was flat sequentially, was up 10.00 percent year to date and we remain confident that we will achieve high single-digit international growth for all of 2K19. International growth continues across multiple regions, benefitting both our Drilling and Evaluation and Completion and Production divisions.

“Our North America revenue reduced 11.00 percent sequentially driven by customer activity declines and the execution of our new playbook. I am proud of how our team performed in this challenging market. We are successfully implementing our new strategy and are focused on taking the right actions to deliver returns and cash flow for our shareholders.

“As the international recovery continues and the North American market matures, our strategy is allowing us to thrive in this dynamic environment, generate strong free cash flow and produce industry-leading returns,” concluded Miller.

Operating Segments

Completion and Production

Completion and Production revenue in the 3rd-quarter of 2K19 was $3.50B, a decline of $299.00M, or 8.00 percent when contrast to the second quarter of 2K19 while operating income was $446M, a decline of $24.00M, or 5.00 percent. These results were mainly driven by lower pressure pumping activity and pricing in North America land, coupled with reduced completion tool sales in Latin America and reduced stimulation activity in the Middle East/Asia. These declines were partially offset by raised cementing activity in the Eastern Hemisphere, improved completion tool sales in Europe/Africa/CIS, and higher stimulation activity in Latin America.

Drilling and Evaluation

Drilling and Evaluation revenue in the 3rd-quarter of 2K19 was $2.00B, a decline of $81.00M, or 4.00 percent, when contrast to the second quarter of 2K19 while operating income was $150M, a boost of $5.00M, or 3.00 percent. These results were driven by reduced drilling and wireline activity in North America and lower project administration activity in Middle East/Asia. These declines were partially offset by higher drilling activity in the Eastern Hemisphere, fluids activity in Latin America and higher testing and software sales globally resulting in better overall margins.

Geographic Regions

North America

North America revenue in the 3rd-quarter of 2K19 was $2.90B, an 11.00 percent decline when contrast to the second quarter of 2K19, mainly associated with lower activity and pricing in pressure pumping and well construction services in North America land.

International

International revenue in the 3rd-quarter of 2K19 was $2.60B, essentially flat when contrast to the second quarter of 2K19, with raised cementing activity in the Eastern Hemisphere and activity increases in Argentina offset by lower project administration and stimulation activity in the Middle East/Asia.

Latin America revenue in the 3rd-quarter of 2K19 was $608.00M, a 6.00 percent increase sequentially, resulting mainly from higher activity in multiple product service lines in Argentina, raised testing activity and artificial lift sales across the region and improved fluids activity in Mexico. These improvements were partially offset by lower completion tool sales in Brazil.

Europe/Africa/CIS revenue in the 3rd-quarter of 2K19 was $831.00M, essentially flat when contrast to the second quarter of 2K19. Higher activity across multiple product service lines in Russia, Caspian and the North Sea offset lower activity in West Africa.

Middle East/Asia revenue in the 3rd-quarter of 2K19 was $1.20B, a 4.00 percent decline sequentially, mostly resulting from reduced project administration and stimulation activity across the region. These declines were partially offset by raised activity in multiple product service lines in Indonesia.