Form 8-K Hal Ann 2nd qrt results

 


SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (date of earliest event reported)

June 29, 2004

Halliburton Company
(Exact name of registrant as specified in its charter)


State or other
Jurisdiction
of incorporation
 
Commission
File Number
 
IRS Employer
Identification
Number
 
 
 
 
 
Delaware
 
1-3492
 
No. 75-2677995

1401 McKinney, Suite 2400
Houston, Texas 77010
(Address of principal executive offices)

Registrant's telephone number,
including area code – 713-759-2600





 
     

 

INFORMATION TO BE INCLUDED IN REPORT


Item 5. Other Events.

Second Quarter Results

We had a loss from continuing operations of $54 million in the second quarter 2004. This compares to income from continuing operations of $42 million in the second quarter 2003, and income from continuing operations of $76 million in the first quarter 2004. Impacting continuing operations for the second quarter 2004 was a $310 million pretax charge relating to the Barracuda-Caratinga project.

We had a net loss of $663 million in the second quarter 2004. This compares to net income of $26 million in the second quarter 2003, and a net loss of $65 million in the first quarter 2004. The net loss in the second quarter 2004 included a net loss from discontinued operations for the proposed asbestos and silica settlement of $609 million, which resulted primarily from second quarter 2004 reduction of the amount recorded as asbestos insurance receivables due to pending settlement agreements with domestic insurance carriers.

We had revenues of $5.0 billion in the second quarter of 2004. This compares to revenues of $3.6 billion in the second quarter 2003, and revenues of $5.5 billion in the first quarter 2004. The increase of revenues in the second quarter 2004 versus the second quarter 2003 was largely attributable to KBR's additional activity on government services projects in the Middle East.

We had a consolidated pretax operating loss of $19 million in the second quarter 2004. This compares to total operating income of $71 million in the second quarter 2003, and total operating income of $175 million in the first quarter of 2004. The decrease in the second quarter 2004 was primarily attributable to a decline in KBR operating results due to the pretax loss on the Barracuda-Caratinga project, offset by increased government services work. KBR's second quarter 2003 operating income included a $173 million pretax charge on the Barracuda-Caratinga project.


Item 12. Disclosure of Results of Operations and Financial Condition.

On July 23, 2004 registrant issued a press release entitled “Halliburton Announces Second Quarter Results.”

The text of the Press Release is as follows:

HALLIBURTON ANNOUNCES SECOND QUARTER RESULTS

$0.12 per diluted share loss from continuing operations,
including $0.46 charge on Barracuda-Caratinga project

HOUSTON, Texas – Halliburton (NYSE:HAL) announced today that second quarter 2004 loss from continuing operations was $54 million, or $0.12 per diluted share. Impacting continuing operations for the quarter on an after-tax basis was the previously announced $200 million charge, or $0.46 per diluted share, on the Barracuda-Caratinga project.

Net loss for the quarter was $663 million, or $1.51 per diluted share, and included a net loss from discontinued operations for the proposed asbestos and silica settlement of $609 million, or $1.39 per diluted share. The net loss from discontinued operations resulted primarily from the second quarter reduction of the amount recorded as asbestos insurance receivables due to the pending settlement agreements with domestic insurance carriers.

Revenues were $5.0 billion in the second quarter 2004, up 38% from the second quarter 2003. This increase was largely attributable to additional activity on government services projects in the Middle East in the Engineering and Construction Group (known as KBR).

The consolidated pretax operating loss was $19 million in the second quarter 2004 compared to $71 million operating income in the second quarter 2003. This decrease was primarily attributed to a decline in KBR operating results as a result of a $310 million pretax loss on the Barracuda-Caratinga project, offset by increased government services work. KBR second quarter 2003 operating income included a $173 million pretax loss on the Barracuda-Caratinga project.

The Energy Services Group (ESG) had improved operating income in each of the four segments. Revenues increased 7% in the second quarter 2004 compared to the prior year period, and operating income for ESG was up 15% in the second quarter 2004. ESG second quarter 2003 operating income included a $24 million pretax gain related to the sale of Halliburton Measurement Systems (HMS).

“I am very pleased with our ESG operating performance during the quarter,” said Dave Lesar, chairman, president and chief executive officer of Halliburton. “We continue to see growth and improvement in the energy services business. The rig count continues to increase, while our uplift in pricing, coupled with our focus on cost control, are providing stronger margins. Sequentially for the quarter, ESG revenue increased $88 million or 5%, operating income was up $57 million or 27% and operating margins increased by 2.4 percentage points over the first quarter 2004.

“Also, last week’s confirmation of the Plan of Reorganization by the United States Bankruptcy Court was, we believe, a significant step forward on our path for resolving our asbestos liability. With this confirmation, we are encouraged that we will soon receive a favorable judgment as the plan moves to the district court. The large additional operating loss on Barracuda-Caratinga in the quarter was disappointing, but we have enhanced our project management and increased our effort to complete this difficult project.”




2004 Second Quarter Segment Results

Energy Services Group

ESG posted second quarter 2004 revenues of $1.9 billion, a $124 million increase over the second quarter 2003, and operating income of $271 million, up $36 million from the same period in the prior year.

Production Optimization operating income for the second quarter 2004 was $121 million, a $9 million increase over second quarter 2003. The second quarter 2003 included a $24 million gain on the sale of HMS. The increase was primarily driven by production enhancement services, which improved operating income $27 million, largely derived from increased land rig activity, higher equipment utilization and improved pricing in the United States. Operating income from completions and reservoir optimization (formerly completion products and tools & testing) services increased $20 million on improved international demand. The second quarter 2004 included $2 million in equity losses from the Subsea 7 joint venture compared with $11 million in equity income in the second quarter 2003.

Fluids operating income for the second quarter 2004 was $77 million, a $9 million increase over the second quarter 2003. The increase in operating income was primarily attributable to a $6 million increase in cementing services due to higher land drilling activity in the United States and improved pricing. The second quarter 2003 included $4 million of equity losses from Enventure, the expandable casing joint venture.


Drilling and Formation Evaluation operating income of $59 million was up $10 million over the prior year quarter primarily due to continued improvement in logging services. Logging services operating income increased $9 million year-over-year on higher United States land rig counts and improvement in pricing. Drilling services saw an operating income increase of $3 million primarily due to a change in accounting estimate totaling $13 million to extend the useful life of directional drilling and logging-while-drilling tools for depreciation purposes, offset by weakness in the United Kingdom sector of the North Sea and Africa.

Landmark and Other Energy Services second quarter 2004 operating income was $14 million, compared to $6 million for the prior year period. This increase in operating income was attributed to strong commodity prices benefiting integrated solutions services in the second quarter 2004. Landmark Graphics achieved 3% growth in revenues over the prior year period, setting a new record for revenues in the second quarter of any year, due primarily to increased software and hardware sales principally in Asia.

KBR

KBR revenues for the second quarter 2004 were $3.1 billion, a 68% increase over the second quarter 2003. The improvement was due to government contract activities, primarily in the Middle East.

KBR operating loss for the second quarter 2004 was $277 million, compared to a $148 million loss in the second quarter 2003. Second quarter 2004 operating loss included a $310 million loss on the Barracuda-Caratinga project, which was partially offset by improved results on government services projects. Second quarter 2003 results included a $173 million loss on the Barracuda-Caratinga project.

KBR backlog at June 30, 2004 was $8.8 billion, up nearly $400 million from March 31, 2004, primarily due to work on the LogCAP III contract. Approximately 23% of the backlog was for fixed-fee contracts, compared to approximately 26% at March 31, 2004.

Halliburton’s Iraq-related work contributed approximately $1.7 billion in revenues in the second quarter 2004 and $23 million in operating income before corporate costs and taxes.


Technology and Significant Achievements

Halliburton had a number of advances in technology and new contract awards.

Energy Services Group new technologies and contracts:

·Halliburton has been awarded a contract by ConocoPhillips estimated to be worth $130 million over three years to provide integrated drilling services for its North Sea activities. The contract, awarded to Sperry-Sun, includes two additional options up to three years each. The contract is one of the first awarded by ConocoPhillips covering all its North Sea operations. The contract includes the provision of directional drilling, measurement-while-drilling, logging-while-drilling, mud logging and surveying services.

·Halliburton has been awarded two contracts totaling $230 million to drill 33 turnkey wells in southern Mexico by Petroleos Mexicanos S.A. (Pemex), the state-owned oil company of Mexico.

·Halliburton has been awarded a three-year contract by Norsk Hydro to provide drilling services and complementary products for the operator's Oseberg South and on the Oseberg J-structure in the North Sea. The contract, valued at approximately $120 million, will include services from Halliburton's Sperry-Sun and Security DBS product service lines, such as directional drilling, measurement-while-drilling, logging-while-drilling, mud logging and the supply of drill bits.

·Halliburton has been awarded a five-year contract by BP for integrated drilling services in offshore Azerbaijan to be performed by Sperry-Sun. The award provides a strategic base of operations for additional Halliburton activity in the southern Caspian Sea.

·Halliburton has been awarded a five-year global technology and services agreement with Statoil. In this agreement Landmark Graphics will provide solutions for prospect generation, field development planning as well as drilling and completions.


KBR new contract awards:

·KBR has been awarded a contract valued at $175 million over five years by the United States Navy to support the Hampton Roads naval facilities. The award is the first contract with the United States Navy in Hampton Roads since KBR’s contract with the Yorktown Weapons Station expired in 1999. KBR’s work will involve indefinite quantities of facility rehabilitation, alteration, and repair work.

·BP announced on July 1, 2004 its intention to award contracts to KBR production services for engineering, maintenance, and modification services for its United Kingdom assets. The awards are for an initial period of three years but, with options, the contracts could extend to a total of nine years.

·Esso announced its intention to award a five-year contract to KBR production services for integrated services for design, procurement, and construction on its Bass Strait assets in southeast Australia. KBR had been contracted for part of this work scope over the past five years but was successful in securing the entire scope under an open tender process.


Halliburton, founded in 1919, is one of the world’s largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services and Engineering and Construction Groups. The company’s World Wide Web site can be accessed at www.halliburton.com.


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: legal risks, including the risks of being unable to complete the proposed settlement of asbestos and silica liabilities, the risks of having material subsidiaries in Chapter 11 proceedings, the risks of audits and investigations of the company by domestic and foreign government agencies and legislative bodies and potential adverse proceedings and findings by such agencies, t he risks of judgments against the company's subsidiaries and predecessors in asbestos litigation pending and currently on appeal, the inability of insurers for asbestos exposures to pay claims or a delay in the payment of such claims, future asbestos claims defense and settlement costs, the risks of judgments against the company and its subsidiaries in other litigation and proceedings, including shareholder lawsuits, securities laws inquiries, contract disputes, patent infringements and environmental matters, legislation, changes in government regulations and adverse reaction to scrutiny involving the company; political risks, including the risks of unsettled political conditions, war and the effects of terrorism, foreign operations and foreign exchange rates and controls; liquidity risks, including the risks of potential reductions in debt ratings, access to credit, availability and costs of financing and ability to raise capital; weather-related risks; customer risks, including the risks of changes in capi tal spending and claims negotiations; industry risks, including the risks of changes that affect the demand for or price of oil and/or gas, structural changes in the industries in which the company operates, risks of fixed-fee projects and risks of complex business arrangements; systems risks, including the risks of successful development and installation of financial systems; and personnel and merger/reorganization/disposition risks, including the risks of increased competition for employees, successful integration of acquired businesses, effective restructuring efforts and successful completion of planned dispositions. Please see Halliburton's Form 10-K/A for the year ended December 31, 2003, Form 10-Q for the quarter ended March 31, 2004 and Form 8-K filed July 19, 2004 for a more complete discussion of such risk factors.








 
     

 

HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)

 
 
Three Months
Three Months
 
 
Ended
Ended
 
 
June 30
March 31
   

 
 
2004
2003
2004

 
 
 
 
Revenues
   
 
   
 
   
 
 
Production Optimization
 
$
797
 
$
692
 
$
708
 
Fluids
   
554
   
518
   
535
 
Drilling and Formation Evaluation
   
423
   
414
   
444
 
Landmark and Other Energy Services
   
130
   
156
   
129
 

 
 
 
 
Total Energy Services Group
   
1,904
   
1,780
   
1,816
 
Engineering and Construction Group
   
3,052
   
1,819
   
3,703
 

 
 
 
 
Total revenues
 
$
4,956
 
$
3,599
 
$
5,519
 

 
 
 
 
Operating income (loss)
   
 
   
 
   
 
 
Production Optimization
 
$
121
 
$
112
 
$
82
 
Fluids
   
77
   
68
   
60
 
Drilling and Formation Evaluation
   
59
   
49
   
43
 
Landmark and Other Energy Services
   
14
   
6
   
29
 

 
 
 
 
Total Energy Services Group
   
271
   
235
   
214
 
Engineering and Construction Group
   
(277
)
 
(148
)
 
(15
)
General corporate
   
(13
)
 
(16
)
 
(24
)

 
 
 
 
Total operating income (loss)
   
(19
)
 
71
   
175
 

 
 
 
 
Interest expense
   
(53
)
 
(25
)
 
(56
)
Interest income
   
7
   
7
   
10
 
Foreign currency, net
   
(7
)
 
19
   
(3
)
Other, net
   
(1
)
 
2
   
5
 

 
 
 
 
Income (loss) from continuing operations before income taxes,
   
 
   
 
   
 
 
minority interest, and change in accounting principle
   
(73
)
 
74
   
131
 
(Provision) benefit for income taxes
   
26
   
(29
)
 
(49
)
Minority interest in net income of subsidiaries
   
(7
)
 
(3
)
 
(6
)

 
 
 
 
Income (loss) from continuing operations before change in
   
 
   
 
   
 
 
accounting principle
   
(54
)
 
42
   
76
 
Loss from discontinued operations, net
   
(609
)
 
(16
)
 
(141
)

 
 
 
 
       
Net income (loss)
 
$
(663
)
$
26
 
$
(65
)

 
 
 
 
Basic income (loss) per share:
   
 
   
 
   
 
 
Income (loss) from continuing operations before change in
   
 
   
 
   
 
 
accounting principle
 
$
(0.12
)
$
0.09
 
$
0.17
 
Loss from discontinued operations, net
   
(1.39
)
 
(0.03
)
 
(0.32
)
 
 
 
 
 
Net income (loss)
 
$
(1.51
)
$
0.06
 
$
(0.15
)

 
 
 
 
Diluted income (loss) per share:
   
 
   
 
   
 
 
Income (loss) from continuing operations before change in
   
 
   
 
   
 
 
accounting principle
 
$
(0.12
)
$
0.09
 
$
0.17
 
Loss from discontinued operations, net
   
(1.39
)
 
(0.03
)
 
(0.32
)
 
 
 
 
 
Net income (loss)
 
$
(1.51
)
$
0.06
 
$
(0.15
)

 
 
 
 
Basic weighted average common shares outstanding
   
437
   
434
   
436
 
Diluted weighted average common shares outstanding
   
437
   
436
   
440
 

See Footnote Table 1 for a list of significant items included in operating income.

 
     

 
 
HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)

 
 
Six Months Ended
 
 
June 30
   
 
 
2004
2003

 
 
 
Revenues
   
 
   
 
 
Production Optimization
 
$
1,505
 
$
1,319
 
Fluids
   
  1,089
   
998
 
Drilling and Formation Evaluation
   
867
   
793
 
Landmark and Other Energy Services
   
259
   
281
 

 
 
 
Total Energy Services Group
   
3,720
   
3,391
 
Engineering and Construction Group
   
6,755
   
3,268
 

 
 
 
Total revenues
 
$
10,475
 
$
6,659
 

 
 
 
Operating income (loss)
   
 
   
 
 
Production Optimization
 
$
203
 
$
180
 
Fluids
   
137
   
123
 
Drilling and Formation Evaluation
   
102
   
115
 
Landmark and Other Energy Services
   
43
   
(3
)

 
 
 
Total Energy Services Group
   
485
   
415
 
Engineering and Construction Group
   
(292
)
 
(167
)
General corporate
   
(37
)
 
(35
)

 
 
 
Total operating income
   
156
   
213
 

 
 
 
Interest expense
   
(109
)
 
(52
)
Interest income
   
17
   
15
 
Foreign currency, net
   
(10
)
 
13
 
Other, net
   
4
   
2
 

 
 
 
Income from continuing operations before income taxes,
   
 
   
 
 
minority interest and change in accounting principle
   
58
   
191
 
Provision for income taxes
   
(23
)
 
(79
)
Minority interest in net income of subsidiaries
   
(13
)
 
(11
)

 
 
 
Income from continuing operations before change in
   
 
   
 
 
accounting principle
   
22
   
101
 
Loss from discontinued operations, net
   
(750
)
 
(24
)
Cumulative effect of change in accounting principle, net
   
-
   
(8
)

 
 
 
Net income (loss)
 
$
(728
)
$
69
 

 
 
 
Basic income (loss) per share:
   
 
   
 
 
Income from continuing operations before change in
   
 
   
 
 
accounting principle
 
$
0.05
 
$
0.23
 
Loss from discontinued operations, net
   
(1.71
)
 
(0.05
)
Cumulative effect of change in accounting principle, net
   
-
   
(0.02
)

 
 
 
Net income (loss)
 
$
(1.66
)
$
0.16
 

 
 
 
Diluted income (loss) per share:
   
 
   
 
 
Income from continuing operations before change in
   
 
   
 
 
accounting principle
 
$
0.05
 
$
0.23
 
Loss from discontinued operations, net
   
(1.71
)
 
(0.05
)
Cumulative effect of change in accounting principle, net
   
-
   
(0.02
)

 
 
 
Net income (loss)
 
$
(1.66
)
$
0.16
 

 
 
 
Basic weighted average common shares outstanding
   
437
   
434
 
Diluted weighted average common shares outstanding
   
440
   
436
 

See Footnote Table 1 for a list of significant items included in operating income.

 
 
     

 
 
HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets (1)
(Millions of dollars)
(Unaudited)

 
 
June 30
March 31
   
 
 
2004
2003
2004

 
Assets
 
 
 
 
 
   
 
   
 
   
 
 
Current assets:
   
 
   
 
   
 
 
Cash and equivalents
 
$
2,230
 
$
1,859
 
$
1,933
 
Total receivables, net
   
5,776
   
3,666
   
5,720
 
Inventories
   
741
   
747
   
743
 
Other current assets
   
784
   
503
   
867
 

 
 
 
 
Total current assets
   
9,531
   
6,775
   
9,263
 
 
   
 
   
 
   
 
 
Property, plant, and equipment, net
   
2,564
   
2,498
   
2,537
 
Insurance for asbestos- and silica-related liabilities (2)
   
468
   
2,059
   
1,535
 
Other assets
   
2,956
   
2,690
   
3,072
 

 
 
 
 
Total assets
 
$
15,519
 
$
14,022
 
$
16,407
 

 
 
 
 
 
   
 
   
 
   
 
 
Liabilities and Shareholders’ Equity
   
 
   
 
   
 
 
 
   
 
   
 
   
 
 
Current liabilities:
   
 
   
 
   
 
 
Asbestos- and silica-related liabilities
 
$
2,399
 
$
-
 
$
2,505
 
Accounts payable
   
2,087
   
1,056
   
2,102
 
Current maturities of long-term debt
   
50
   
166
   
23
 
Other current liabilities
   
2,293
   
2,095
   
2,293
 

 
 
 
 
Total current liabilities
   
6,829
   
3,317
   
6,923
 
 
   
 
   
 
   
 
 
Long-term debt
   
3,900
   
2,374
   
3,934
 
Asbestos- and silica-related liabilities
   
1,754
   
3,396
   
1,769
 
Other liabilities
   
1,180
   
1,293
   
1,199
 

 
 
 
 
Total liabilities
   
13,663
   
10,380
   
13,825
 

 
 
 
 
Minority interest in consolidated subsidiaries
   
116
   
83
   
110
 
Shareholders’ equity
   
1,740
   
3,559
   
2,472
 

 
 
 
 
Total liabilities and shareholders’ equity
 
$
15,519
 
$
14,022
 
$
16,407
 

 
 
 
 

(1)These Condensed Consolidated Balance Sheets do not include a breakout of prepetition liabilities. This information will be provided in our second quarter 2004 Form 10-Q.
(2)The decrease in “Insurance for asbestos- and silica-related liabilities” reflects the reclassification of $500 million from noncurrent to current in the first quarter of 2004; reclassification of $379 million from noncurrent to current in the second quarter of 2004; and a $680 million write-down in the second quarter of 2004 resulting from settlement agreements with insurance carriers.
   


 


 
     

 
 
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Geographic Region – Energy Services Group Only
(Millions of dollars)
(Unaudited)

 
 
 
 
 
 
Three Months Ended
Three Months Ended
 
 
June 30
March 31
   
 
 
2004
2003
2004

 
 
 
 
Revenues:
   
 
   
 
   
 
 
North America
 
$
846
 
$
762
 
$
814
 
Latin America
   
257
   
226
   
229
 
Europe/Africa
   
397
   
394
   
372
 
Middle East/Asia
   
404
   
398
   
401
 

 
 
 
 
Total revenues
 
$
1,904
 
$
1,780
 
$
1,816
 

 
 
 
 
 
   
 
   
 
   
 
 
Operating Income:
   
 
   
 
   
 
 
North America
 
$
152
 
$
91
 
$
118
 
Latin America
   
36
   
43
   
30
 
Europe/Africa
   
26
   
51
   
19
 
Middle East/Asia
   
57
   
50
   
47
 

 
 
 
 
Total operating income
 
$
271
 
$
235
 
$
214
 

 
 
 
 



 
 
Six Months Ended
 
 
June 30
   
 
 
2004
2003

 
 
 
Revenues:
   
 
   
 
 
North America
 
$
1,660
 
$
1,507
 
Latin America
   
486
   
408
 
Europe/Africa
   
769
   
736
 
Middle East/Asia
   
805
   
740
 

 
 
 
Total revenues
 
$
3,720
 
$
3,391
 

 
 
 
 
   
 
   
 
 
Operating Income:
   
 
   
 
 
North America
 
$
270
 
$
175
 
Latin America
   
66
   
66
 
Europe/Africa
   
45
   
83
 
Middle East/Asia
   
104
   
91
 

 
 
 
Total operating income
 
$
485
 
$
415
 

 
 
 

See Footnote Table 2 for a list of significant items included in operating income.




















 
     

 
FOOTNOTE TABLE 1

HALLIBURTON COMPANY
Items included in Operating Income by Operating Segment
(Millions of dollars except per share data)
(Unaudited)


 
 
Three Months Ended
Three Months Ended
Three Months Ended
 
 
June 30
June 30
March 31
 
 
2004
2003
2004
   


 
 
Operating
After Tax
Operating
After Tax
Operating
After Tax
 
 
Income
per Share
Income
per Share
Income
per Share
   
 
 
 
 
 
 
Production Optimization:
   
 
   
 
   
 
   
 
   
 
   
 
 
HMS gain on sale
 
$
-
 
$
-
 
$
24
 
$
0.03
 
$
-
 
$
-
 
Landmark and Other
   
 
   
 
   
 
   
 
   
 
   
 
 
Energy Services:
   
 
   
 
   
 
   
 
   
 
   
 
 
Anglo-Dutch lawsuit
   
-
   
-
   
-
   
-
   
13
   
0.02
 
Engineering and
   
 
   
 
   
 
   
 
   
 
   
 
 
Construction Group:
   
 
   
 
   
 
   
 
   
 
   
 
 
Barracuda-Caratinga
   
 
   
 
   
 
   
 
   
 
   
 
 
   project loss
   
(310
)
 
(0.46
)
 
(173
)
 
(0.24
)
 
(97
)
 
(0.14
)





 
 
Six Months Ended
Six Months Ended
 
 
June 30
June 30
 
 
2004
2003
   

 
 
Operating
After Tax
Operating
After Tax
 
 
Income
per Share
Income
per Share
   
 
 
 
 
Production Optimization:
   
 
   
 
   
 
   
 
 
HMS gain on sale
 
$
-
 
$
-
 
$
24
 
$
0.03
 
Drilling and Formation Evaluation:
   
 
   
 
   
 
   
 
 
Mono Pumps gain on sale
   
-
   
-
   
36
   
0.05
 
Landmark and Other Energy Services:
   
 
   
 
   
 
   
 
 
Anglo-Dutch lawsuit
   
13
   
0.02
   
-
   
-
 
Wellstream loss on sale
   
-
   
-
   
(15
)
 
(0.03
)
Engineering and Construction Group:
   
 
   
 
   
 
   
 
 
Asbestos and silica liability
   
-
   
-
   
(2
)
 
-
 
Barracuda-Caratinga project loss
   
(407
)
 
(0.60
)
 
(228
)
 
(0.32
)
 

 
     

 
 
FOOTNOTE TABLE 2

HALLIBURTON COMPANY
Items included in Operating Income
By Geographic Region – Energy Services Group Only
(Millions of dollars except per share data)
(Unaudited)


 
 
Three Months Ended
Three Months Ended
Three Months Ended
 
 
June 30
June 30
March 31
 
 
2004
2003
2004
   


 
 
Operating
After Tax
Operating
After Tax
Operating
After Tax
 
 
Income
per Share
Income
per Share
Income
per Share
   
 
 
 
 
 
 
North America:
   
 
   
 
   
 
   
 
   
 
   
 
 
Anglo-Dutch lawsuit
 
$
-
 
$
-
 
$
-
 
$
-
 
$
13
 
$
0.02
 
HMS gain on sale
   
-
   
-
   
24
   
0.03
   
-
   
-
 





 
 
Six Months Ended
Six Months Ended
 
 
June 30
June 30
 
 
2004
2003
   

 
 
Operating
After Tax
Operating
After Tax
 
 
Income
per Share
Income
per Share
   
 
 
 
 
North America:
   
 
   
 
   
 
   
 
 
Anglo-Dutch lawsuit
 
$
13
 
$
0.02
 
$
-
 
$
-
 
Mono Pumps gain on sale
   
-
   
-
   
24
   
0.03
 
Wellstream loss on sale
   
-
   
-
   
(11
)
 
(0.02
)
HMS gain on sale
   
-
   
-
   
24
   
0.03
 
Europe/Africa:
   
 
   
 
   
 
   
 
 
Mono Pumps gain on sale
   
-
   
-
   
12
   
0.02
 
Wellstream loss on sale
   
-
   
-
   
(4
)
 
(0.01
)































###
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


                       


 
 
HALLIBURTON COMPANY
 
 
 
 
 
 
Date:    July 23, 2004
By:
 /s/ Margaret E. Carriere
 
 
Margaret E. Carriere
 
 
Vice President and Secretary