HOUSTON--(BUSINESS WIRE)--Jan. 25, 2013--
Halliburton (NYSE:HAL) announced today that income from continuing
operations for the fourth quarter of 2012 was $589 million, or $0.63 per
diluted share. This compares to reported income from continuing
operations for the third quarter of 2012 of $608 million, or $0.65 per
diluted share. Adjusted income from continuing operations for the third
quarter of 2012 was $625 million, or $0.67 per diluted share, excluding
a $30 million after-tax ($0.03 per diluted share) acquisition-related
charge and a $13 million after-tax ($0.01 per diluted share) gain from
the settlement of a patent infringement case.
Halliburton’s total revenue in the fourth quarter of 2012 was $7.3
billion, compared to $7.1 billion in the third quarter of 2012. Total
operating income was $981 million in the fourth quarter of 2012,
compared to $954 million in the third quarter of 2012. Strong growth in
our international regions, particularly in Middle East/Asia and Latin
America, more than offset seasonally lower activity levels in North
America.
Halliburton’s total revenue was $28.5 billion for the full year 2012, an
increase of $3.7 billion, or 15%, from 2011. Total operating income
decreased $578 million, or 12%, from 2011 mainly due to higher guar
costs and pricing pressure for production enhancement services in North
America and a $300 million charge for an estimated loss contingency
related to the Macondo well incident. Income from continuing operations
for the full year 2012 was $2.6 billion, or $2.78 per diluted share,
compared to full year 2011 income from continuing operations of $3.0
billion, or $3.26 per diluted share.
“I am very proud to say that our company delivered industry-leading
revenue growth in 2012, resulting in a record year,” commented Dave
Lesar, chairman, president and chief executive officer.
“From a revenue perspective, we set new records this year in all of our
regions and both of our divisions. From an operating income perspective,
we achieved new records in our Latin America region and in five of our
twelve product lines.
“In the fourth quarter, revenue of $7.3 billion was up 3% sequentially
and represents the highest quarterly revenue in company history. All
three of our international regions and eight of our twelve product lines
set new revenue records.
“Fourth quarter operating income of $981 million was flat with adjusted
results from the prior quarter. These results were driven by our
international regions, where we also saw fourth quarter revenue and
operating income growth of 20% and 39%, respectively, compared to the
fourth quarter of 2011. I am also proud to say that both our Latin
America and Middle East/Asia regions, as well as our completion tools
product line, achieved record operating income.
“Latin America revenue was up 14% sequentially, despite a 2% drop in the
rig count, and adjusted operating income increased 25% sequentially.
Increased drilling fluids service activity, along with higher software
sales in Mexico and Colombia, led the growth for the region.
“In the Eastern Hemisphere, revenue grew 11% sequentially, and operating
income increased 35% sequentially, driven by year-end sales of
completion tools, software, and other equipment. We believe activity
levels will continue to grow in 2013, and anticipate full-year margins
should average in the upper teens.
“Sequentially, Middle East/Asia revenue and operating income increased
14% and 46%, respectively. The growth was driven by higher year-end
software, equipment, and completion tools sales, as well as increased
service activity in Saudi Arabia and Australia.
“In Europe/Africa/CIS, we saw revenue and operating income increase 8%
and 23%, respectively, compared to the prior quarter. The improvement
was driven by the seasonally higher year-end completion tool sales in
Angola and the North Sea, greater demand for drilling services in the
North Sea and Russia, and increased service activity in East Africa.
“North America revenue was down 5% compared to the previous quarter, in
line with the sequential 5% drop in the United States land rig count.
Operating income was down 22% compared to adjusted third quarter
results, driven mainly by an unusually high post-Thanksgiving decline in
activity levels with key customers, increased consumption of our high
priced supply of guar, and continued pricing pressure around hydraulic
fracturing contracts.
“Our North America margins are also temporarily being negatively
impacted by the upfront roll out costs of our Frac of the Future
initiative, by our commitment to our customers to remain active in the
North America natural gas basins at lower margins, and by our decision
to stack equipment during the fourth quarter.
“In 2013, we anticipate the North America rig count will improve from
fourth quarter levels but will be down slightly compared to 2012. We are
committed to our leadership position in North America, and are focused
on rebuilding margins as we recover from last year’s elevated guar
costs, reap the benefits of our strategic initiatives, and look at all
of our costs. Lastly, we remain laser-focused on capital discipline,
especially in pressure pumping,” concluded Lesar.
2012 Fourth Quarter Results
Completion and Production
Completion and Production (C&P) revenue in the fourth quarter of 2012
was $4.3 billion, an increase of $44 million, or 1%, from the third
quarter of 2012. Higher completion activity in the Gulf of Mexico and
increased direct sales internationally more than offset seasonally lower
activity levels in the United States land market.
C&P operating income in the fourth quarter of 2012 was $603 million, an
increase of $12 million, or 2%, from the third quarter of 2012.
Excluding the impact of the acquisition-related charge in the third
quarter, C&P operating income decreased $36 million, or 6%. North
America C&P operating income decreased $68 million, or 18%, compared to
the third quarter of 2012. Excluding the third quarter
acquisition-related charge, North America C&P operating income decreased
$108 million, or 26%, from the third quarter of 2012, primarily due to
seasonally affected activity levels, higher input costs, and pricing
pressure associated with production enhancement services. Latin America
C&P operating income improved $17 million, or 43%, compared to the third
quarter of 2012. Excluding the third quarter acquisition-related charge,
Latin America C&P operating income improved $9 million, or 19%, compared
to the third quarter of 2012, as improved profitability in Argentina
more than offset lower completions activity in Mexico. Europe/Africa/CIS
C&P operating income increased $19 million, or 22%, from the third
quarter of 2012, driven by increased completions activity in Angola and
Norway. Middle East/Asia C&P operating income improved $44 million, or
55%, compared to the third quarter of 2012, as a result of higher
activity in most product lines in Saudi Arabia and Australia, as well as
increased direct sales in China and Saudi Arabia.
Drilling and Evaluation
Drilling and Evaluation (D&E) revenue in the fourth quarter of 2012 was
$3.0 billion, an increase of $135 million, or 5%, from the third quarter
of 2012, as higher drilling activity in Latin America and year-end
software sales more than offset seasonally lower activity levels in the
United States land market.
D&E operating income in the fourth quarter of 2012 was $484 million, an
increase of $54 million, or 13%, from the third quarter of 2012. North
America D&E operating income decreased $24 million, or 14%, from the
third quarter of 2012, primarily due to lower drilling and wireline
activity in the United States land market, which was partially offset by
increased demand for drilling services in Canada and the Gulf of Mexico
and year-end software sales. Latin America D&E operating income
increased $30 million, or 28%, from the third quarter of 2012, as
increased software sales, fluids activity, and consulting services in
Mexico and Colombia were partially offset by lower wireline activity and
software sales in Brazil. Europe/Africa/CIS D&E operating income
increased $16 million, or 25%, from the third quarter of 2012 as a
result of increased demand for drilling services in the North Sea,
year-end software sales in Russia, and higher wireline profitability in
Angola, which were partially offset by lower profitability for fluid
services in Norway. Middle East/Asia D&E operating income increased $32
million, or 37%, from the third quarter of 2012, due to seasonally
higher year-end software and activity improvements across the region.
Corporate and Other
During the fourth quarter of 2012, Halliburton invested an additional
$36 million, pre-tax, in strategic projects aimed at strengthening
Halliburton’s North America service delivery model and repositioning
technology, supply chain, and manufacturing infrastructure to support
projected international growth. Halliburton expects to continue funding
this effort in 2013.
Significant Recent Events and Achievements
-
Halliburton was selected by TNK-BP to provide an integrated services
solution to increase production from the complex and challenging tight
oil reserves in the Em-Yoga license area of Russia's Krasnoleninskoe
oil and natural gas field in Nyagan, Western Siberia. The two-year
contract calls for Halliburton to provide subsurface consulting,
project management, well construction, and completion services,
including directional drilling, logging-while-drilling, fluids, bits,
cementing, completion tools, coiled tubing, and multistage fracturing
stimulation services, for multiple wells in Nyagan.
-
Halliburton, Apache Corporation, and Caterpillar have developed
innovative dual-fuel technology capable of safely and efficiently
powering the pumping equipment used for fracturing treatments with a
mixture of natural gas and diesel.
-
Halliburton was recognized at the 11th Annual World Oil Awards with
“Best” awards for its Frac of the Future equipment suite in the Best
Health, Safety, Environment/Sustainable Development Onshore category
and for its DecisionSpace® well planning software in the Best
Visualization and Collaboration category.
Founded in 1919, Halliburton is one of the world’s largest providers of
products and services to the energy industry. With more than 72,000
employees, representing 140 nationalities in approximately 80 countries,
the company serves the upstream oil and gas industry 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 through the life of the field.
Visit the company’s website 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: results of litigation, settlements, and
investigations; actions by third parties, including governmental
agencies; changes in the demand for or price of oil and/or natural gas
can be significantly impacted by weakness in the worldwide economy;
consequences of audits and investigations by domestic and foreign
government agencies and legislative bodies and related publicity and
potential adverse proceedings by such agencies; 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 offshore oil and natural gas exploration, radioactive
sources, explosives, chemicals, hydraulic fracturing services, and
climate-related initiatives; 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
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;
impairment of oil and natural gas properties; structural changes in the
oil and natural gas industry; maintaining a highly skilled workforce;
availability and cost of raw materials; and integration of acquired
businesses and operations of joint ventures. Halliburton’s Form 10-K for
the year ended December 31, 2011, Form 10-Q for the quarter ended
September 30, 2012, 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.
|
|
|
HALLIBURTON COMPANY
Condensed Consolidated Statements of
Operations
(Millions of dollars and shares except per share
data)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31
|
|
September 30
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
Revenue:
|
|
|
|
|
|
|
|
Completion and Production
|
|
$
|
4,337
|
|
|
$
|
4,328
|
|
|
$
|
4,293
|
|
|
Drilling and Evaluation
|
|
2,953
|
|
|
2,736
|
|
|
2,818
|
|
|
Total revenue
|
|
$
|
7,290
|
|
|
$
|
7,064
|
|
|
$
|
7,111
|
|
|
Operating income:
|
|
|
|
|
|
|
|
Completion and Production
|
|
$
|
603
|
|
|
$
|
1,087
|
|
|
$
|
591
|
|
|
Drilling and Evaluation
|
|
484
|
|
|
480
|
|
|
430
|
|
|
Corporate and other
|
|
(106
|
)
|
|
(137
|
)
|
|
(67
|
)
|
|
Total operating income
|
|
981
|
|
|
1,430
|
|
|
954
|
|
|
Interest expense, net
|
|
(73
|
)
|
|
(69
|
)
|
|
(71
|
)
|
|
Other, net
|
|
(9
|
)
|
|
(7
|
)
|
|
(6
|
)
|
|
Income from continuing operations before income taxes
|
|
899
|
|
|
1,354
|
|
|
877
|
|
|
Provision for income taxes
|
|
(307
|
)
|
|
(447
|
)
|
|
(267
|
)
|
|
Income from continuing operations
|
|
592
|
|
|
907
|
|
|
610
|
|
|
Income (loss) from discontinued operations, net (a)
|
|
80
|
|
|
—
|
|
|
(6
|
)
|
|
Net income
|
|
$
|
672
|
|
|
$
|
907
|
|
|
$
|
604
|
|
|
Noncontrolling interest in net income of subsidiaries
|
|
(3
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
Net income attributable to company
|
|
$
|
669
|
|
|
$
|
906
|
|
|
$
|
602
|
|
|
Amounts attributable to company shareholders:
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
589
|
|
|
$
|
906
|
|
|
$
|
608
|
|
|
Income (loss) from discontinued operations, net (a)
|
|
80
|
|
|
—
|
|
|
(6
|
)
|
|
Net income attributable to company
|
|
$
|
669
|
|
|
$
|
906
|
|
|
$
|
602
|
|
|
Basic income per share attributable to company shareholders:
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.63
|
|
|
$
|
0.98
|
|
|
$
|
0.66
|
|
|
Income (loss) from discontinued operations, net (a)
|
|
0.09
|
|
|
—
|
|
|
(0.01
|
)
|
|
Net income per share
|
|
$
|
0.72
|
|
|
$
|
0.98
|
|
|
$
|
0.65
|
|
|
Diluted income per share attributable to company shareholders:
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.63
|
|
|
$
|
0.98
|
|
|
$
|
0.65
|
|
|
Income (loss) from discontinued operations, net (a)
|
|
0.09
|
|
|
—
|
|
|
—
|
|
|
Net income per share
|
|
$
|
0.72
|
|
|
$
|
0.98
|
|
|
$
|
0.65
|
|
|
Basic weighted average common shares outstanding
|
|
928
|
|
|
921
|
|
|
928
|
|
|
Diluted weighted average common shares outstanding
|
|
931
|
|
|
923
|
|
|
930
|
|
|
(a)
|
|
Includes an $80 million tax benefit in the three months ended
December 31, 2012 related to a payment to Petrobras under a
guarantee relating to work performed on the Barracuda-Caratinga
project by KBR, Inc.
|
|
See Footnote Table 1 for a list of significant items included in
operating income.
|
|
See Footnote Table 3 for adjusted total operating income excluding
certain items.
|
|
|
|
HALLIBURTON COMPANY
Condensed Consolidated Statements of
Operations
(Millions of dollars and shares except per share
data)
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended December 31
|
|
|
|
2012
|
|
2011
|
|
Revenue:
|
|
|
|
|
|
Completion and Production
|
|
$
|
17,380
|
|
|
$
|
15,143
|
|
|
Drilling and Evaluation
|
|
11,123
|
|
|
9,686
|
|
|
Total revenue
|
|
$
|
28,503
|
|
|
$
|
24,829
|
|
|
Operating income:
|
|
|
|
|
|
Completion and Production
|
|
$
|
3,144
|
|
|
$
|
3,733
|
|
|
Drilling and Evaluation
|
|
1,675
|
|
|
1,403
|
|
|
Corporate and other (a)
|
|
(660
|
)
|
|
(399
|
)
|
|
Total operating income
|
|
4,159
|
|
|
4,737
|
|
|
Interest expense, net
|
|
(298
|
)
|
|
(263
|
)
|
|
Other, net
|
|
(39
|
)
|
|
(25
|
)
|
|
Income from continuing operations before income taxes
|
|
3,822
|
|
|
4,449
|
|
|
Provision for income taxes
|
|
(1,235
|
)
|
|
(1,439
|
)
|
|
Income from continuing operations
|
|
2,587
|
|
|
3,010
|
|
|
Income (loss) from discontinued operations, net (b) (c)
|
|
58
|
|
|
(166
|
)
|
|
Net income
|
|
$
|
2,645
|
|
|
$
|
2,844
|
|
|
Noncontrolling interest in net income of subsidiaries
|
|
(10
|
)
|
|
(5
|
)
|
|
Net income attributable to company
|
|
$
|
2,635
|
|
|
$
|
2,839
|
|
|
Amounts attributable to company shareholders:
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
2,577
|
|
|
$
|
3,005
|
|
|
Income (loss) from discontinued operations, net (b) (c)
|
|
58
|
|
|
(166
|
)
|
|
Net income attributable to company
|
|
$
|
2,635
|
|
|
$
|
2,839
|
|
|
Basic income per share attributable to company shareholders:
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
2.78
|
|
|
$
|
3.27
|
|
|
Income (loss) from discontinued operations, net (b) (c)
|
|
0.07
|
|
|
(0.18
|
)
|
|
Net income per share
|
|
$
|
2.85
|
|
|
$
|
3.09
|
|
|
Diluted income per share attributable to company shareholders:
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
2.78
|
|
|
$
|
3.26
|
|
|
Income (loss) from discontinued operations, net (b) (c)
|
|
0.06
|
|
|
(0.18
|
)
|
|
Net income per share
|
|
$
|
2.84
|
|
|
$
|
3.08
|
|
|
Basic weighted average common shares outstanding
|
|
926
|
|
|
918
|
|
|
Diluted weighted average common shares outstanding
|
|
928
|
|
|
922
|
|
|
(a)
|
|
Includes, among other items, a $300 million, pre-tax, charge in 2012
related to the Macondo well incident.
|
|
(b)
|
|
Includes an $80 million tax benefit in 2012 related to a payment
to Petrobras under a guarantee relating to work performed on the
Barracuda-Caratinga project by KBR, Inc.
|
|
(c)
|
|
Includes, among other items, a $163 million loss in 2011 for an
arbitration award against KBR, Inc. relating to the
Barracuda-Caratinga project, a project for which Halliburton had
provided a guarantee.
|
|
|
|
|
|
See Footnote Table 2 for a list of significant items included in
operating income.
|
|
|
|
HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions
of dollars)
(Unaudited)
|
|
|
|
|
|
December 31
|
|
|
|
2012
|
|
2011
|
|
Assets
|
|
Current assets:
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
2,484
|
|
|
$
|
2,698
|
|
Receivables, net
|
|
5,787
|
|
|
5,084
|
|
Inventories
|
|
3,186
|
|
|
2,570
|
|
Other current assets (a)
|
|
1,629
|
|
|
1,225
|
|
Total current assets
|
|
13,086
|
|
|
11,577
|
|
|
|
|
|
|
|
Property, plant, and equipment, net
|
|
10,257
|
|
|
8,492
|
|
Goodwill
|
|
2,135
|
|
|
1,776
|
|
Other assets (b)
|
|
1,932
|
|
|
1,832
|
|
Total assets
|
|
$
|
27,410
|
|
|
$
|
23,677
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
2,041
|
|
|
$
|
1,826
|
|
Accrued employee compensation and benefits
|
|
930
|
|
|
862
|
|
Other current liabilities
|
|
1,781
|
|
|
1,433
|
|
Total current liabilities
|
|
4,752
|
|
|
4,121
|
|
|
|
|
|
|
|
Long-term debt
|
|
4,820
|
|
|
4,820
|
|
Other liabilities
|
|
2,048
|
|
|
1,520
|
|
Total liabilities
|
|
11,620
|
|
|
10,461
|
|
|
|
|
|
|
|
Company shareholders’ equity
|
|
15,765
|
|
|
13,198
|
|
Noncontrolling interest in consolidated subsidiaries
|
|
25
|
|
|
18
|
|
Total shareholders’ equity
|
|
15,790
|
|
|
13,216
|
|
Total liabilities and shareholders’ equity
|
|
$
|
27,410
|
|
|
$
|
23,677
|
|
(a)
|
|
Includes $270 million of investments in fixed income securities at
December 31, 2012 and $150 million of fixed income securities at
December 31, 2011.
|
|
(b)
|
|
Includes $128 million of investments in fixed income securities at
December 31, 2012.
|
|
|
|
|
|
HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash
Flows
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
Year Ended
|
|
|
|
December 31
|
|
|
|
2012
|
|
2011
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
2,645
|
|
|
$
|
2,844
|
|
|
Adjustments to reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
Depreciation, depletion, and amortization
|
|
1,628
|
|
|
1,359
|
|
|
Loss contingency for Macondo well incident
|
|
300
|
|
|
—
|
|
|
(Income) loss from discontinued operations
|
|
(58
|
)
|
|
166
|
|
|
Other, primarily working capital
|
|
(861
|
)
|
|
(685
|
)
|
|
Total cash flows from operating activities
|
|
3,654
|
|
|
3,684
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
(3,566
|
)
|
|
(2,953
|
)
|
|
Purchases of investment securities
|
|
(506
|
)
|
|
(501
|
)
|
|
Sales of property, plant, and equipment
|
|
395
|
|
|
160
|
|
|
Sales of investment securities
|
|
258
|
|
|
1,001
|
|
|
Acquisitions, net of cash acquired
|
|
(214
|
)
|
|
(880
|
)
|
|
Other
|
|
(55
|
)
|
|
(17
|
)
|
|
Total cash flows from investing activities
|
|
(3,688
|
)
|
|
(3,190
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Dividends to shareholders
|
|
(333
|
)
|
|
(330
|
)
|
|
Proceeds from long-term borrowings, net of offering costs
|
|
—
|
|
|
978
|
|
|
Other
|
|
161
|
|
|
185
|
|
|
Total cash flows from financing activities
|
|
(172
|
)
|
|
833
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
(8
|
)
|
|
(27
|
)
|
|
Increase (decrease) in cash and equivalents
|
|
(214
|
)
|
|
1,300
|
|
|
Cash and equivalents at beginning of year
|
|
2,698
|
|
|
1,398
|
|
|
Cash and equivalents at end of year
|
|
$
|
2,484
|
|
|
$
|
2,698
|
|
|
|
|
|
|
|
|
|
|
|
|
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By
Segment and Geographic Region
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31
|
|
September 30
|
|
Revenue by geographic region:
|
|
2012
|
|
2011
|
|
2012
|
|
Completion and Production:
|
|
|
|
|
|
|
|
North America
|
|
$
|
2,830
|
|
|
$
|
3,148
|
|
|
$
|
2,978
|
|
|
Latin America
|
|
396
|
|
|
312
|
|
|
373
|
|
|
Europe/Africa/CIS
|
|
569
|
|
|
497
|
|
|
523
|
|
|
Middle East/Asia
|
|
542
|
|
|
371
|
|
|
419
|
|
|
Total
|
|
4,337
|
|
|
4,328
|
|
|
4,293
|
|
|
Drilling and Evaluation:
|
|
|
|
|
|
|
|
North America
|
|
923
|
|
|
962
|
|
|
965
|
|
|
Latin America
|
|
687
|
|
|
565
|
|
|
579
|
|
|
Europe/Africa/CIS
|
|
645
|
|
|
588
|
|
|
605
|
|
|
Middle East/Asia
|
|
698
|
|
|
621
|
|
|
669
|
|
|
Total
|
|
2,953
|
|
|
2,736
|
|
|
2,818
|
|
|
Total revenue by region:
|
|
|
|
|
|
|
|
North America
|
|
3,753
|
|
|
4,110
|
|
|
3,943
|
|
|
Latin America
|
|
1,083
|
|
|
877
|
|
|
952
|
|
|
Europe/Africa/CIS
|
|
1,214
|
|
|
1,085
|
|
|
1,128
|
|
|
Middle East/Asia
|
|
1,240
|
|
|
992
|
|
|
1,088
|
|
|
|
|
|
|
|
|
|
|
Operating income by geographic region:
|
|
|
|
|
|
|
|
Completion and Production:
|
|
|
|
|
|
|
|
North America
|
|
$
|
315
|
|
|
$
|
940
|
|
|
$
|
383
|
|
|
Latin America
|
|
57
|
|
|
51
|
|
|
40
|
|
|
Europe/Africa/CIS
|
|
107
|
|
|
44
|
|
|
88
|
|
|
Middle East/Asia
|
|
124
|
|
|
52
|
|
|
80
|
|
|
Total
|
|
603
|
|
|
1,087
|
|
|
591
|
|
|
Drilling and Evaluation:
|
|
|
|
|
|
|
|
North America
|
|
150
|
|
|
178
|
|
|
174
|
|
|
Latin America
|
|
136
|
|
|
119
|
|
|
106
|
|
|
Europe/Africa/CIS
|
|
79
|
|
|
65
|
|
|
63
|
|
|
Middle East/Asia
|
|
119
|
|
|
118
|
|
|
87
|
|
|
Total
|
|
484
|
|
|
480
|
|
|
430
|
|
|
Total operating income by region:
|
|
|
|
|
|
|
|
North America
|
|
465
|
|
|
1,118
|
|
|
557
|
|
|
Latin America
|
|
193
|
|
|
170
|
|
|
146
|
|
|
Europe/Africa/CIS
|
|
186
|
|
|
109
|
|
|
151
|
|
|
Middle East/Asia
|
|
243
|
|
|
170
|
|
|
167
|
|
|
Corporate and other
|
|
(106
|
)
|
|
(137
|
)
|
|
(67
|
)
|
|
Total operating income
|
|
$
|
981
|
|
|
$
|
1,430
|
|
|
$
|
954
|
|
|
See Footnote Table 1 for a list of significant items included in
operating income.
|
|
See Footnote Table 3 for adjusted total operating income excluding
certain items.
|
|
|
|
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By
Segment and Geographic Region
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
Year Ended December 31
|
|
Revenue by geographic region:
|
|
2012
|
|
2011
|
|
Completion and Production:
|
|
|
|
|
|
North America
|
|
$
|
12,157
|
|
|
$
|
10,907
|
|
|
Latin America
|
|
1,415
|
|
|
1,117
|
|
|
Europe/Africa/CIS
|
|
2,099
|
|
|
1,746
|
|
|
Middle East/Asia
|
|
1,709
|
|
|
1,373
|
|
|
Total
|
|
17,380
|
|
|
15,143
|
|
|
Drilling and Evaluation:
|
|
|
|
|
|
North America
|
|
3,847
|
|
|
3,506
|
|
|
Latin America
|
|
2,279
|
|
|
1,865
|
|
|
Europe/Africa/CIS
|
|
2,411
|
|
|
2,210
|
|
|
Middle East/Asia
|
|
2,586
|
|
|
2,105
|
|
|
Total
|
|
11,123
|
|
|
9,686
|
|
|
Total revenue by region:
|
|
|
|
|
|
North America
|
|
16,004
|
|
|
14,413
|
|
|
Latin America
|
|
3,694
|
|
|
2,982
|
|
|
Europe/Africa/CIS
|
|
4,510
|
|
|
3,956
|
|
|
Middle East/Asia
|
|
4,295
|
|
|
3,478
|
|
|
|
|
|
|
|
|
Operating income by geographic region:
|
|
|
|
|
|
Completion and Production:
|
|
|
|
|
|
North America
|
|
$
|
2,260
|
|
|
$
|
3,341
|
|
|
Latin America
|
|
206
|
|
|
159
|
|
|
Europe/Africa/CIS
|
|
347
|
|
|
48
|
|
|
Middle East/Asia
|
|
331
|
|
|
185
|
|
|
Total
|
|
3,144
|
|
|
3,733
|
|
|
Drilling and Evaluation:
|
|
|
|
|
|
North America
|
|
680
|
|
|
641
|
|
|
Latin America
|
|
393
|
|
|
305
|
|
|
Europe/Africa/CIS
|
|
246
|
|
|
191
|
|
|
Middle East/Asia
|
|
356
|
|
|
266
|
|
|
Total
|
|
1,675
|
|
|
1,403
|
|
|
Total operating income by region:
|
|
|
|
|
|
North America
|
|
2,940
|
|
|
3,982
|
|
|
Latin America
|
|
599
|
|
|
464
|
|
|
Europe/Africa/CIS
|
|
593
|
|
|
239
|
|
|
Middle East/Asia
|
|
687
|
|
|
451
|
|
|
Corporate and other
|
|
(660
|
)
|
|
(399
|
)
|
|
Total operating income
|
|
$
|
4,159
|
|
|
$
|
4,737
|
|
|
See Footnote Table 2 for a list of significant items included in
operating income.
|
|
|
|
FOOTNOTE TABLE 1
HALLIBURTON COMPANY
Items
Included in Operating Income
(Millions of dollars except per
share data)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
|
December 31, 2011
|
|
September 30, 2012
|
|
|
|
Operating
|
|
After Tax
|
|
Operating
|
|
After Tax
|
|
|
|
Income
|
|
per Share
|
|
Income
|
|
per Share
|
|
Completion and Production:
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
|
|
|
Acquisition-related charge
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(40
|
)
|
|
$
|
(0.02
|
)
|
|
Latin America
|
|
|
|
|
|
|
|
|
|
Acquisition-related charge
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(0.01
|
)
|
|
Corporate and other:
|
|
|
|
|
|
|
|
|
|
Environmental charge
|
|
(24
|
)
|
|
(0.02
|
)
|
|
—
|
|
|
—
|
|
|
Patent infringement case settlement
|
|
—
|
|
|
—
|
|
|
20
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTE TABLE 2
HALLIBURTON COMPANY
Items
Included in Operating Income
(Millions of dollars except per
share data)
(Unaudited)
|
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
|
|
December 31, 2012
|
|
December 31, 2011
|
|
|
|
Operating
|
|
After Tax
|
|
Operating
|
|
After Tax
|
|
|
|
Income
|
|
per Share
|
|
Income
|
|
per Share
|
|
Completion and Production:
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
|
|
|
Acquisition-related charge
|
|
$
|
(40
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Latin America
|
|
|
|
|
|
|
|
|
|
Acquisition-related charge
|
|
(8
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
Europe/Africa/CIS
|
|
|
|
|
|
|
|
|
|
Asset impairment charge
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
(0.02
|
)
|
|
Employee separation costs
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(0.01
|
)
|
|
Libya reserve
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
(0.03
|
)
|
|
Middle East/Asia
|
|
|
|
|
|
|
|
|
|
Employee separation costs
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
Drilling and Evaluation:
|
|
|
|
|
|
|
|
|
|
Europe/Africa/CIS
|
|
|
|
|
|
|
|
|
|
Employee separation costs
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
Libya reserve
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
(0.02
|
)
|
|
Middle East/Asia
|
|
|
|
|
|
|
|
|
|
Employee separation costs
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
Corporate and other:
|
|
|
|
|
|
|
|
|
|
Macondo-related charge
|
|
(300
|
)
|
|
(0.20
|
)
|
|
—
|
|
|
—
|
|
|
Patent infringement case settlement
|
|
20
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
Environmental charge
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTE TABLE 3
HALLIBURTON COMPANY
Adjusted
Total Operating Income Excluding Certain Items
By Segment and
Geographic Region
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31
|
|
September 30
|
|
Adjusted operating income by geographic region: (a) (b)
|
|
2012
|
2011
|
|
2012
|
|
Completion and Production:
|
|
|
|
|
|
|
North America
|
|
$
|
315
|
|
$
|
940
|
|
|
$
|
423
|
|
|
Latin America
|
|
57
|
|
51
|
|
|
48
|
|
|
Europe/Africa/CIS
|
|
107
|
|
44
|
|
|
88
|
|
|
Middle East/Asia
|
|
124
|
|
52
|
|
|
80
|
|
|
Total
|
|
603
|
|
1,087
|
|
|
639
|
|
|
Drilling and Evaluation:
|
|
|
|
|
|
|
North America
|
|
150
|
|
178
|
|
|
174
|
|
|
Latin America
|
|
136
|
|
119
|
|
|
106
|
|
|
Europe/Africa/CIS
|
|
79
|
|
65
|
|
|
63
|
|
|
Middle East/Asia
|
|
119
|
|
118
|
|
|
87
|
|
|
Total
|
|
484
|
|
480
|
|
|
430
|
|
|
Adjusted total operating income by region:
|
|
|
|
|
|
|
North America
|
|
465
|
|
1,118
|
|
|
597
|
|
|
Latin America
|
|
193
|
|
170
|
|
|
154
|
|
|
Europe/Africa/CIS
|
|
186
|
|
109
|
|
|
151
|
|
|
Middle East/Asia
|
|
243
|
|
170
|
|
|
167
|
|
|
Corporate and other
|
|
(106
|
)
|
(113
|
)
|
|
(87
|
)
|
|
Adjusted total operating income
|
|
$
|
981
|
|
$
|
1,454
|
|
|
$
|
982
|
|
|
(a)
|
|
Management believes that operating income adjusted for the fourth
quarter of 2011 environmental-related charge and the third quarter
of 2012 acquisition-related charge and settlement of a patent
infringement case is useful to investors to assess and understand
operating performance, especially when comparing those results with
previous and subsequent periods or forecasting performance for
future periods, primarily because management views these items to be
outside of the company’s normal operating results. Management
analyzes operating income without the impact of these items as an
indicator of ongoing operating performance, to identify underlying
trends in the business, and to establish operational goals,
including segment and region operational goals. The adjustments
remove the effects of these expenses.
|
|
(b)
|
|
Adjusted operating income for each segment and region is calculated
as: “Operating income” less “Items Included in Operating Income.”
|
|
|
|
|
|
FOOTNOTE TABLE 4
HALLIBURTON COMPANY
Reconciliation
of As Reported Results to Adjusted Results
(Millions of
dollars)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
September 30, 2012
|
|
|
|
|
|
As reported income from continuing operations attributable to company
|
|
$
|
608
|
|
|
Acquisition-related charge, net of tax (a)
|
|
30
|
|
|
Patent infringement case settlement, net of tax (a)
|
|
(13
|
)
|
|
Adjusted income from continuing operations attributable to
company (a)
|
|
$
|
625
|
|
|
|
|
|
|
|
As reported diluted weighted average common shares outstanding
|
|
930
|
|
|
|
|
|
|
|
As reported income from continuing operations per diluted share (b)
|
|
$
|
0.65
|
|
|
Adjusted income from continuing operations per diluted share (b)
|
|
$
|
0.67
|
|
|
(a)
|
|
Management believes that income from continuing operations
attributable to company adjusted for the acquisition-related charge
and patent infringement case settlement is useful to investors to
assess and understand operating performance, especially when
comparing those results with previous and subsequent periods or
forecasting performance for future periods, primarily because
management views the excluded items to be outside of the company's
normal operating results. Management analyzes income from continuing
operations attributable to company without the impact of these items
as an indicator of performance, to identify underlying trends in the
business, and to establish operational goals. The adjustments remove
the effects of these expenses. Adjusted income from continuing
operations attributable to company is calculated as: “As reported
income from continuing operations attributable to company” plus
“Acquisition-related charge, net of tax” plus “Patent infringement
case settlement, net of tax” for the quarter ended September 30,
2012.
|
|
(b)
|
|
As reported income from continuing operations per diluted share is
calculated as: “As reported income from continuing operations
attributable to company” divided by “As reported diluted weighted
average common shares outstanding.” Adjusted income from continuing
operations per diluted share is calculated as: “Adjusted income from
continuing operations attributable to company” divided by “As
reported diluted weighted average common shares outstanding.”
|
|
|
|
|
Conference Call Details
Halliburton (NYSE:HAL) will host a conference call on Friday,
January 25, 2013, to discuss the fourth quarter 2012 financial results.
The call will begin at 8:00 AM Central Time (9:00 AM Eastern Time).
Halliburton’s fourth quarter press release will be posted on the
Halliburton Web site at www.halliburton.com.
Please visit the Web site to listen to the call live via webcast. In
addition, you may participate in the call by telephone at (703)
639-1306. A passcode is not required. Attendees should log-in to the
webcast or dial-in approximately 15 minutes prior to the call’s start
time.
A replay of the conference call will be available on Halliburton’s Web
site for seven days following the call. Also, a replay may be accessed
by telephone at (888) 266-2081, passcode 1596817.
Source: Halliburton
Halliburton
Kelly Youngblood, 281-871-2688
Investor
Relations
investors@halliburton.com
or
Beverly
Blohm Stafford, 281-871-2601
Corporate Affairs
PR@halliburton.com
|
Contact Us
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