Halliburton Announces Fourth Quarter and Full Year Earnings
Income from continuing operations in the fourth quarter of 2008 was
Fourth quarter of 2008 operating income was impacted by a
Net income for the fourth quarter of 2008 was
Halliburton's revenue was
Loss from discontinued operations in 2008 was
Commenting on 2008 results, Dave Lesar, chairman, president, and chief
executive officer said, "While current market conditions are difficult,
this should not overshadow our excellent performance in the fourth
quarter. I believe our business strategy of protecting our strong
"We completed 2008 with the highest level of annual oilfield revenue and
operating income achieved during the 90 year history of our company. Our
international business was a major contributor to our performance in
2008 as we expanded into underserved locations.
"In the fourth quarter, our
"Our Eastern Hemisphere growth rate slowed in the fourth quarter
particularly due to weakness in the North Sea and flat activity in the
"Halliburton has successfully weathered multiple industry downcycles, and it is clear 2009 will be a challenging year for both the company and the industry. We are confident we have the right people, technology, and financial strength to address the task of successfully operating in a contracting market and position us to benefit from the market's eventual recovery."
2008 Fourth Quarter Results
Completion and Production (C&P) operating income in the fourth quarter
of 2008 was
Drilling and Evaluation (D&E) operating income in the fourth quarter of
2008 was
Approximately
Technology and Significant Achievements
Halliburton made a number of advances in technology and growth.
-- Landmark released SeisSpace(TM) R5000 software. The release addresses
the needs of both operators and contractors by delivering the time and
depth domain processing tools required to process and quality check
large volumes of seismic data and provide superior seismic images to
interpretation teams. The release also provides an open processing
platform to support proprietary technology and specialty processing
services.
-- Halliburton entered into an agreement with Derrick Equipment Company to
expand Baroid Fluid Services' offering of solids control equipment and
services. Derrick Equipment will serve as the exclusive supplier of a
full range of solids control products, including shale shakers,
centrifuges, and screens to Baroid.
-- Halliburton announced a new, three-year contract with TOTAL E&P
Indonesie to provide specialized cased-hole services in support of the
company's work in Indonesia's Mahakam Delta. Halliburton is providing
TOTAL with a full suite of cased-hole technologies and services for use
in the delta's laminated reservoirs.
Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With more than 55,000 employees in approximately 70 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 Web site 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: consequences of audits and
investigations by domestic and foreign government agencies and
legislative bodies and related publicity, and of the prospective
settlements of the DOJ and SEC FCPA investigations; whether the
prospective settlements of the DOJ and SEC FCPA investigations will
become effective; potential adverse proceedings by such agencies;
protection of intellectual property rights; compliance with
environmental laws; changes in government regulations and regulatory
requirements, particularly those related to radioactive sources,
explosives, and chemicals; compliance with laws related to income taxes
and assumptions regarding the generation of future taxable income;
unsettled political conditions, war, and the effects of terrorism,
foreign operations, and foreign exchange rates and controls;
weather-related issues including the effects of hurricanes and tropical
storms; changes in capital spending by customers; execution of
long-term, fixed-price contracts; changes in the demand for or price of
oil and/or natural gas; impairment of oil and gas properties; structural
changes in the oil and natural gas industry; increased competition for
employees; availability of raw materials; and integration of acquired
businesses and operations of joint ventures. Halliburton's Form 10-K for
the year ended
HALLIBURTON COMPANY Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited) Three Months Ended December 31 September 30 2008 2007 2008 Revenue: Completion and Production $ 2,643 $ 2,289 $ 2,664 Drilling and Evaluation 2,267 1,890 2,189 Total revenue $ 4,910 $ 4,179 $ 4,853 Operating income: Completion and Production $ 659 $ 571 $ 660 Drilling and Evaluation 529 403 472 Corporate and other (25 ) (67 ) (81 ) Total operating income 1,163 907 1,051 Interest expense (48 ) (36 ) (35 ) Interest income 4 24 6 Other, net (d) (26 ) (2 ) (697 )(c) Income from continuing operations before income taxes and minority 1,093 893 325 interest Provision for income taxes (342 ) (212 )(b) (343 ) Minority interest in net income of 25 (7 ) (3 ) subsidiaries Income (loss) from continuing 776 674 (21 ) operations Income (loss) from discontinued (308 )(a) 16 - operations, net Net income (loss) $ 468 $ 690 $ (21 ) Basic income (loss) per share: Income (loss) from continuing $ 0.87 $ 0.77 $ (0.02 ) operations Income (loss) from discontinued (0.34 ) 0.02 - operations, net Net income (loss) $ 0.53 $ 0.79 $ (0.02 ) Diluted income (loss) per share: Income (loss) from continuing $ 0.87 $ 0.74 $ (0.02 ) operations Income (loss) from discontinued (0.34 )(a) 0.01 - operations, net Net income (loss) $ 0.53 $ 0.75 $ (0.02 ) Basic weighted average common shares 888 875 876 outstanding Diluted weighted average common shares 890 916 876 outstanding
Loss from discontinued operations, net in the fourth quarter of 2008
(a) included a $303 million , or $0.34 per diluted share, charge related to the
prospective settlements of the DOJ and SEC FCPA investigations.
Provision for income taxes included a $55 million , or $0.06 per diluted
(b) share, favorable income tax impact in the fourth quarter of 2007 from the
ability to recognize the benefit of foreign tax credits previously thought
not to be fully utilizable.
Other, net in the third quarter of 2008 included a $693 million , or $0.79
(c) per diluted share, non-tax deductible loss on the portion of the premium on
convertible debt settled in cash.
(d) Includes, among other things, foreign currency gains and losses.
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) Year Ended December 31 2008 2007 Revenue: Completion and Production $ 9,935 $ 8,386 Drilling and Evaluation 8,344 6,878 Total revenue $ 18,279 $ 15,264 Operating income: Completion and Production $ 2,409 $ 2,199 Drilling and Evaluation 1,865 1,485 Corporate and other (264 ) (186 ) Total operating income 4,010 3,498 Interest expense (160 ) (154 ) Interest income 39 124 Other, net (e) (726 )(a) (8 ) Income from continuing operations before income 3,163 3,460 taxes and minority interest Provision for income taxes (1,211 ) (907 )(c) Minority interest in net income of subsidiaries 9 (29 ) Income from continuing operations 1,961 2,524 Income (loss) from discontinued operations, net (423 )(b) 975 (d) Net income $ 1,538 $ 3,499 Basic income (loss) per share: Income from continuing operations $ 2.24 $ 2.76 Income (loss) from discontinued operations, net (0.49 ) 1.07 Net income $ 1.75 $ 3.83 Diluted income (loss) per share: Income from continuing operations $ 2.17 $ 2.66 Income (loss) from discontinued operations, net (0.47 )(b) 1.02 (d) Net income $ 1.70 $ 3.68 Basic weighted average common shares outstanding 877 913 Diluted weighted average common shares outstanding 904 950
Other, net in 2008 included a $693 million , or $0.77 per diluted share,
(a) non-tax deductible loss on the portion of the premium on convertible debt
settled in cash.
Loss from discontinued operations, net, in 2008, included $420 million in
(b) charges, net of tax, or $0.46 per diluted share, related to adjustments of
the indemnities and guarantees provided to KBR, Inc. upon separation.
Provision for income taxes in 2007 included a $188 million , or $0.20 per
(c) diluted share, favorable income tax impact from the ability to recognize
the benefit of foreign tax credits previously thought not to be fully
utilizable.
(d) Income from discontinued operations, net, in 2007 included a $933 million ,
or $0.98 per diluted share, net gain on the separation of KBR, Inc.
(e) Includes, among other things, foreign currency gains and losses.
See Footnote Table 1 for a list of significant items included in operating income.
HALLIBURTON COMPANY Condensed Consolidated Balance Sheets (Millions of dollars) (Unaudited) December 31 2008 2007 Assets Current assets: Cash and investments in marketable securities $ 1,124 $ 2,235 Receivables, net 3,795 3,093 Inventories, net 1,828 1,459 Other current assets 664 786 Total current assets 7,411 7,573 Property, plant, and equipment, net 4,782 3,630 Goodwill 1,072 790 Other assets 1,120 1,142 Total assets $ 14,385 $ 13,135 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 898 $ 768 Accrued employee compensation and benefits 643 575 Other current liabilities 1,240 1,068 Total current liabilities 2,781 2,411 Long-term debt 2,586 2,627 Other liabilities 1,274 1,137 Total liabilities 6,641 6,175 Minority interest in consolidated subsidiaries 19 94 Shareholders' equity 7,725 6,866 Total liabilities and shareholders' equity $ 14,385 $ 13,135
HALLIBURTON COMPANY Selected Cash Flow Information (Millions of dollars) (Unaudited) Three Months Ended Year Ended December 31 December 31 2008 2007 2008 2007 Capital expenditures $ 519 $ 519 $ 1,824 $ 1,583 Depreciation, depletion, and amortization $ 203 $ 166 $ 738 $ 583
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: 2008 2007 2008 Completion and Production: North America $ 1,447 $ 1,206 $ 1,462 Latin America 283 205 300 Europe/Africa/CIS 533 508 554 Middle East/Asia 380 370 348 Total 2,643 2,289 2,664 Drilling and Evaluation: North America 795 662 784 Latin America 389 285 347 Europe/Africa/CIS 607 551 578 Middle East/Asia 476 392 480 Total 2,267 1,890 2,189 Total revenue by region: North America 2,242 1,868 2,246 Latin America 672 490 647 Europe/Africa/CIS 1,140 1,059 1,132 Middle East/Asia 856 762 828 Operating income by geographic region (excluding Corporate and other): Completion and Production: North America $ 377 $ 335 $ 398 Latin America 60 48 73 Europe/Africa/CIS 124 90 106 Middle East/Asia 98 98 83 Total 659 571 660 Drilling and Evaluation: North America 162 162 171 Latin America 92 50 61 Europe/Africa/CIS 136 117 99 Middle East/Asia 139 74 141 Total 529 403 472 Total operating income by region: North America 539 497 569 Latin America 152 98 134 Europe/Africa/CIS 260 207 205 Middle East/Asia 237 172 224
See Footnote Table 1 and Footnote Table 2 for a list of significant items included in operating income.
HALLIBURTON COMPANY Revenue and Operating Income Comparison By Segment and Geographic Region (Millions of dollars) (Unaudited) Year Ended December 31 Revenue by geographic region: 2008 2007 Completion and Production: North America $ 5,348 $ 4,655 Latin America 1,084 756 Europe/Africa/CIS 2,065 1,767 Middle East/Asia 1,438 1,208 Total 9,935 8,386 Drilling and Evaluation: North America 2,992 2,478 Latin America 1,341 1,042 Europe/Africa/CIS 2,281 1,933 Middle East/Asia 1,730 1,425 Total 8,344 6,878 Total revenue by region: North America 8,340 7,133 Latin America 2,425 1,798 Europe/Africa/CIS 4,346 3,700 Middle East/Asia 3,168 2,633 Operating income by geographic region (excluding Corporate and other): Completion and Production: North America $ 1,404 $ 1,404 Latin America 260 170 Europe/Africa/CIS 409 330 Middle East/Asia 336 295 Total 2,409 2,199 Drilling and Evaluation: North America 701 552 Latin America 261 179 Europe/Africa/CIS 448 414 Middle East/Asia 455 340 Total 1,865 1,485 Total operating income by region: North America 2,105 1,956 Latin America 521 349 Europe/Africa/CIS 857 744 Middle East/Asia 791 635
See Footnote Table 1 and Footnote Table 2 for a list of significant items included in operating income.
FOOTNOTE TABLE 1HALLIBURTON COMPANY Items Included in Operating Income (Millions of dollars except per share data) (Unaudited) Three Months Three Months Ended Three Months Ended Ended December 31, 2008 December 31, 2007 September 30, 2008 Operating After Operating After Tax Operating After Tax Tax Income per Income per Share Income per Share Share Drilling and Evaluation: Impairment of oil $ - $ - $ (34 ) $ (0.02 ) $ - $ - and gas property Corporate and other: Acquisition-related - - - - (22 ) (0.02 ) adjustment Patent settlement 35 0.02 - - - -
Year Ended Year Ended
December 31, 2008 December 31, 2007
Operating After Tax Operating After Tax
Income per Share Income per Share
Completion and Production:
Gain on sale of investment $ 35 $ 0.02 $ - $ -
Drilling and Evaluation:
Charges for environmental matters - - (24 ) (0.02 )
Impairment of oil and gas property (23 ) (0.02 ) (34 ) (0.02 )
Gain on sale of investments 25 0.02 - -
Corporate and other:
Charges for environmental matters - - (8 ) -
Gain on sale of investment - - 49 0.03
Patent settlements 5 (a) - - -
Acquisition-related adjustment (22 ) (0.02 ) - -
Patent settlements in 2008 included a $35 million gain in the fourth
(a) quarter of 2008 partially offset by a $30 million charge in the second
quarter of 2008.
FOOTNOTE TABLE 2HALLIBURTON COMPANY Items Included in Operating Income by Geographic Region (Millions of dollars except per share data) (Unaudited) Three Months Three Months Ended Three Months Ended Ended December 31, 2008 December 31, 2007 September 30, 2008 Operating After Operating After Tax Operating After Tax Tax Income per Income per Share Income per Share ShareMiddle East /Asia: Impairment of oil $ - $ - $ (34 ) $ (0.02 ) $ - $ - and gas property Corporate and other: Acquisition-related - - - - (22 ) (0.02 ) adjustment Patent settlement 35 0.02 - - - -
Year Ended Year Ended
December 31, 2008 December 31, 2007
Operating After Tax Operating After Tax
Income per Share Income per Share
North America :
Charges for environmental matters $ - $ - $ (24 ) $ (0.02 )
Gain on sale of investments 60 0.04 - -
Middle East /Asia:
Impairment of oil and gas property (23 ) (0.02 ) (34 ) (0.02 )
Corporate and other:
Charges for environmental matters - - (8 ) -
Gain on sale of investment - - 49 0.03
Patent settlements 5 (a) - - -
Acquisition-related adjustment (22 ) (0.02 ) - -
Patent settlements in 2008 included a $35 million gain in the fourth
(a) quarter of 2008 partially offset by a $30 million charge in the second
quarter of 2008.
CONTACT: Halliburton,
Vice President, Investor Relations
or
Director, Corporate Affairs
Source: Halliburton