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Halliburton Announces Fourth Quarter Results

$0.34 Per Diluted Share Income From Continuing Operations

HOUSTON, Jan. 29 /PRNewswire-FirstCall/ -- Halliburton (NYSE: HAL) announced today that fourth quarter 2003 income from continuing operations was $146 million, or $0.34 per diluted share. The net loss for the quarter was $947 million, or $2.17 per diluted share, and included a net loss from discontinued operations for the proposed asbestos and silica settlement of $1.1 billion, or $2.51 per diluted share.

Revenues were $5.5 billion in the fourth quarter 2003, up 63% from the fourth quarter 2002. 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).

Operating income was $303 million in the fourth quarter 2003 compared to a $21 million loss in the fourth quarter 2002. Fourth quarter 2002 results included a $234 million loss related to the proposed asbestos and silica settlement and $29 million in restructuring charges.

"I am pleased with the overall improvements in our financial performance as both KBR and the Energy Services Group ("ESG") delivered solid operating results for the 2003 fourth quarter," said Dave Lesar, chairman, president and chief executive officer of Halliburton. "The fourth quarter was also strategically significant as we took a major step toward resolving our asbestos and silica liability, and we continued to perform well for our customers in Iraq. In ESG, we benefited from increased oilfield activity in the United States and Canada, and from improved competitive position in international markets such as Norway, Mexico, the Middle East, and Algeria. Looking ahead to 2004, customer spending is expected to accelerate over the course of the year, although our first quarter results are expected to be affected by normal seasonal softness."

Proposed Asbestos and Silica Settlement

In December 2003, as part of the previously announced plan to resolve its asbestos and silica liabilities through a prepackaged bankruptcy, the company's DII Industries, Kellogg Brown & Root, Inc. and other affected subsidiaries filed Chapter 11 proceedings in bankruptcy court in Pittsburgh, Pennsylvania. As a result of the Chapter 11 proceedings, the company adjusted its asbestos and silica liability to reflect the full amount of the proposed settlement, which together with related expenses resulted in a before and after-tax charge of $1.1 billion in the fourth quarter 2003. The tax effect on this charge was minimal, as a valuation allowance was established for the net operating loss carryforward created by the charge.

2003 Fourth Quarter Segment Results

Energy Services Group

ESG posted fourth quarter 2003 revenues of $1.8 billion, an $85 million increase over the fourth quarter 2002, and operating income of $241 million, up $42 million for the same period in the prior year.

Drilling and Formation Evaluation revenues for the fourth quarter 2003 were $417 million, essentially flat from the fourth quarter 2002. The first quarter 2003 sale of Mono Pumps negatively impacted revenue comparisons between the fourth quarter of 2003 and the fourth quarter of 2002 by $20 million. Latin America revenues increased $9 million due to new contracts for logging services in Mexico and the introduction of the company's rotary steerables in Brazil. Revenues in the North America and Middle East/Asia regions increased modestly. However, the Mono Pumps sale, a 6% decrease in rig count, and the completion of certain logging contracts in West Africa contributed to a $13 million decline in revenues for the Europe/Africa region. Operating income of $17 million represented a 62% decrease compared to the fourth quarter 2002. This primarily reflects a decline in offshore activity by key customers. Also, the fourth quarter of 2003 included $8 million of expenses related to the consolidation of two drill bit manufacturing facilities in the Woodlands, Texas announced last quarter and severance cost for the drill bit and directional drilling businesses in the United States and Western Europe, consistent with reduced activity in these markets.

Fluids revenues for the fourth quarter 2003 were $531 million, a 15% increase over the fourth quarter 2002. The increase was driven by a $22 million increase in United States cementing services due to higher land rig count, a $15 million increase in drilling fluids revenues on new contract awards in Mexico, and an $11 million increase in drilling fluids revenues attributed to the start-up of a majority-owned drilling fluids joint venture in Algeria. Revenues were up in each geographic region. Fluids operating income for the fourth quarter 2003 was $73 million, a $25 million increase from the fourth quarter of 2002. The majority of the increase in operating income was attributable to the increase in revenues, as well as Nigeria charges incurred in the fourth quarter of 2002 which adversely impacted operating income in that period.

Production Optimization revenues for the fourth quarter 2003 were $714 million, a 9% increase over the fourth quarter 2002. North America revenues improved 14% over fourth quarter 2002 on increased rig activity. Internationally, revenues were up in the Latin America and Middle East/Asia regions, while down 5% in the Europe/Africa region. The sale of Halliburton Measurement Systems in the second quarter 2003 negatively impacted revenue comparisons by $9 million. Production Optimization operating income for the fourth quarter 2003 was $116 million, a 26% increase over the fourth quarter 2002. Improved international activity levels, as well as a more favorable sales mix in completion products and sand control services, drove the majority of the increase in operating income. The improvement in operating income from production enhancement services and completion products and services more than offset the $11 million in equity losses from the Subsea 7 joint venture.

Landmark and Other Energy Services revenues for the fourth quarter 2003 were $137 million, a decrease of $48 million from the fourth quarter 2002. The reduction of revenues was attributable to the sale of Wellstream in the first quarter 2003 and lower customer information technology spending. Landmark and Other Energy Services fourth quarter 2003 operating income was $35 million, compared to $14 million in the fourth quarter 2002. Fourth quarter 2002 segment operating income included $17 million in restructuring charges. Although Landmark Graphics revenues and operating income were down 7% and 4%, respectively, as compared to the fourth quarter 2002, for the year 2003, Landmark Graphics recorded their highest level of operating income, an 18% improvement over 2002 and the highest operating margins since the company acquired it.

KBR

KBR revenues for the fourth quarter 2003 were $3.7 billion, more than double its revenues in the fourth quarter 2002. The improvement was mostly due to increased government related activities in the Middle East, and to a lesser extent, revenues from oil and gas projects in Algeria, a hydrocarbon plant in Belgium, and increased activities in the Devonport Management Limited (DML) shipyard. Partially offsetting the increases were lower revenues from the Barracuda-Caratinga project in Brazil, an offshore project in Indonesia, an oil project in Western Africa nearing completion, and lower activities on operations and maintenance projects. KBR operating income for the fourth quarter 2003 was $82 million, compared to a $189 million loss in the fourth quarter 2002. Included in the fourth quarter 2002 loss was a $234 million charge related to the proposed asbestos and silica settlement. Fourth quarter 2003 operating results included increased operating income on government services operations in the Middle East and an $18 million benefit from better than expected insurance loss experience.

Total company revenue and operating income from Iraq-related work in the fourth quarter 2003 were $2.2 billion and $44 million, respectively. Iraq- related work contributed $0.06 per diluted share of earnings after tax.

Backlog

KBR backlog at December 31, 2003 was $9.7 billion, down $100 million from September 30, 2003. Approximately 26% of the backlog was for fixed fee contracts, compared to 31% at September 30, 2003. Of the fixed fee contract backlog, 40% of the total related to onshore contracts, 29% related to government services contracts and 18% related to offshore contracts. Firm orders were $8.6 billion at the end of the quarter. The remainder of the backlog primarily related to government awards not yet funded. In addition, subsequent to year-end, KBR was awarded two new contracts: CENTCOM, with a contract value up to $1.5 billion, and RIO continuation, with a contract value up to $1.2 billion, which were not included in the year-end backlog.

Technology and Significant Achievements

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

     KBR new contract awards:

     --   KBR was awarded the contract to continue its operations for the
          Restore Iraqi Oil program in the southern section of Iraq by the
          United States Army Corps of Engineers.  The contract has a value of
          up to $1.2 billion over two years, with three one-year optional
          extensions.  The contract will cover a full range of services,
          including extinguishing oil well fires; environmental assessments
          and cleanup at oil sites; oil infrastructure condition assessments;
          engineering design and construction necessary to restore the
          infrastructure to a safe operating condition; oilfield, pipeline
          and refinery maintenance; procurement and importation of fuel
          products; distribution of fuel products within Iraq; technical
          assistance in marketing and sales/export; and technical assistance
          and consulting services to the Iraqi oil companies.

     --   KBR was awarded a contract for up to $1.5 billion over five years
          by the United States Army Corps of Engineers to support United
          States military operations, other federal agencies and friendly
          governments anywhere in the United States Central Command's area of
          operations, a 25-country region extending from the Horn of Africa
          to Central Asia.

     --   KBR was awarded a five-year integrated support contract by
          ChevronTexaco to supply operations, maintenance and engineering
          support on the Alba, Captain and Erskine production facilities in
          the North Sea.


     Energy Services Group new technologies and contracts:

     --   Halliburton was awarded a five-year contract, valued at
          $25 million, from the Department of Petroleum Resources in Nigeria.
          The contract calls for the design, development and operation of a
          National Data Repository using Landmark Graphics' PetroBank
          technology, among the most advanced multi-client data management
          systems in the E&P industry.  This represents the seventh National
          Data Repository, with others in Pakistan, Kazakhstan, UK, Brazil,
          Norway and Indonesia.

     --   Halliburton added four technologies to its suite of production
          optimization services: Reservoir Performance Monitoring (RPM);
          DepthStar(TM) tubing retrievable safety valve; WaterWeb(SM)
          technology; and SilverStim(TM) LT fracturing fluid system.  RPM
          provides high-reliability, permanent downhole monitoring solutions
          focused on optimizing production, maximizing reserves and
          maintaining completions integrity.  The DepthStar valve is a
          revolutionary concept in the realm of surface controlled subsurface
          safety valves which function completely independent of well
          pressure.  WaterWeb service is based on relative permeability
          modifier technology and is the result of an ongoing research and
          development program to help operators control the production of
          unwanted water.  SilverStim LT fracturing service results in a step
          change in how fracturing fluids are used and applied in the field.

     --   Halliburton recently performed a record-breaking deepwater well
          test operation for Statoil at the Ellida structure in the Norwegian
          Sea.  The test, performed from the dynamically positioned drill
          ship, West Navigator, at a water depth of more than 1,200 meters,
          is the first well test performed at such a water depth off the
          Norwegian coast.

     --   Halliburton successfully implemented a customized, Linux-based data
          and applications hosting system for Unocal's Deepwater Group in
          Jakarta, Indonesia.  Landmark Graphics implemented the system in
          July 2003 and will provide management, maintenance and on-site
          application support over a three-year period.

     --   Halliburton developed a high-performance alternative to synthetic-
          based drilling fluids with its new PerformaDril(TM) water-based
          fluid system.  The PerformaDril water-based system was used to
          drill highly reactive smectite and mixed layer clays on a North Sea
          well in the Kristin field.  Where zero discharge regulations apply
          to the use of synthetic-based fluids, the excellent inhibition and
          drilling performance demonstrated by the system provide another
          option for achieving wellbore stability.

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, the 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 capital 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 for the year ended December 31, 2002, as amended by Form 10-K/A filed on January 15, 2004, Form 10-Q for the quarter ended September 30, 2003 and Forms 8-K filed on October 28, 2003 and January 23, 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
                                                  December 31       Sept. 30
                                                2003        2002       2003
    Revenues
    Drilling and Formation Evaluation          $  417      $  413     $  433
    Fluids                                        531         463        510
    Production Optimization                       714         653        730
    Landmark and Other Energy Services            137         185        132
      Total Energy Services Group               1,799       1,714      1,805
    Engineering and Construction Group          3,665       1,634      2,343
      Total revenues                           $5,464      $3,348     $4,148
    Operating income (loss)
    Drilling and Formation Evaluation          $   17      $   45     $   45
    Fluids                                         73          48         55
    Production Optimization                       116          92        122
    Landmark and Other Energy Services             35          14        (52)
      Total Energy Services Group                 241         199        170
    Engineering and Construction Group             82        (189)        49
    General corporate                             (20)        (31)       (15)
      Total operating income (loss)            $  303      $  (21)    $  204
    Interest expense                              (54)        (22)       (33)
    Interest income                                 8           8          7
    Foreign currency, net                           4         (13)       (17)
    Other nonoperating, net                        (1)        (12)       ---
    Income (loss) from continuing operations
     before income taxes and minority interest    260         (60)       161
    Provision for income taxes                    (92)        (49)       (63)
    Minority interest in net income
     of subsidiaries                              (22)        (23)        (6)
    Income (loss) from continuing operations      146        (132)        92
    Loss from discontinued operations, net     (1,093)       (484)       (34)
    Net income (loss)                          $ (947)     $ (616)    $   58
    Basic income (loss) per share:
    Income (loss) from continuing operations   $ 0.34      $(0.30)    $ 0.21
    Loss from discontinued operations, net      (2.52)      (1.12)     (0.08)
    Net income (loss)                          $(2.18)     $(1.42)    $ 0.13
    Diluted income (loss) per share:
    Income (loss) from continuing operations   $ 0.34      $(0.30)    $ 0.21
    Loss from discontinued operations, net      (2.51)      (1.12)     (0.08)
    Net income (loss)                          $(2.17)     $(1.42)    $ 0.13
    Basic weighted average common
     shares outstanding                           435         433        435
    Diluted weighted average common
     shares outstanding                           438         433        437

     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)

                                                   Twelve Months Ended
                                                       December 31
                                                    2003          2002
    Revenues
    Drilling and Formation Evaluation              $1,643        $1,633
    Fluids                                          2,039         1,815
    Production Optimization                         2,766         2,554
    Landmark and Other Energy Services                547           834
      Total Energy Services Group                   6,995         6,836
    Engineering and Construction Group              9,276         5,736
      Total revenues                              $16,271       $12,572
    Operating income (loss)
    Drilling and Formation Evaluation                $177          $160
    Fluids                                            251           202
    Production Optimization                           421           384
    Landmark and Other Energy Services                (23)         (108)
      Total Energy Services Group                     826           638
    Engineering and Construction Group                (36)         (685)
    General corporate                                 (70)          (65)
      Total operating income (loss)                  $720         $(112)
    Interest expense                                 (139)         (113)
    Interest income                                    30            32
    Foreign currency, net                             ---           (25)
    Other nonoperating, net                             1           (10)
    Income (loss) from continuing operations
     before income taxes, minority interest and
     change in accounting principle                   612          (228)
    Provision for income taxes                       (234)          (80)
    Minority interest in net income of subsidiaries   (39)          (38)
    Income (loss) from continuing operations
     before change in accounting principle            339          (346)
    Loss from discontinued operations, net         (1,151)         (652)
    Cumulative effect of change in accounting
      principle, net                                   (8)          ---
    Net loss                                        $(820)        $(998)
    Basic income (loss) per share:
    Income (loss) from continuing operations
     before change in accounting principle          $0.78        $(0.80)
    Loss from discontinued operations, net          (2.65)        (1.51)
    Change in accounting principle, net             (0.02)          ---
    Net loss                                       $(1.89)       $(2.31)
    Diluted income (loss) per share:
    Income (loss) from continuing operations
     before change in accounting principle          $0.78        $(0.80)
    Loss from discontinued operations, net          (2.64)        (1.51)
    Change in accounting principle, net             (0.02)          ---
    Net loss                                       $(1.88)       $(2.31)
    Basic weighted average common shares
     outstanding                                      434           432
    Diluted weighted average common shares
     outstanding                                      437           432

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


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

                                            Dec. 31      Dec. 31     Sept. 30
                                             2003         2002         2003
               Assets

    Current assets:
    Cash and equivalents                    $1,815       $1,107       $1,222
    Total receivables, net                   4,765        3,257        4,000
    Inventories                                695          734          731
    Other current assets                       644          462          666
    Total current assets                     7,919        5,560        6,619

    Property, plant and equipment, net       2,526        2,629        2,504
    Insurance for asbestos and silica
     related liabilities                     2,045        2,059        2,061
    Other assets                             2,981        2,596        2,592
    Total assets                           $15,471      $12,844      $13,776

       Liabilities and Shareholders' Equity

    Current liabilities:
    Short-term notes payable                   $18          $49          $23
    Current maturities of long-term debt        22          295           21
    Accounts payable                         1,776        1,077          979
    Current asbestos and silica
     related liabilities                     2,463          ---          ---
    Other current liabilities                2,213        1,851        2,071
    Total current liabilities                6,492        3,272        3,094

    Long-term debt                           3,415        1,181        2,368
    Asbestos and silica related liabilities  1,637        3,425        3,387
    Other liabilities                        1,280        1,337        1,260
    Minority interest in consolidated
     subsidiaries                              100           71           90
    Total liabilities                       12,924        9,286       10,199
    Total shareholders' equity               2,547        3,558        3,577
    Total liabilities and shareholders'
     equity                                $15,471      $12,844      $13,776

     Note:  These Condensed Consolidated Balance Sheets do not include a
            breakout of prepetition liabilities.
            This information will be provided in our 2003 annual report on
            Form 10-K.


                                     TABLE 1

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

                                            Three Months    Three Months
                                               Ended           Ended
                                            December 31     September 30
                                          2003       2002       2003
    Revenues
    North America                       $  787     $  732     $  791
    Latin America                          255        218        244
    Europe / Africa                        350        381        356
    Middle East / Asia                     407        383        414
        Total revenues                  $1,799     $1,714     $1,805

    Operating Income
    North America                       $  100     $   75     $   31
    Latin America                           48         24         51
    Europe / Africa                         36         39         28
    Middle East / Asia                      57         61         60
        Total operating income          $  241     $  199     $  170


                                              Twelve Months Ended
                                                   December 31
                                               2003          2002
    Revenues
    North America                             $3,085        $3,031
    Latin America                                907           846
    Europe / Africa                            1,442         1,578
    Middle East / Asia                         1,561         1,381
        Total revenues                        $6,995        $6,836

    Operating Income
    North America                             $  306        $  199
    Latin America                                165           108
    Europe / Africa                              147           178
    Middle East / Asia                           208           153
        Total operating income                $  826        $  638

     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     Three Months    Three Months
                                  Ended            Ended            Ended
                               December 31      December 31     September 30
                                  2003             2002             2003
                                     After            After            After
                           Operating  Tax  Operating   Tax  Operating   Tax
                            Income per Share Income per Share Income per Share
    Landmark and Other
      Energy Services:
      Anglo-Dutch lawsuit    $---    $---    $---     $---    $(77)   $(0.11)
      Restructuring charge    ---     ---     (17)   (0.02)    ---       ---
    Engineering and
      Construction Group:
      Asbestos and silica
        liability              (2)    ---    (234)   (0.49)     (1)      ---
      Restructuring charge    ---     ---      (2)     ---     ---       ---
      Barracuda-Caratinga
        project loss          (10)  (0.01)      2      ---     ---       ---
    General corporate:
      Restructuring charge    ---     ---     (10)   (0.01)    ---       ---
      Insurance company
        demutualization       ---     ---       1      ---     ---       ---


                                          Twelve Months        Twelve Months
                                              Ended               Ended
                                           December 31          December 31
                                               2003                2002
                                                   After               After
                                        Operating   Tax     Operating   Tax
                                         Income  per Share   Income  per Share
    Drilling and Formation Evaluation:
      Mono Pumps gain on sale             $36      $0.05      $---      $---
    Production Optimization:
      HMS gain on sale                     24       0.03       ---       ---
    Landmark and Other Energy Services:
      Anglo-Dutch lawsuit                 (77)     (0.11)      ---       ---
      Wellstream loss on sale             (15)     (0.03)      ---       ---
      EMC gain on sale                    ---        ---       108      0.15
      Patent infringement lawsuit
       accrual                            ---        ---       (98)    (0.14)
      Restructuring charge                ---        ---       (64)    (0.09)
      Bredero-Shaw impairment             ---        ---       (61)    (0.14)
      Bredero-Shaw loss on sale           ---        ---       (18)    (0.04)
    Engineering and Construction Group:
      Asbestos and silica liability        (5)     (0.01)     (564)    (1.11)
      Barracuda-Caratinga project loss   (238)     (0.33)     (117)    (0.17)
      Highlands receivable write-off      ---        ---       (80)    (0.11)
      Restructuring charge                ---        ---       (18)    (0.02)
    General corporate:
      Insurance company demutualization   ---        ---        29      0.04
      Restructuring charge                ---        ---       (25)    (0.04)


                                 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     Three Months    Three Months
                                  Ended            Ended           Ended
                               December 31      December 31     September 30
                                  2003             2002             2003
                                     After            After            After
                           Operating  Tax  Operating   Tax  Operating   Tax
                            Income per Share Income per Share Income per Share
    North America:
      Anglo-Dutch lawsuit    $---    $---    $---    $---    $(77)    $(0.11)
      Restructuring charge    ---     ---     (13)  (0.02)    ---        ---
    Europe / Africa:
      Restructuring charge    ---     ---      (4)  (0.01)    ---        ---


                                    Twelve Months Ended   Twelve Months Ended
                                        December 31          December 31
                                           2003                  2002
                                                 After                After
                                    Operating     Tax      Operating   Tax
                                     Income    per Share    Income  per Share
    North America:
      Anglo-Dutch lawsuit            $(77)      $(0.11)      $---      $---
      Mono Pumps gain on sale          24         0.03        ---       ---
      Wellstream loss on sale         (11)       (0.02)       ---       ---
      HMS gain on sale                 24         0.03        ---       ---
      Patent infringement lawsuit
       accrual                        ---          ---        (98)    (0.14)
      Restructuring charge            ---          ---        (51)    (0.07)
      Bredero-Shaw impairment         ---          ---        (61)    (0.14)
      Bredero-Shaw loss on sale       ---          ---        (18)    (0.04)
    Latin America:
      Restructuring charge            ---          ---         (3)      ---
    Europe / Africa:
      Mono Pumps gain on sale          12         0.02        ---       ---
      Wellstream loss on sale          (4)       (0.01)       ---       ---
      EMC gain on sale                ---          ---        108      0.15
      Restructuring charge            ---          ---         (7)    (0.01)
    Middle East / Asia:
      Restructuring charge            ---          ---         (3)      ---

SOURCE Halliburton