[January 22, 2019] |
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Halliburton Announces Fourth Quarter 2018 Results
Halliburton Company (NYSE: HAL) announced today income from continuing
operations of $664 million, or $0.76 per diluted share, for the fourth
quarter of 2018. This compares to income from continuing operations for
the third quarter of 2018 of $435 million, or $0.50 per diluted share.
Adjusted income from continuing operations for the fourth quarter of
2018, excluding a tax benefit related to a strategic change in the
company's corporate structure, was $358 million, or $0.41 per diluted
share. Halliburton's total revenue in the fourth quarter of 2018 was
$5.9 billion, a 4% decrease from revenue of $6.2 billion in the third
quarter of 2018. Operating income was $608 million during the fourth
quarter of 2018, a 15% decrease compared to operating income of $716
million in the third quarter of 2018.
Total revenue for the full year of 2018 was $24.0 billion, an increase
of $3.4 billion, or 16%, from 2017. Reported operating income for 2018
was $2.5 billion, compared to a reported operating income of $1.4
billion for 2017. Excluding special items, adjusted operating income for
2018 was $2.7 billion, a 35% improvement from adjusted operating income
of $2.0 billion for 2017.
"I am pleased with our overall financial results for the year and for
the fourth quarter. Our team optimized our performance in North America
as the market softened, and the recovery of our international business
continued," commented Jeff Miller, Chairman, President and CEO.
"The trajectory of this cycle has been far from smooth. As expected, in
North America, the demand for completion services decreased during the
fourth quarter, leading to lower pricing for hydraulic fracturing
services.
"Our international business continues to show signs of a steady
recovery, with revenue increasing 7% sequentially, underscoring the
versatility and global reach of our business portfolio.
"As North American oil production reaches historic highs, operators
focus on returns over growth, and the international recovery continues,
Halliburton is well prepared to thrive. We intend to dynamically respond
to the changing market environment, reduce capital spending, develop
differentiating technologies, and generate strong cash flow.
"Halliburton celebrates 100 years of service in 2019. As we enter our
next century, we will remain focused on collaborating with our customers
and engineering solutions to maximize their asset value, and on
delivering strong cash flow and industry-leading returns for our
shareholders," concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the fourth quarter of 2018 was $3.8
billion, a decrease of $338 million, or 8%, when compared to the third
quarter of 2018, while operating income was $496 million, a sequential
decrease of $117 million, or 19%. These declines were primarily driven
by lower activity and pricing for stimulation services in North America,
partially offset by stimulation activity increases in Argentina and
year-end completion tool sales internationally.
Drilling and Evaluation
Drilling and Evaluation revenue in the fourth quarter of 2018 was $2.1
billion, an increase of $102 million, or 5%, when compared to the third
quarter of 2018, while operating income was $185 million, a sequential
increase of $4 million, or 2%. These increases were primarily due to
year-end software sales, increased fluids activity in the Gulf of
Mexico, and improved project management activity in Latin America. These
improvements were partially offset by reduced drilling activity in the
Western Hemisphere.
Geographic Regions
North America
North America revenue in the fourth quarter of 2018 was $3.3 billion, an
11% decrease sequentially. This decrease was primarily driven by lower
activity and pricing in stimulation services, partially offset by higher
fluids activity in the Gulf of Mexico.
International
International revenue in the fourth quarter of 2018 was $2.6 billion, a
7% increase sequentially, resulting primarily from increased year-end
product and software sales in Middle East/Asia and Latin America,
partially offset by a seasonal decline in pipeline services in
Europe/Africa/CIS.
Latin America revenue in the fourth quarter of 2018 was $607 million, a
16% increase sequentially, resulting primarily from year-end software
and completion tool sales and higher stimulation activity across the
region, coupled with improved activity across multiple product service
lines in Mexico.
Europe/Africa/CIS revenue in the fourth quarter of 2018 was $746
million, relatively flat sequentially, primarily driven by a seasonal
decline in pipeline services across the region, coupled with decreased
activity across multiple product service lines in the North Sea. These
results were partially offset by year-end completion tool sales in Ghana
and Nigeria.
Middle East/Asia revenue in the fourth quarter of 2018 was $1.2 billion,
an 8% increase sequentially, largely resulting from year-end completion
tool sales in the Middle East, coupled with higher project management
activity throughout the region.
Corporate and Other Events
During the fourth quarter of 2018, Halliburton recognized the impact of
a strategic change in the company's corporate structure, which resulted
in a net tax benefit of $306 million, or $0.35 per diluted share.
During the fourth quarter of 2018, Halliburton repurchased $200 million
of common stock.
Selective Technology & Highlights
-
Halliburton won three World Oil Awards in 2018. Its Voice of the
Oilfield™ solution won the "Best Digital Transformation Award," while
its BaraOmni™ Hybrid Separation System and Global Rapid Intervention
Package (GRIP™) won "Best Health, Safety, Environment/Sustainable
Development Award" for both the onshore and offshore categories,
respectively. In addition, Halliburton was a finalist in five other
award categories.
-
Halliburton unveiled Cerebro™ in-bit sensor package, a new technology
that obtains performance data directly from the drill bit and analyzes
it to optimize cutter engagement, reduce uncertainty, and increase
drilling efficiency. This new service improves data measurement and
overall drilling performance.
-
Halliburton released the Illusion® Spire, the first fluid efficient
dissolvable frac plug. The Illusion Spire plug is designed with a
water saving element, so that operators can pump faster and reduce
completion time.
-
In December 2018, Halliburton acquired SmartFibres, an industry leader
in the development, design and manufacturing of downhole fiber optic
pressure gauges. The addition of SmartFibres strengthens Halliburton's
production enhancement portfolio, providing a distinct advantage
within the fiber optic space in both unconventional and mature fields.
-
Halliburton announced it has signed two contracts with Eni Iraq BV
(Eni) to provide integrated drilling services at Eni's Zubair Oil
Field in Southern Iraq. Under the contracts, Halliburton will mobilize
four to six rigs to drill development wells over the next two years.
About Halliburton
Founded in 1919, Halliburton celebrates its 100 years of service as one
of the world's largest providers of products and services to the energy
industry. With 60,000 employees, representing 140 nationalities in more
than 80 countries, the company helps its customers maximize value
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 throughout the
life of the asset. Visit the company's website at www.halliburton.com.
Connect with Halliburton on Facebook,
Twitter,
LinkedIn,
Instagram
and YouTube.
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: the continuation or suspension of our
stock repurchase program, the amount, the timing and the trading prices
of Halliburton common stock, and the availability and alternative uses
of cash; changes in the demand for or price of oil and/or natural gas;
potential catastrophic events related to our operations, and related
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 oil and natural gas exploration,
radioactive sources, explosives, chemicals, hydraulic fracturing
services, and climate-related initiatives; the impact of federal tax
reform, 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
sanctions, 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; structural changes and infrastructure issues in
the oil and natural gas industry; maintaining a highly skilled
workforce; availability and cost of raw materials; agreement with
respect to and completion of potential acquisitions and integration and
success of acquired businesses and operations of joint ventures.
Halliburton's Form 10-K for the year ended December 31, 2017, Form 10-Q
for the quarter ended September 30, 2018, 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.
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HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended
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|
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|
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December 31
|
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September 30
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2018
|
|
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2017
|
|
|
2018
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
3,832
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|
|
|
|
$
|
3,804
|
|
|
|
|
$
|
4,170
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Drilling and Evaluation
|
|
|
|
2,104
|
|
|
|
|
2,136
|
|
|
|
|
2,002
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|
Total revenue
|
|
|
|
$
|
5,936
|
|
|
|
|
$
|
5,940
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|
|
|
|
$
|
6,172
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|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
496
|
|
|
|
|
$
|
554
|
|
|
|
|
$
|
613
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|
Drilling and Evaluation
|
|
|
|
185
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|
|
|
|
293
|
|
|
|
|
181
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|
Corporate and other
|
|
|
|
(73
|
)
|
|
|
|
(79
|
)
|
|
|
|
(78
|
)
|
Impairments and other charges (a)
|
|
|
|
-
|
|
|
|
|
(385
|
)
|
|
|
|
-
|
|
Total operating income
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|
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|
$
|
608
|
|
|
|
|
$
|
383
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|
|
|
|
$
|
716
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|
Interest expense, net
|
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|
(137
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)
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|
(115
|
)
|
|
|
|
(140
|
)
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Other, net
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(13
|
)
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|
(24
|
)
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|
|
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(42
|
)
|
Income from continuing operations before income taxes
|
|
|
|
$
|
458
|
|
|
|
|
$
|
244
|
|
|
|
|
$
|
534
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|
Income tax (provision) benefit (b)
|
|
|
|
210
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|
|
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(1,050
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)
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(100
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)
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Income (loss) from continuing operations
|
|
|
|
668
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|
|
|
|
(806
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)
|
|
|
|
434
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|
Loss from discontinued operations, net
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|
|
|
-
|
|
|
|
|
(19
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)
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-
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Net income (loss)
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|
$
|
668
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|
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|
$
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(825
|
)
|
|
|
|
$
|
434
|
|
Net Income (loss) attributable to noncontrolling interest
|
|
|
|
(4
|
)
|
|
|
|
1
|
|
|
|
|
1
|
|
Net income (loss) attributable to company
|
|
|
|
$
|
664
|
|
|
|
|
$
|
(824
|
)
|
|
|
|
$
|
435
|
|
Amounts attributable to company shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
664
|
|
|
|
|
$
|
(805
|
)
|
|
|
|
$
|
435
|
|
Loss from discontinued operations, net
|
|
|
|
-
|
|
|
|
|
(19
|
)
|
|
|
|
-
|
|
Net income (loss) attributable to company
|
|
|
|
$
|
664
|
|
|
|
|
$
|
(824
|
)
|
|
|
|
$
|
435
|
|
Basic and diluted income (loss) per share attributable to company
shareholders:
|
|
|
|
|
|
|
|
|
|
|
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|
Income (loss) from continuing operations
|
|
|
|
$
|
0.76
|
|
|
|
|
$
|
(0.92
|
)
|
|
|
|
$
|
0.50
|
|
Loss from discontinued operations, net
|
|
|
|
-
|
|
|
|
|
(0.02
|
)
|
|
|
|
-
|
|
Basic and diluted net income (loss) per share
|
|
|
|
$
|
0.76
|
|
|
|
|
$
|
(0.94
|
)
|
|
|
|
$
|
0.50
|
|
Basic weighted average common shares outstanding
|
|
|
|
873
|
|
|
|
|
873
|
|
|
|
|
877
|
|
Diluted weighted average common shares outstanding
|
|
|
|
873
|
|
|
|
|
873
|
|
|
|
|
878
|
|
(a) During the three months ended December 31, 2017, Halliburton
recognized an aggregate charge of $385 million, representing a fair
market value adjustment on its existing promissory note with its
primary customer in Venezuela and a full reserve against other
accounts receivables with this customer.
|
(b) Includes a $306 million tax benefit during the three months
ended December 31, 2018 related to a strategic change in
Halliburton's corporate structure, as well as an aggregate $882
million of discrete tax charges during the three months ended
December 31, 2017 primarily related to tax reform as well as other
discrete tax items.
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See Footnote Table 1 for Reconciliation of As Reported Operating
Income to Adjusted Operating Income.
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See Footnote Table 2 for Reconciliation of As Reported Income (loss)
from Continuing Operations to Adjusted Income from Continuing
Operations.
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HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
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Year Ended December 31
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|
|
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|
2018
|
|
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2017
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Revenue:
|
|
|
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|
|
|
|
|
Completion and Production
|
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|
$
|
15,973
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|
|
|
|
$
|
13,077
|
|
Drilling and Evaluation
|
|
|
|
8,022
|
|
|
|
|
7,543
|
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Total revenue
|
|
|
|
$
|
23,995
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|
|
|
|
$
|
20,620
|
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Operating income:
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
2,278
|
|
|
|
|
$
|
1,625
|
|
Drilling and Evaluation
|
|
|
|
745
|
|
|
|
|
726
|
|
Corporate and other
|
|
|
|
(291
|
)
|
|
|
|
(330
|
)
|
Impairments and other charges (a)
|
|
|
|
(265
|
)
|
|
|
|
(647
|
)
|
Total operating income
|
|
|
|
$
|
2,467
|
|
|
|
|
$
|
1,374
|
|
Interest expense, net (b)
|
|
|
|
(554
|
)
|
|
|
|
(593
|
)
|
Other, net
|
|
|
|
(99
|
)
|
|
|
|
(99
|
)
|
Income from continuing operations before income taxes
|
|
|
|
$
|
1,814
|
|
|
|
|
$
|
682
|
|
Income tax provision (c)
|
|
|
|
(157
|
)
|
|
|
|
(1,131
|
)
|
Income (loss) from continuing operations
|
|
|
|
1,657
|
|
|
|
|
(449
|
)
|
Loss from discontinued operations, net
|
|
|
|
-
|
|
|
|
|
(19
|
)
|
Net income (loss)
|
|
|
|
$
|
1,657
|
|
|
|
|
$
|
(468
|
)
|
Net Income (loss) attributable to noncontrolling interest
|
|
|
|
(1
|
)
|
|
|
|
5
|
|
Net income (loss) attributable to company
|
|
|
|
$
|
1,656
|
|
|
|
|
$
|
(463
|
)
|
Amounts attributable to company shareholders:
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
1,656
|
|
|
|
|
$
|
(444
|
)
|
Loss from discontinued operations, net
|
|
|
|
-
|
|
|
|
|
(19
|
)
|
Net income (loss) attributable to company
|
|
|
|
$
|
1,656
|
|
|
|
|
$
|
(463
|
)
|
Basic and diluted income (loss) per share attributable to company
shareholders:
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
1.89
|
|
|
|
|
$
|
(0.51
|
)
|
Loss from discontinued operations, net
|
|
|
|
-
|
|
|
|
|
(0.02
|
)
|
Basic and diluted net income (loss) per share
|
|
|
|
$
|
1.89
|
|
|
|
|
$
|
(0.53
|
)
|
Basic weighted average common shares outstanding
|
|
|
|
875
|
|
|
|
|
870
|
|
Diluted weighted average common shares outstanding
|
|
|
|
877
|
|
|
|
|
870
|
|
(a) During the year ended December 31, 2018, Halliburton recognized
a pre-tax charge of $265 million related to a write-down of its
remaining investment in Venezuela, consisting of receivables, fixed
assets, inventory and other assets and liabilities. During the year
ended December 31, 2017, Halliburton recognized an aggregate charge
of $647 million, representing a fair market value adjustment related
to Venezuela receivables.
|
(b) Includes $104 million of costs related to the early
extinguishment of $1.4 billion of senior notes in the year ended
December 31, 2017.
|
(c) Includes a $306 million tax benefit during the year ended
December 31, 2018 related to a strategic change in Halliburton's
corporate structure and $47 million of accrued taxes in Venezuela
for the charge taken during the first quarter of 2018. Also includes
an aggregate $882 million of non-cash discrete tax charges during
the year ended December 31, 2017 primarily related to tax reform as
well as other discrete tax items.
|
See Footnote Table 1 for Reconciliation of As Reported Operating
Income to Adjusted Operating Income.
|
See Footnote Table 2 for Reconciliation of As Reported Income (loss)
from Continuing Operations to Adjusted Income from Continuing
Operations.
|
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HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
December 31
|
|
|
|
|
2018
|
|
|
|
2017
|
Assets
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
|
|
$
|
2,008
|
|
|
|
|
$
|
2,337
|
Receivables, net
|
|
|
|
5,234
|
|
|
|
|
5,036
|
Inventories
|
|
|
|
3,028
|
|
|
|
|
2,396
|
Other current assets
|
|
|
|
881
|
|
|
|
|
1,008
|
Total current assets
|
|
|
|
11,151
|
|
|
|
|
10,777
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
8,961
|
|
|
|
|
8,521
|
Goodwill
|
|
|
|
2,825
|
|
|
|
|
2,693
|
Deferred income taxes
|
|
|
|
1,465
|
|
|
|
|
1,230
|
Other assets
|
|
|
|
1,661
|
|
|
|
|
1,864
|
Total assets
|
|
|
|
$
|
26,063
|
|
|
|
|
$
|
25,085
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
3,018
|
|
|
|
|
$
|
2,554
|
Accrued employee compensation and benefits
|
|
|
|
714
|
|
|
|
|
746
|
Short-term borrowings and current maturities of long-term debt
|
|
|
|
36
|
|
|
|
|
512
|
Other current liabilities
|
|
|
|
1,081
|
|
|
|
|
1,050
|
Total current liabilities
|
|
|
|
4,849
|
|
|
|
|
4,862
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
10,421
|
|
|
|
|
10,430
|
Employee compensation and benefits
|
|
|
|
483
|
|
|
|
|
609
|
Other liabilities
|
|
|
|
766
|
|
|
|
|
835
|
Total liabilities
|
|
|
|
16,519
|
|
|
|
|
16,736
|
|
|
|
|
|
|
|
|
|
Company shareholders' equity
|
|
|
|
9,522
|
|
|
|
|
8,322
|
Noncontrolling interest in consolidated subsidiaries
|
|
|
|
22
|
|
|
|
|
27
|
Total shareholders' equity
|
|
|
|
9,544
|
|
|
|
|
8,349
|
Total liabilities and shareholders' equity
|
|
|
|
$
|
26,063
|
|
|
|
|
$
|
25,085
|
|
|
|
|
|
|
|
|
|
HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash Flows
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
|
|
|
|
2018
|
|
|
|
2017
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
1,657
|
|
|
|
|
$
|
(468
|
)
|
Adjustments to reconcile net income (loss) to cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
1,606
|
|
|
|
|
1,556
|
|
Working capital (a)
|
|
|
|
(384
|
)
|
|
|
|
(626
|
)
|
Deferred income tax provision (benefit), continuing operations
|
|
|
|
(267
|
)
|
|
|
|
734
|
|
Impairments and other charges
|
|
|
|
265
|
|
|
|
|
647
|
|
Other
|
|
|
|
280
|
|
|
|
|
625
|
|
Total cash flows provided by (used in) operating activities
|
|
|
|
3,157
|
|
|
|
|
2,468
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(2,026
|
)
|
|
|
|
(1,373
|
)
|
Proceeds from sales of property, plant and equipment
|
|
|
|
218
|
|
|
|
|
158
|
|
Payments to acquire businesses
|
|
|
|
(187
|
)
|
|
|
|
(628
|
)
|
Other investing activities
|
|
|
|
2
|
|
|
|
|
(84
|
)
|
Total cash flows provided by (used in) investing activities
|
|
|
|
(1,993
|
)
|
|
|
|
(1,927
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Dividends to shareholders
|
|
|
|
(630
|
)
|
|
|
|
(626
|
)
|
Payments on long-term borrowings
|
|
|
|
(445
|
)
|
|
|
|
(1,641
|
)
|
Stock repurchase program
|
|
|
|
(400
|
)
|
|
|
|
-
|
|
Other financing activities
|
|
|
|
56
|
|
|
|
|
106
|
|
Total cash flows provided by (used in) financing activities
|
|
|
|
(1,419
|
)
|
|
|
|
(2,161
|
)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
(74
|
)
|
|
|
|
(52
|
)
|
Decrease in cash and equivalents
|
|
|
|
(329
|
)
|
|
|
|
(1,672
|
)
|
Cash and equivalents at beginning of period
|
|
|
|
2,337
|
|
|
|
|
4,009
|
|
Cash and equivalents at end of period
|
|
|
|
$
|
2,008
|
|
|
|
|
$
|
2,337
|
|
(a) Working capital includes receivables, inventories and accounts
payable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Operating Segment and Geographic Region
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
December 31
|
|
|
September 30
|
Revenue
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
By operating segment:
|
|
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
3,832
|
|
|
|
$
|
3,804
|
|
|
|
$
|
4,170
|
|
Drilling and Evaluation
|
|
|
|
2,104
|
|
|
|
2,136
|
|
|
|
2,002
|
|
Total revenue
|
|
|
|
$
|
5,936
|
|
|
|
$
|
5,940
|
|
|
|
$
|
6,172
|
|
|
|
|
|
|
|
|
|
|
|
|
By geographic region:
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
$
|
3,341
|
|
|
|
$
|
3,400
|
|
|
|
$
|
3,739
|
|
Latin America
|
|
|
|
607
|
|
|
|
615
|
|
|
|
522
|
|
Europe/Africa/CIS
|
|
|
|
746
|
|
|
|
776
|
|
|
|
757
|
|
Middle East/Asia
|
|
|
|
1,242
|
|
|
|
1,149
|
|
|
|
1,154
|
|
Total revenue
|
|
|
|
$
|
5,936
|
|
|
|
$
|
5,940
|
|
|
|
$
|
6,172
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
By operating segment:
|
|
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
496
|
|
|
|
$
|
554
|
|
|
|
$
|
613
|
|
Drilling and Evaluation
|
|
|
|
185
|
|
|
|
293
|
|
|
|
181
|
|
Total
|
|
|
|
681
|
|
|
|
847
|
|
|
|
794
|
|
Corporate and other
|
|
|
|
(73
|
)
|
|
|
(79
|
)
|
|
|
(78
|
)
|
Impairments and other charges
|
|
|
|
-
|
|
|
|
(385
|
)
|
|
|
-
|
|
Total operating income
|
|
|
|
$
|
608
|
|
|
|
$
|
383
|
|
|
|
$
|
716
|
|
|
|
|
|
|
|
|
|
|
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Operating Segment and Geographic Region
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
Revenue
|
|
|
|
2018
|
|
|
|
2017
|
By operating segment:
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
15,973
|
|
|
|
|
$
|
13,077
|
|
Drilling and Evaluation
|
|
|
|
8,022
|
|
|
|
|
7,543
|
|
Total revenue
|
|
|
|
$
|
23,995
|
|
|
|
|
$
|
20,620
|
|
|
|
|
|
|
|
|
|
|
By geographic region:
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
$
|
14,431
|
|
|
|
|
$
|
11,564
|
|
Latin America
|
|
|
|
2,065
|
|
|
|
|
2,116
|
|
Europe/Africa/CIS
|
|
|
|
2,945
|
|
|
|
|
2,781
|
|
Middle East/Asia
|
|
|
|
4,554
|
|
|
|
|
4,159
|
|
Total revenue
|
|
|
|
$
|
23,995
|
|
|
|
|
$
|
20,620
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
By operating segment:
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
2,278
|
|
|
|
|
$
|
1,625
|
|
Drilling and Evaluation
|
|
|
|
745
|
|
|
|
|
726
|
|
Total
|
|
|
|
3,023
|
|
|
|
|
2,351
|
|
Corporate and other
|
|
|
|
(291
|
)
|
|
|
|
(330
|
)
|
Impairments and other charges
|
|
|
|
(265
|
)
|
|
|
|
(647
|
)
|
Total operating income
|
|
|
|
$
|
2,467
|
|
|
|
|
$
|
1,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTE TABLE 1
HALLIBURTON COMPANY
Reconciliation of As Reported Operating Income to Adjusted
Operating Income
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
As reported operating income
|
|
|
$
|
608
|
|
|
|
$
|
383
|
|
|
|
$
|
2,467
|
|
|
|
$
|
1,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments and other changes
|
|
|
-
|
|
|
|
385
|
|
|
|
265
|
|
|
|
647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (a)
|
|
|
$
|
608
|
|
|
|
$
|
768
|
|
|
|
$
|
2,732
|
|
|
|
$
|
2,021
|
(a)
|
|
Management believes that operating income adjusted for impairments
and other charges for the three months ended December 31, 2017 and
the years ended December 31, 2018 and December 31, 2017 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 operating income
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 effect of these items.
Adjusted operating income is calculated as: "As reported operating
income" plus "Impairments and other charges" for the three months
ended December 31, 2017 and the years ended December 31, 2018 and
December 31, 2017. There were no such charges for the three months
ended December 31, 2018.
|
|
FOOTNOTE TABLE 2
HALLIBURTON COMPANY
Reconciliation of As Reported Income (Loss) from Continuing
Operations to
Adjusted Income from Continuing Operations
(Millions of dollars and shares except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31, 2018
|
|
|
|
December 31, 2017
|
|
|
|
December 31, 2018
|
|
|
|
December 31, 2017
|
As reported income (loss) from continuing operations attributable to
company
|
|
|
|
$
|
664
|
|
|
|
|
$
|
(805
|
)
|
|
|
|
$
|
1,656
|
|
|
|
|
$
|
(444
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments and other charges
|
|
|
|
-
|
|
|
|
|
385
|
|
|
|
|
265
|
|
|
|
|
647
|
|
Costs related to early extinguishment of debt
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
104
|
|
Total adjustments, before taxes
|
|
|
|
-
|
|
|
|
|
385
|
|
|
|
|
265
|
|
|
|
|
751
|
|
Tax provision (benefit) (a)
|
|
|
|
(306
|
)
|
|
|
|
882
|
|
|
|
|
(259
|
)
|
|
|
|
755
|
|
Total adjustments, net of taxes (b)
|
|
|
|
$
|
(306
|
)
|
|
|
|
$
|
1,267
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
1,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from continuing operations attributable to company
|
|
|
|
$
|
358
|
|
|
|
|
$
|
462
|
|
|
|
|
$
|
1,662
|
|
|
|
|
$
|
1,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported diluted weighted average common shares outstanding (c)
|
|
|
|
873
|
|
|
|
|
873
|
|
|
|
|
877
|
|
|
|
|
870
|
|
Adjusted diluted weighted average common shares outstanding (c)
|
|
|
|
873
|
|
|
|
|
874
|
|
|
|
|
877
|
|
|
|
|
872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported income (loss) from continuing operations per diluted
share (d)
|
|
|
|
$
|
0.76
|
|
|
|
|
$
|
(0.92
|
)
|
|
|
|
$
|
1.89
|
|
|
|
|
$
|
(0.51
|
)
|
Adjusted income from continuing operations per diluted share (d)
|
|
|
|
$
|
0.41
|
|
|
|
|
$
|
0.53
|
|
|
|
|
$
|
1.90
|
|
|
|
|
$
|
1.22
|
|
(a)
|
|
During the fourth quarter of 2018, Halliburton recognized a $306
million tax benefit related to a strategic change in Halliburton's
corporate structure. During the fourth quarter of 2017, Halliburton
recognized an aggregate $882 million of discrete tax charges
primarily related to tax reform as well as other discrete tax items.
Also included in the year ended December 31, 2018 is $47 million of
accrued taxes in Venezuela for the charge taken during the first
quarter of 2018. Also included is the tax effect of the total
adjustments during the respective periods.
|
(b)
|
|
Management believes that income (loss) from continuing operations
adjusted for impairments and other charges and costs related to
early extinguishment of debt, including the related tax effects and
other tax adjustments, 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 (loss) from continuing
operations without the impact of these items as an indicator of
performance, to identify underlying trends in the business and to
establish operational goals. Total adjustments remove the effect of
these items. Adjusted income from continuing operations attributable
to company is calculated as: "As reported income (loss) from
continuing operations attributable to company" plus "Total
adjustments, net of taxes" for the three months ended December 31,
2018 and December 31, 2017 and the years ended December 31, 2018 and
December 31, 2017.
|
(c)
|
|
As reported diluted weighted average common shares outstanding for
the three months ended December 31, 2017 and year ended December 31,
2017 excludes options to purchase one million and two million shares
of common stock, respectively, as their impact would be antidilutive
because Halliburton's reported income from continuing operations
attributable to company was in a loss position during the period.
When adjusting income from continuing operations attributable to
company in the period for the adjustments discussed above, these
shares become dilutive.
|
(d)
|
|
As reported income (loss) from continuing operations per diluted
share is calculated as: "As reported income (loss) 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 "Adjusted diluted weighted average common shares outstanding."
|
Conference Call Details
Halliburton Company (NYSE: HAL) will host a conference call on Tuesday,
January 22, 2019, to discuss its fourth quarter 2018 financial results.
The call will begin at 8:00 AM Central Time (9:00 AM Eastern Time).
Please visit the website
to listen to the call via live webcast. In addition, you may participate
in the call by dialing (888) 393-0263 within North America or +1 (973)
453-2259 outside of North America. A passcode is not required. Attendees
should log in to the webcast or dial in approximately 15 minutes prior
to the start of the call.
A replay of the conference call will be available on Halliburton's
website for seven days following the call. Also, a replay may be
accessed by telephone at (855) 859-2056 within North America or +1 (404)
537-3406 outside of North America, using the passcode 5964108.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190122005211/en/
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