Halliburton Announces Second Quarter 2018 Results HOUSTON
-
Income from continuing operations of $0.58 per diluted share
Halliburton Company (NYSE:HAL) announced today income from continuing
operations of $511 million, or $0.58 per diluted share, for the second
quarter of 2018. This compares to reported income from continuing
operations for the first quarter of 2018 of $46 million, or $0.05 per
diluted share, and adjusted income from continuing operations for the
first quarter of 2018 of $358 million, or $0.41 per diluted share,
excluding impairments and other charges related to a write-down of all
of the Company's remaining investment in Venezuela. Operating income was
$789 million during the second quarter of 2018, compared to reported
operating income of $354 million and adjusted operating income of $619
million in the first quarter of 2018.
“We executed on our plan and delivered strong results. We achieved total
company revenue of $6.1 billion, representing a 7% increase, while
operating income was $789 million, a 27% increase over adjusted
operating income for the first quarter of 2018. Our overall strategy is
working well and we plan to stay the course,” commented Jeff Miller,
President and CEO.
“Our Completion & Production division grew operating income by 34%,
primarily driven by the strength of U.S. land. Despite pricing levels
that have yet to fully rebound from the recent down cycle, we are
achieving outstanding margins.
“North America had a strong performance this quarter. This is the
largest and fastest growing energy market in the world. On a
year-to-date basis, we have grown revenues 47% year over year, while the
U.S. land rig count has increased 16%. U.S. land achieved margins that
are closing in on what we achieved during the previous peak in 2014.
“Halliburton is better positioned for the international recovery than it
has ever been and we are ready to make the most of it. We have
competitive market share in all of the major markets and have
consistently executed to manage the changing dynamics.
“Halliburton is resilient, adaptable and creative and we outperform by
keeping our core competencies strong and delivering superior service
quality. Our value proposition resonates with our customers and we will
continue to maximize their asset value while providing industry leading
returns for our shareholders,” concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the second quarter of 2018 was $4.2
billion, an increase of $357 million, or 9%, from the first quarter of
2018, while operating income was $669 million, an increase of $169
million, or 34%. Improvements were led by increased pressure pumping and
artificial lift activity in the United States land sector. Additionally,
results improved due to higher pressure pumping services in
Europe/Africa/CIS and higher completion tool sales in the Middle East,
partially offset by reduced completion tool sales in Europe/Africa/CIS
and pressure pumping services in the Middle East.
Drilling and Evaluation
Drilling and Evaluation revenue in the second quarter of 2018 was $2.0
billion, an increase of $50 million, or 3%, from the first quarter of
2018, while operating income was $191 million, an increase of $3
million, or 2%. These improvements were primarily due to increased
drilling activity in the United States land sector, increased drilling
services and project management activity in the Middle East and India,
and increased software sales in Mexico. These improvements were
partially offset by reduced drilling fluid activity in the Gulf of
Mexico.
Geographic Regions
North America
North America revenue in the second quarter of 2018 was $3.8 billion, a
9% increase sequentially. This improvement was driven by increased
activity throughout the United States land sector within the majority of
Halliburton’s product service lines, primarily pressure pumping, as well
as higher drilling and artificial lift activity. Partially offsetting
these increases were lower pressure pumping activity in Canada and
reduced drilling fluid activity in the Gulf of Mexico.
International
International revenue in the second quarter of 2018 was $2.3 billion, a
4% increase sequentially, resulting primarily from increased drilling
services and project management activity in the Middle East, as well as
higher project management activity and software sales in Mexico. These
increases were partially offset by lower completion tool sales in
Europe/Africa/CIS, particularly in the North Sea and Angola.
Latin America revenue in the second quarter of 2018 was $479 million, a
5% increase sequentially, resulting primarily from increases in software
sales and project management activity in Mexico, as well as stimulation
activity in Argentina.
Europe/Africa/CIS revenue in the second quarter of 2018 was $726
million, slightly improved sequentially. Higher pressure pumping and
pipeline services throughout the region were offset by lower completion
tool sales, primarily in the North Sea and Angola, along with reduced
drilling activity in Azerbaijan.
Middle East/Asia revenue in the second quarter of 2018 was $1.1 billion,
a 6% increase sequentially, largely resulting from increased drilling
services, project management activity, and completion tool sales in the
Middle East, as well as higher project management activity in India.
Selective Technology & Highlights
-
Halliburton acquired Athlon Solutions, a manufacturer of chemicals for
the upstream oil & gas industry and a leading provider of specialty
water and process treatment chemicals, customized engineering
solutions, and services. Athlon’s chemicals manufacturing and water
and process treatment business add key complementary capabilities to
accelerate growth of Halliburton's Multi-Chem product service line and
enhances the Company's ability to deliver superior customer service
and custom chemistry to more customers.
-
Halliburton United Arab Emirates (UAE) facilities received the
American Petroleum Institute (API) Specification Q2, ISO 9001 and
OHSAS 18001 certifications. Halliburton facilities are the first in
the oil services industry to receive the three registrations in the
UAE, and the first among the company’s facilities in the Middle East
to achieve this standard of excellence.
-
Saudi Aramco awarded Halliburton an unconventional gas stimulation
services contract to further improve the economics of Saudi Aramco’s
Unconventional Resources program. Halliburton will utilize an
integrated approach to support Saudi Aramco’s increased recovery and
production targets by providing project management, hydraulic
fracturing, coiled tubing, wireline and perforating, completion tools
and testing services.
-
Halliburton launched several products within various product service
lines in our Drilling and Evaluation division during the second
quarter of 2018. New launches within this division included EarthStar™
ultra-deep resistivity service, a logging-while-drilling technology,
and Stega™ efficient layout design, an advanced drill bit that
optimizes the placement of back-up cutters. Additionally, e-cd™ Plus
system is a new technology that automates and enhances continuous
circulation connections during drilling and tipping operations.
-
Halliburton introduced InnerVue™ Non-Intrusive Pipeline and Wellbore
Diagnostics, a technology that quickly and accurately detects
blockages or leaks and profiles deposits in pipelines and wellbores.
InnerVue diagnostics interprets pressure waves reflecting from
internal features of the pipeline or wellbore and extrapolates the
pressure reflections into deposit profiles or blockage and leak
locations.
-
Landmark launched DecisionSpace® Production Engineering and
DecisionSpace® Production Insights. This software helps operators
better utilize data to reduce costs and unlock production potential.
-
Halliburton acquired the technology behind the BaraOmni™ hybrid
separation system, a next-level separation technology that removes
ultrafine low-gravity solids (LGS) effectively, resulting in better
performing, longer-lasting fluid systems with significantly reduced
costs for operators.
About Halliburton
Founded in 1919, Halliburton is one of the world's largest providers of
products and services to the energy industry. With over 55,000
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 offshore 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 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 March 31, 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.
|
|
|
|
HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30
|
|
|
March 31
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
$
|
4,164
|
|
|
|
$
|
3,132
|
|
|
|
$
|
3,807
|
|
Drilling and Evaluation
|
|
|
1,983
|
|
|
|
1,825
|
|
|
|
1,933
|
|
Total revenue
|
|
|
$
|
6,147
|
|
|
|
$
|
4,957
|
|
|
|
$
|
5,740
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
$
|
669
|
|
|
|
$
|
397
|
|
|
|
$
|
500
|
|
Drilling and Evaluation
|
|
|
191
|
|
|
|
125
|
|
|
|
188
|
|
Corporate and other
|
|
|
(71
|
)
|
|
|
(114
|
)
|
|
|
(69
|
)
|
Impairments and other charges (a)
|
|
|
—
|
|
|
|
(262
|
)
|
|
|
(265
|
)
|
Total operating income
|
|
|
$
|
789
|
|
|
|
$
|
146
|
|
|
|
$
|
354
|
|
Interest expense, net
|
|
|
(137
|
)
|
|
|
(121
|
)
|
|
|
(140
|
)
|
Other, net
|
|
|
(19
|
)
|
|
|
(26
|
)
|
|
|
(25
|
)
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
633
|
|
|
|
$
|
(1
|
)
|
|
|
$
|
189
|
|
Income tax (provision) benefit (b)
|
|
|
(125
|
)
|
|
|
29
|
|
|
|
(142
|
)
|
Net income
|
|
|
$
|
508
|
|
|
|
$
|
28
|
|
|
|
$
|
47
|
|
Net (income) loss attributable to noncontrolling interest
|
|
|
3
|
|
|
|
—
|
|
|
|
(1
|
)
|
Net income attributable to company
|
|
|
$
|
511
|
|
|
|
$
|
28
|
|
|
|
$
|
46
|
|
Basic and diluted net income per share
|
|
|
$
|
0.58
|
|
|
|
$
|
0.03
|
|
|
|
$
|
0.05
|
|
Basic weighted average common shares outstanding
|
|
|
877
|
|
|
|
869
|
|
|
|
875
|
|
Diluted weighted average common shares outstanding
|
|
|
880
|
|
|
|
871
|
|
|
|
878
|
|
(a) During the three months ended March 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
three months ended June 30, 2017, Halliburton recognized a $262
million fair market value adjustment related to Venezuela.
|
(b) Includes $47 million of accrued taxes in Venezuela for the
charge taken during the three months ended March 31, 2018.
|
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 from
Continuing Operations to Adjusted Income from Continuing Operations.
|
|
|
|
|
|
HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30
|
|
|
|
|
2018
|
|
|
|
|
2017
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
7,971
|
|
|
|
|
|
$
|
5,736
|
|
Drilling and Evaluation
|
|
|
|
3,916
|
|
|
|
|
|
3,500
|
|
Total revenue
|
|
|
|
$
|
11,887
|
|
|
|
|
|
$
|
9,236
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
1,169
|
|
|
|
|
|
$
|
544
|
|
Drilling and Evaluation
|
|
|
|
379
|
|
|
|
|
|
247
|
|
Corporate and other
|
|
|
|
(140
|
)
|
|
|
|
|
(180
|
)
|
Impairments and other charges (a)
|
|
|
|
(265
|
)
|
|
|
|
|
(262
|
)
|
Total operating income
|
|
|
|
$
|
1,143
|
|
|
|
|
|
$
|
349
|
|
Interest expense, net (b)
|
|
|
|
(277
|
)
|
|
|
|
|
(363
|
)
|
Other, net
|
|
|
|
(44
|
)
|
|
|
|
|
(44
|
)
|
Income (loss) from continuing operations before income taxes
|
|
|
|
$
|
822
|
|
|
|
|
|
$
|
(58
|
)
|
Income tax (provision) benefit
|
|
|
|
(267
|
)
|
|
|
|
|
54
|
|
Net income (loss)
|
|
|
|
$
|
555
|
|
|
|
|
|
$
|
(4
|
)
|
Net loss attributable to noncontrolling interest
|
|
|
|
2
|
|
|
|
|
|
—
|
|
Net income (loss) attributable to company
|
|
|
|
$
|
557
|
|
|
|
|
|
$
|
(4
|
)
|
Basic net income per share
|
|
|
|
$
|
0.64
|
|
|
|
|
|
$
|
—
|
|
Diluted net income per share
|
|
|
|
$
|
0.63
|
|
|
|
|
|
$
|
—
|
|
Basic weighted average common shares outstanding
|
|
|
|
876
|
|
|
|
|
|
868
|
|
Diluted weighted average common shares outstanding
|
|
|
|
879
|
|
|
|
|
|
868
|
|
(a) During the six months ended June 30, 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
six months ended June 30, 2017, Halliburton recognized a $262
million fair market value adjustment related to Venezuela.
|
(b) Includes $104 million of costs related to the early
extinguishment of $1.4 billion of senior notes in the six months
ended June 30, 2017.
|
|
HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
June 30
|
|
|
December 31
|
|
|
|
2018
|
|
|
2017
|
Assets
|
Current assets:
|
|
|
|
|
|
|
Cash and equivalents
|
|
|
$
|
2,058
|
|
|
|
$
|
2,337
|
Marketable securities
|
|
|
414
|
|
|
|
70
|
Receivables, net
|
|
|
5,403
|
|
|
|
5,036
|
Inventories
|
|
|
2,637
|
|
|
|
2,396
|
Other current assets
|
|
|
924
|
|
|
|
938
|
Total current assets
|
|
|
11,436
|
|
|
|
10,777
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
8,825
|
|
|
|
8,521
|
Goodwill
|
|
|
2,824
|
|
|
|
2,693
|
Deferred income taxes
|
|
|
1,117
|
|
|
|
1,230
|
Other assets
|
|
|
1,563
|
|
|
|
1,864
|
Total assets
|
|
|
$
|
25,765
|
|
|
|
$
|
25,085
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
3,029
|
|
|
|
$
|
2,554
|
Accrued employee compensation and benefits
|
|
|
635
|
|
|
|
746
|
Short-term borrowings and current maturities of long-term debt
|
|
|
444
|
|
|
|
512
|
Other current liabilities
|
|
|
999
|
|
|
|
1,050
|
Total current liabilities
|
|
|
5,107
|
|
|
|
4,862
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
10,427
|
|
|
|
10,430
|
Employee compensation and benefits
|
|
|
585
|
|
|
|
609
|
Other liabilities
|
|
|
803
|
|
|
|
835
|
Total liabilities
|
|
|
16,922
|
|
|
|
16,736
|
|
|
|
|
|
|
|
Company shareholders’ equity
|
|
|
8,823
|
|
|
|
8,322
|
Noncontrolling interest in consolidated subsidiaries
|
|
|
20
|
|
|
|
27
|
Total shareholders’ equity
|
|
|
8,843
|
|
|
|
8,349
|
Total liabilities and shareholders’ equity
|
|
|
$
|
25,765
|
|
|
|
$
|
25,085
|
|
|
|
|
|
HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash Flows
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30
|
|
|
|
|
2018
|
|
|
|
2017
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
555
|
|
|
|
|
$
|
(4
|
)
|
Adjustments to reconcile net income (loss) to cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
784
|
|
|
|
|
769
|
|
Impairments and other charges
|
|
|
|
312
|
|
|
|
|
262
|
|
Working capital (a)
|
|
|
|
(163
|
)
|
|
|
|
(222
|
)
|
Other
|
|
|
|
40
|
|
|
|
|
(454
|
)
|
Total cash flows provided by operating activities
|
|
|
|
1,528
|
|
|
|
|
351
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(1,066
|
)
|
|
|
|
(592
|
)
|
Purchases of investment securities, net of sales
|
|
|
|
(307
|
)
|
|
|
|
(10
|
)
|
Payments to acquire businesses
|
|
|
|
(148
|
)
|
|
|
|
—
|
|
Proceeds from sales of property, plant and equipment
|
|
|
|
121
|
|
|
|
|
76
|
|
Other investing activities
|
|
|
|
(37
|
)
|
|
|
|
(19
|
)
|
Total cash flows used in investing activities
|
|
|
|
(1,437
|
)
|
|
|
|
(545
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Dividends to shareholders
|
|
|
|
(316
|
)
|
|
|
|
(312
|
)
|
Payments on long-term borrowings
|
|
|
|
(26
|
)
|
|
|
|
(1,623
|
)
|
Other financing activities
|
|
|
|
12
|
|
|
|
|
294
|
|
Total cash flows used in financing activities
|
|
|
|
(330
|
)
|
|
|
|
(1,641
|
)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
(40
|
)
|
|
|
|
(35
|
)
|
Decrease in cash and equivalents
|
|
|
|
(279
|
)
|
|
|
|
(1,870
|
)
|
Cash and equivalents at beginning of period
|
|
|
|
2,337
|
|
|
|
|
4,009
|
|
Cash and equivalents at end of period
|
|
|
|
$
|
2,058
|
|
|
|
|
$
|
2,139
|
|
|
(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
|
|
|
|
|
June 30
|
|
|
|
March 31
|
Revenue
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2018
|
By operating segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
4,164
|
|
|
|
|
$
|
3,132
|
|
|
|
|
$
|
3,807
|
|
Drilling and Evaluation
|
|
|
|
1,983
|
|
|
|
|
1,825
|
|
|
|
|
1,933
|
|
Total revenue
|
|
|
|
$
|
6,147
|
|
|
|
|
$
|
4,957
|
|
|
|
|
$
|
5,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By geographic region:
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
$
|
3,834
|
|
|
|
|
$
|
2,770
|
|
|
|
|
$
|
3,517
|
|
Latin America
|
|
|
|
479
|
|
|
|
|
508
|
|
|
|
|
457
|
|
Europe/Africa/CIS
|
|
|
|
726
|
|
|
|
|
679
|
|
|
|
|
716
|
|
Middle East/Asia
|
|
|
|
1,108
|
|
|
|
|
1,000
|
|
|
|
|
1,050
|
|
Total revenue
|
|
|
|
$
|
6,147
|
|
|
|
|
$
|
4,957
|
|
|
|
|
$
|
5,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
By operating segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
|
$
|
669
|
|
|
|
|
$
|
397
|
|
|
|
|
$
|
500
|
|
Drilling and Evaluation
|
|
|
|
191
|
|
|
|
|
125
|
|
|
|
|
188
|
|
Total
|
|
|
|
860
|
|
|
|
|
522
|
|
|
|
|
688
|
|
Corporate and other
|
|
|
|
(71
|
)
|
|
|
|
(114
|
)
|
|
|
|
(69
|
)
|
Impairments and other charges
|
|
|
|
—
|
|
|
|
|
(262
|
)
|
|
|
|
(265
|
)
|
Total operating income
|
|
|
|
$
|
789
|
|
|
|
|
$
|
146
|
|
|
|
|
$
|
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnote Table 1 for Reconciliation of As Reported Operating
Income to Adjusted Operating Income.
|
|
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Operating Segment and Geographic Region
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
|
|
Six Months Ended June 30
|
Revenue
|
|
|
2018
|
|
|
2017
|
By operating segment:
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
$
|
7,971
|
|
|
|
|
$
|
5,736
|
|
Drilling and Evaluation
|
|
|
3,916
|
|
|
|
|
3,500
|
|
Total revenue
|
|
|
$
|
11,887
|
|
|
|
|
$
|
9,236
|
|
|
|
|
|
|
|
|
|
By geographic region:
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
7,351
|
|
|
|
|
$
|
5,001
|
|
Latin America
|
|
|
936
|
|
|
|
|
971
|
|
Europe/Africa/CIS
|
|
|
1,442
|
|
|
|
|
1,283
|
|
Middle East/Asia
|
|
|
2,158
|
|
|
|
|
1,981
|
|
Total revenue
|
|
|
$
|
11,887
|
|
|
|
|
$
|
9,236
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
By operating segment:
|
|
|
|
|
|
|
|
Completion and Production
|
|
|
$
|
1,169
|
|
|
|
|
$
|
544
|
|
Drilling and Evaluation
|
|
|
379
|
|
|
|
|
247
|
|
Total
|
|
|
1,548
|
|
|
|
|
791
|
|
Corporate and other
|
|
|
(140
|
)
|
|
|
|
(180
|
)
|
Impairments and other charges
|
|
|
(265
|
)
|
|
|
|
(262
|
)
|
Total operating income
|
|
|
$
|
1,143
|
|
|
|
|
$
|
349
|
|
|
FOOTNOTE TABLE 1
HALLIBURTON COMPANY
Reconciliation of As Reported Operating Income to Adjusted
Operating Income
(Millions of dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
June 30, 2018
|
|
|
|
March 31, 2018
|
As reported operating income
|
|
|
$
|
789
|
|
|
|
|
$
|
354
|
|
|
|
|
|
|
|
|
Impairments and other charges
|
|
|
—
|
|
|
|
|
265
|
|
|
|
|
|
|
|
|
Adjusted operating income (a)
|
|
|
$
|
789
|
|
|
|
|
$
|
619
|
(a)
|
|
Management believes that operating income adjusted for impairments
and other charges for the three months ended March 31, 2018 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 March 31, 2018. There were no such operating
charges for the three months ended June 30, 2018.
|
|
FOOTNOTE TABLE 2
HALLIBURTON COMPANY
Reconciliation of As Reported Income from Continuing Operations to
Adjusted Income from Continuing Operations
(Millions of dollars and shares except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2018
|
As reported income from continuing operations attributable to company
|
|
|
|
$
|
46
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
Impairments and other charges
|
|
|
|
265
|
Total adjustments, before taxes (a)
|
|
|
|
265
|
Tax provision (b)
|
|
|
|
47
|
Total adjustments, net of taxes
|
|
|
|
$
|
312
|
|
|
|
|
|
Adjusted income from continuing operations attributable to company
|
|
|
|
$
|
358
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
|
|
878
|
|
|
|
|
|
As reported income from continuing operations per diluted share (c)
|
|
|
|
$
|
0.05
|
Adjusted income from continuing operations per diluted share (c)
|
|
|
|
$
|
0.41
|
|
|
|
(a)
|
|
Management believes that income from continuing operations adjusted
for impairments and other charges 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
without the impact of these items as an indicator of performance, to
identify underlying trends in the business and to establish
operational goals. The adjustment removes the effect of these items.
Adjusted income from continuing operations attributable to company
is calculated as: “As reported income from continuing operations
attributable to company” plus "Total adjustments, net of taxes" for
the three months ended March 31, 2018. There were no such operating
charges for the three months ended June 30, 2018.
|
|
|
|
(b)
|
|
Represents $47 million of accrued taxes in Venezuela for the charge
taken during the three months ended March 31, 2018.
|
|
|
|
(c)
|
|
As reported income from continuing operations per diluted share is
calculated as: "As reported income from continuing operations
attributable to company" divided by "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 "Diluted weighted
average common shares outstanding."
|
Conference Call Details
Halliburton will host a conference call on Monday, July 23, 2018, to
discuss the second 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 live via webcast.
Interested parties may also participate in the call by dialing (888)
393-0263 within North America or (973) 453-2259 outside North America. 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
website for seven days following the call. Also, a replay may be
accessed by telephone at (855) 859-2056 within North America or (404)
537-3406 outside of North America, using the passcode 6883878.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180723005090/en/ Copyright Business Wire 2018
Source: Business Wire
(July 23, 2018 - 6:45 AM EDT)
News by QuoteMedia
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