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Released October 21, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Halliburton Corporation (NYSE:HAL) (Houston), a major supplier of products and services to the upstream oil & gas industry, soared to record revenues in the third quarter of 2014, as demand for services in North America exceeded expectations and operations in the Middle East overcame geopolitical obstacles. Net income was reported to be $1.2 billion, compared with $706 million in the third quarter of 2013.
Industrial Info is tracking more than $6.4 billion in active projects involving Halliburton, including the $250 million expansion of the Zubair Crude Oil Field, located west of Basrah, Iraq. The project is expected to boost output from 270,000 barrels per day (BBL/d) to 700,000 BBL/d, partly by overhauling 63 old wells in the field by 2017, with an ultimate production target of 1.2 million BBL/d. The facility is owned by Eni SpA (NYSE:E) (Rome, Italy). Halliburton is serving as a contractor, alongside Baker Hughes (NYSE:BHI) (Houston, Texas) and Iraqi Drilling Company (Baghdad, Iraq).
View Project Report - 300037043
Total revenues stood at $8.7 billion, a 16.45% increase from the same period last year. Although the company saw a drop in Drilling & Exploration activity in the Gulf of Mexico, service intensity levels in North America skyrocketed after completion volumes per well grew more than 50%. In Latin America, Halliburton reported solid growth in most of its profit lines, including testing and directional drilling in Brazil, and workover and stimulation activity in Venezuela. The company also saw an improvement in consulting and fluid services in the Eastern Hemisphere, particularly in continental Europe, Angola, Oman and Saudi Arabia.
Capital expenditures for the third quarter were reported to be $2.28 billion, compared with $2.08 in third-quarter 2013. Also during the period, the company reduced its existing loss contingency for the Deepwater Horizon blowout in April 2010 by $100 million and recorded $95 million for an expected insurance recovery related to the settlement.
"We also made progress on pricing on our stimulation contract renewals, and on cost recovery for ongoing contracts," said Dave Lesar, the president, chairman and chief executive officer of Halliburton, in a conference call. "Across key basins, we have negotiated higher prices that, at a minimum, should recover current and expected future cost inflation. We should begin to see the full impact of contract pricing as we move into 2015."
Halliburton's strong service intensity in North America is expected to continue for the remainder of the year, while revenue expansion in the Eastern Hemisphere is expected to average in the low double-digits by the end of the year. The company announced it will pursue a joint venture with Petrotech (Xinjiang) Engineering Company Limited to focus on hydraulic fracturing in China, and it will perform field services for Ecuador's Igapo project, which is managed by Ecuador's state-run oil company Petroamazonas.
"We expect to be awarded $1 billion of new work in Iraq," Lesar said. "And, consistent with previous years, we expect the fourth quarter in the Eastern Hemisphere to be our strongest quarter of the year, due to seasonal year-end software and equipment sales."
He added: "Over the last three years, we've delivered industry-leading, double-digit revenue growth in the Eastern Hemisphere, and as we look ahead to 2015, we anticipate the rate of growth my slightly moderate due to headwinds from ongoing geopolitical issues, as well as customer spending adjustments."
For more information, visit Industrial Info's Oil & Gas Production Database.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Industrial Info is tracking more than $6.4 billion in active projects involving Halliburton, including the $250 million expansion of the Zubair Crude Oil Field, located west of Basrah, Iraq. The project is expected to boost output from 270,000 barrels per day (BBL/d) to 700,000 BBL/d, partly by overhauling 63 old wells in the field by 2017, with an ultimate production target of 1.2 million BBL/d. The facility is owned by Eni SpA (NYSE:E) (Rome, Italy). Halliburton is serving as a contractor, alongside Baker Hughes (NYSE:BHI) (Houston, Texas) and Iraqi Drilling Company (Baghdad, Iraq).
View Project Report - 300037043
Total revenues stood at $8.7 billion, a 16.45% increase from the same period last year. Although the company saw a drop in Drilling & Exploration activity in the Gulf of Mexico, service intensity levels in North America skyrocketed after completion volumes per well grew more than 50%. In Latin America, Halliburton reported solid growth in most of its profit lines, including testing and directional drilling in Brazil, and workover and stimulation activity in Venezuela. The company also saw an improvement in consulting and fluid services in the Eastern Hemisphere, particularly in continental Europe, Angola, Oman and Saudi Arabia.
Capital expenditures for the third quarter were reported to be $2.28 billion, compared with $2.08 in third-quarter 2013. Also during the period, the company reduced its existing loss contingency for the Deepwater Horizon blowout in April 2010 by $100 million and recorded $95 million for an expected insurance recovery related to the settlement.
"We also made progress on pricing on our stimulation contract renewals, and on cost recovery for ongoing contracts," said Dave Lesar, the president, chairman and chief executive officer of Halliburton, in a conference call. "Across key basins, we have negotiated higher prices that, at a minimum, should recover current and expected future cost inflation. We should begin to see the full impact of contract pricing as we move into 2015."
Halliburton's strong service intensity in North America is expected to continue for the remainder of the year, while revenue expansion in the Eastern Hemisphere is expected to average in the low double-digits by the end of the year. The company announced it will pursue a joint venture with Petrotech (Xinjiang) Engineering Company Limited to focus on hydraulic fracturing in China, and it will perform field services for Ecuador's Igapo project, which is managed by Ecuador's state-run oil company Petroamazonas.
"We expect to be awarded $1 billion of new work in Iraq," Lesar said. "And, consistent with previous years, we expect the fourth quarter in the Eastern Hemisphere to be our strongest quarter of the year, due to seasonal year-end software and equipment sales."
He added: "Over the last three years, we've delivered industry-leading, double-digit revenue growth in the Eastern Hemisphere, and as we look ahead to 2015, we anticipate the rate of growth my slightly moderate due to headwinds from ongoing geopolitical issues, as well as customer spending adjustments."
For more information, visit Industrial Info's Oil & Gas Production Database.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
