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Released October 20, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Oilfield services giant Halliburton Company (NYSE:HAL) (Houston, Texas) sent some good vibes through the domestic Oil & Gas Industry when it reported a North American sales boost for third-quarter 2016 from the previous quarter--its first since the downturn in commodity prices began in late 2014. Sales in the U.S. and Canada had plunged by more than two-thirds during that period as customers cut spending, but of late Halliburton has been picking up business from oil producers that are beginning to ramp up operations. Industrial Info is tracking $7.18 billion in global projects involving Halliburton.
Notably, Halliburton is seeing an improvement in its U.S. rig count; just last month, representatives said at the Barclays CEO Energy-Power Conference that it had been down 79% since late 2014. But they also said the market was expected to recover, with 20 million barrels per day of new supply required through 2020, a statistic that was reaffirmed in a third-quarter 2016 earnings conference call.
Still, much of the improvement came from long-term cost cuts, stronger equipment utilization and a hefty tax benefit. In fact, sales for the third quarter stood at $3.83 billion, down 31.33% from the same period in 2015. But the slim $7 million in profits was a few notches better than third-quarter 2015's $53 million loss, and there's no mistaking that third-quarter 2016's numbers represent a turnaround from earlier in the year, when Halliburton was forced to cut its work force significantly. For more information, see April 26, 2016, article - Halliburton Cuts 6,000 Jobs in First Quarter Amid Oil Price Pangs.
In line with the company's cost-cutting agenda, cumulative capital expenditures for the first three quarters of 2016 were reported to be $625 million, compared with $1.75 billion in the same period last year.
"I am pleased with our third-quarter results given the devastation our industry has faced over the last two years," said Dave Lesar, the chairman and chief executive officer of Halliburton, in the conference call. "These results reflect the hard work and determination of our organization. While the recent cycle has provided its fair share of challenges, we out-executed even against the very high expectations we place on our organization."
Nonetheless, executives in the call were cautious about the company's fourth-quarter expectations, citing the usual holiday and seasonal weather-related downtimes. Capital expenditures for the year still are expected to be roughly $850 million.
One of the largest active projects involving Halliburton is Wintershall Norge AS' (Stavanger, Norway) $1.22 billion subsea equipment installation at the Maria field in the North Sea, offshore Norway, accompanied by a $300 million crude-oil pipeline and a $61.15 million water-injection pipeline. The project is expected to initially have two production wells and a water-injection well. The Maria discovery is expected to produce about 130 million barrels of oil and about 2 billion standard cubic meters of natural gas. Halliburton's Norwegian subsidiary is serving as a contractor, along with several other firms from the region. For more details, see Industrial Info's project reports on the subsea equipment, the crude-oil pipeline and the water-injection pipeline.
Next year, Wintershall Norge expects to begin $175 million in drilling for six production wells at the platform. Odfjell Drilling also is serving as a contractor, and is expected to employ its Deepsea Stavanger semi-submersible drilling rig. For more information, see Industrial Info's project report.
In the U.S., Halliburton is proposing a $20 million expansion of a barite mine near Carlin, Nevada. If approved, the extension would add eight years of mine life to the 1,000-ton-per-day facility. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Notably, Halliburton is seeing an improvement in its U.S. rig count; just last month, representatives said at the Barclays CEO Energy-Power Conference that it had been down 79% since late 2014. But they also said the market was expected to recover, with 20 million barrels per day of new supply required through 2020, a statistic that was reaffirmed in a third-quarter 2016 earnings conference call.
Still, much of the improvement came from long-term cost cuts, stronger equipment utilization and a hefty tax benefit. In fact, sales for the third quarter stood at $3.83 billion, down 31.33% from the same period in 2015. But the slim $7 million in profits was a few notches better than third-quarter 2015's $53 million loss, and there's no mistaking that third-quarter 2016's numbers represent a turnaround from earlier in the year, when Halliburton was forced to cut its work force significantly. For more information, see April 26, 2016, article - Halliburton Cuts 6,000 Jobs in First Quarter Amid Oil Price Pangs.
In line with the company's cost-cutting agenda, cumulative capital expenditures for the first three quarters of 2016 were reported to be $625 million, compared with $1.75 billion in the same period last year.
"I am pleased with our third-quarter results given the devastation our industry has faced over the last two years," said Dave Lesar, the chairman and chief executive officer of Halliburton, in the conference call. "These results reflect the hard work and determination of our organization. While the recent cycle has provided its fair share of challenges, we out-executed even against the very high expectations we place on our organization."
Nonetheless, executives in the call were cautious about the company's fourth-quarter expectations, citing the usual holiday and seasonal weather-related downtimes. Capital expenditures for the year still are expected to be roughly $850 million.
One of the largest active projects involving Halliburton is Wintershall Norge AS' (Stavanger, Norway) $1.22 billion subsea equipment installation at the Maria field in the North Sea, offshore Norway, accompanied by a $300 million crude-oil pipeline and a $61.15 million water-injection pipeline. The project is expected to initially have two production wells and a water-injection well. The Maria discovery is expected to produce about 130 million barrels of oil and about 2 billion standard cubic meters of natural gas. Halliburton's Norwegian subsidiary is serving as a contractor, along with several other firms from the region. For more details, see Industrial Info's project reports on the subsea equipment, the crude-oil pipeline and the water-injection pipeline.
Next year, Wintershall Norge expects to begin $175 million in drilling for six production wells at the platform. Odfjell Drilling also is serving as a contractor, and is expected to employ its Deepsea Stavanger semi-submersible drilling rig. For more information, see Industrial Info's project report.
In the U.S., Halliburton is proposing a $20 million expansion of a barite mine near Carlin, Nevada. If approved, the extension would add eight years of mine life to the 1,000-ton-per-day facility. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
