Halliburton profit beats estimates on international business

HOUSTON, Mon Jul 23, 2012 – Halliburton Co., the world’s second-largest oilfield services company, reported a better-than-expected quarterly profit on higher drilling activity in its international markets.
Halliburton’s North American profit margins were hit by a shortage of guar beans, a key ingredient in fracking fluid, and a shift to U.S. oil basins from natural gas-rich areas.
The company said it expects guar cost and equipment relocation issues to subside in 2013.
Halliburton, which earned more than three-quarters of its 2011 income in North America, said operating income from the region decreased 19 percent sequentially.
Operating income, however, rose in the company’s international markets including Latin America, Europe, Africa, the Middle East and Asia.
Halliburton is well-positioned to capture market share in expanding international unconventional basins, Chief Executive David Lesar said.
Schlumberger NV (SLB.N) and Baker Hughes Inc. reported higher-than-forecast profits on Friday, lifted by strength outside North America.
Income from continuing operations rose to $745 million, or 80 cents per share, in the second quarter, from $739 million, or 80 cents per share, a year earlier.
Revenue rose 22 percent to $7.2 billion.
Analysts on average had expected a profit of 75 cents on revenue of $6.96 billion, according to Thomson Reuters I/B/E/S.

Halliburton first quarter profits rise on strong North America sales

HOUSTON, Wed Apr 18, 2012 – Halliburton Co., the world’s second-largest oilfield services company, on Wednesday reported higher quarterly profits as North American sales reached a record high, lifting its shares in premarket trading.

First-quarter profit rose to $627 million, or 68 cents per share, from $511 million, or 56 cents per share, a year ago.

Excluding one-time items such as a $300 million charge for estimated losses from the BP Plc. Gulf of Mexico oil spill two years ago, Halliburton’s earnings per share of 89 cents topped the average analyst estimate of 85 cents, according to Thomson Reuters I/B/E/S.

Chief Executive Officer Dave Lesar said the record North American revenue of $4.2 billion came as new oil drilling activity in the United States helped offset a drop in natural gas drilling.

But Lesar warned that weak U.S. natural gas prices, which have fallen to their lowest level in a decade, and the disruptions caused by shifting supply chains, would contribute to lower margins in the region in the second quarter.

Halliburton is heavily exposed to the U.S. market relative to larger rival Schlumberger, which earned about two-fifths of its 2011 income in North America, compared with more than three-quarters for Halliburton.

Halliburton is the market leader in pressure pumping, used in hydraulic fracturing to extract oil and gas from shale. New technology has opened up new sources that are likely to keep prices low for years.

Its revenue rose 30 percent to $6.9 billion.

Halliburton’s shares rose 1.7 percent in premarket trading to $33.20.

BP sues Halliburton over $42 billion gulf oil spill bill

HOUSTON ― BP has called on contractor Halliburton to pay all costs and expenses it incurred to clean up the 2010 Gulf of Mexico oil spill, which the oil major previously put at around $42 billion.

Halliburton cemented the failed well that caused the United State’s biggest offshore oil spill.

In a U.S. court filing, BP said it was suing to recover costs and expenses from cleaning up the oil spill, lost profits, and “all other costs and damages incurred by BP related to the Deepwater Horizon incident and resulting oil spill.”

It did not specify an amount and it was not clear how the latest suit differed from a previous one brought last year. A BP spokesman declined to put a figure on the costs sought in the latest filing, but said the “documents speak for themselves.”

In April 2011, BP asked a court to award it damages “equal to, or in the alternative proportional to Halliburton’s fault,” to cover clean up costs and government fines BP might faces.

The company previously said it expected the costs of sealing the blown-out well, cleaning up the damage, compensating those affected and government fines to reach $42 billion.

BP has spent $14 billion in the Gulf Coast region in its response to the spill and set aside $20 billion for economic claims and natural resource restoration, according to its website.

Halliburton officials were not immediately available for comment.

The explosion on the Deepwater Horizon rig in April 2010, which killed 11 workers and spewed more than 4 million barrels of oil into the Gulf, has sparked a slew of lawsuits and federal citations against the companies involved.

BP has already cut deals with its two partners in the doomed Macondo well, Anadarko and Mitsui, which at first refuted their responsibility to contribute to oil spill bill, citing BP’s negligence.

Last month, Cameron International Corp. agreed a $250 million settlement with BP to help pay for costs associated with the Gulf of Mexico oil spill, raising hopes that deals between the British oil firm and two other contractors could follow.

Yet settlement agreements with two remaining parties, Halliburton and Transocean, have to date proved elusive.

Transocean, the owner and operator of the Deepwater Horizon rig, and Halliburton, which supplied cement to cap the well, are both being sued by BP to share the cost of the spill and cleanup, while the two have launched lawsuits of their own.

BP says Halliburton destroyed Gulf of Mexico spill evidence

HOUSTON ― BP Plc. accused Halliburton Co. of destroying evidence that the oilfield services company did inadequate cement work on the Gulf of Mexico oil well that blew out last year, and asked a federal judge to punish Halliburton.

The accusation, in a BP court filing, raises the stakes ahead of a trial, expected in late February, to assign blame and damages for the April 2010 blowout of the Macondo well, which triggered the largest offshore oil spill in U.S. history.

Citing recent depositions and Halliburton’s own documents, BP said Halliburton “intentionally” destroyed the results of slurry testing for the well, in part to “eliminate any risk that this evidence would be used against it at trial.”

The oil company also said Halliburton appeared to have lost computer evidence showing how the cement performed, with Halliburton maintaining that the information is simply “gone.”

BP asked U.S. District Judge Carl Barbier in New Orleans, who oversees spill litigation, to sanction Halliburton by ruling that Halliburton’s slurry design was “unstable,” a finding of fact that could be used at trial.

It also asked Barbier to direct that forensic experts be hired to find the missing computer data.

“These remedies are amply warranted in law and by principles of fair play, and they are essential to ensure this court’s trial is not tainted by Halliburton’s misconduct,” BP said in the filing.

Halliburton is the world’s second-largest oilfield services provider. A spokeswoman, Beverly Blohm Stafford, said the Houston-based company is reviewing BP’s filing.

“We believe that the conclusion that BP is asking the court to draw is without merit and we look forward to contesting their motion in court,” she said.

The Deepwater Horizon drilling rig’s explosion on April 20, 2010, caused 11 deaths, and brought tens of billions of dollars of lawsuits. Halliburton has accused BP of fraud and defamation, among other claims.

Shale gas helps Halliburton profit beat Wall Street forecasts

Halliburton Co., the world’s second-largest oilfield services company, posted a higher-than-expected quarterly profit as more drillers tapped its expertise in extracting gas from U.S. shale rock.

Despite low natural gas prices, demand for shale energy continues to grow across the United States amid calls for energy independence and a push for cheap supply from the chemical and transportation sectors.

Halliburton shares fell 0.7 percent in premarket trading. Dahlman Rose & Co analyst James Crandell said the strong earnings likely will have “neutral implications” for the shares Monday.

Third-quarter net profit climbed to $683 million, or 74 cents per share, from $544 million, or 60 cents per share, a year earlier.

Excluding one-time items, Halliburton earned 94 cents per share, topping analysts’ average estimate of 92 cents, according to Thomson Reuters I/B/E/S.

Revenue rose 40 percent to $6.55 billion. Analysts had expected $6.39 billion.

Producers are plowing billions of dollars into developing U.S. oil shale fields, tightening the market for equipment and allowing the services companies to maintain higher prices.

Many analysts expect the North American shale boom to last at least through 2012, even with the weak American economy.

“Despite short-term macroeconomic concerns, I continue to believe in the long-term prospects for our business,” Halliburton Chief Executive Dave Lesar said in a statement.

The company said delays in operations in Iraq and an operational shutdown in Libya during the third quarter hurt results.

Halliburton said profit from operations outside the United States “recovered at the rate we expected” during the quarter.

Three rigs did start operating in Iraq toward the end of the quarter, however. And in Libya, where rebels have ousted ruler Muammar Gaddafi, the company is assessing whether to reopen.

Halliburton has put behind it a major liability attached to former unit KBR Inc (KBR.N), which just settled a five-year dispute over failed bolts on subsea oilfield flow lines off Brazil for $200 million.

Shares of Houston-based Halliburton fell 0.7 percent to $27.48 in premarket trading. The stock has dropped 8.3 percent this year.

Halliburton profit jumps on strong U.S. demand in oilfield services

NEW YORK ― Halliburton Co., the world’s second-largest oilfield services company, reported a forecast-topping 54 percent jump in quarterly profit on Monday as a U.S. drilling boom showed no signs of cooling off.

High oil prices have prompted energy producers to plunge billions of dollars into developing liquids-rich fields such as Texas’ Eagle Ford shale rather than gas fields, a move that allowed Halliburton to push through price increases in the quarter.

That boom was likely to last beyond this year, the company said.

“Strong crude prices, operators’ improved cash flows combined with their ability to access capital, and the increasingly liquids-rich nature of the United States land market, give us continued confidence in the strength of North America through 2012,” Chief Executive and Chairman Dave Lesar said in a statement.

Second-quarter net profit climbed to $739 million, or 80 cents per share, from $480 million, or 53 cents per share, a year earlier.

Excluding one-time items, the company earned 81 cents per share, topping the 74 cents per share that analysts had on average forecast, according to Thomson Reuters I/B/E/S.

Revenue rose 35 percent to $5.9 billion and came in above the average analyst forecast of $5.71 billion.

Shares in Halliburton were up 17 cents at $53.25 per share in premarket trading.