Oct. 18 (Bloomberg) -- Halliburton Co., the world’s second- largest oilfield-services provider, declined after profit fell in all regions outside of North America, disappointing investors’ expectations of a bigger improvement in global business.
Halliburton, which reached a two-year high last week, fell $1.37, or 3.8 percent, to $34.45 at 9:47 a.m. in New York. Operating income in the third quarter dropped 21 percent in Latin America from a year earlier. The decline was 31 percent in a region that includes Europe, Africa and the former Soviet Union, and 52 percent in the Middle East and Asia.
“We need to see a more broad-based improvement in earnings outside of North America to show that the oil-service sector is rebounding as expected,” said Brian Youngberg, an analyst at Edward Jones in St. Louis who has a “buy” rating on Halliburton shares and owns none.
Halliburton Co.'s third-quarter earnings doubled as the oil-field-services company saw its North American markets continue to rebound.
However, the result missed analysts' expectations and shares were down 82 cents, or 2.29%, at $35 in premarket trading. The stock through Friday's close was up 19% this year.
Despite doubling last year's third-quarter profit, "Halliburton's stock was basically in a no-win situation with the whisper numbers moving higher by the day last week," Tudor, Pickering, Holt ...
Third-quarter net income climbed to $544 million, or 60 cents a share, from $262 million, or 29 cents, a year earlier, Houston-based Halliburton said today in a statement. Excluding such items as a tax gain related to discontinued operations, profit was 58 cents a share, 2 cents higher than the average of 33 analysts’ estimates compiled by Bloomberg.
“The expectations were just getting really ramped up at the end of last week,” said Roger Read, an analyst at Natixis Bleichroeder in Houston who has a “buy” rating on Halliburton and owns about 500 shares. “It’s a beat, it’s a good number, but I think there were people that were looking for something with a six on it. They didn’t get that.”
Onshore Rigs
Revenue surged 30 percent from a year earlier to $4.67 billion in the third quarter. Operating income in North America rose to $573 million from $37 million in the year-earlier quarter. Onshore projects more than made up for a slowdown in the Gulf of Mexico
The number of active U.S. onshore rigs averaged 1,587 in the third quarter, a 71 percent increase from a year earlier, as energy companies looked for alternatives to offshore drilling. Halliburton is one of the largest providers in North America of pressure pumping, which uses materials such as water and sand to fracture rocks and help gas or oil to flow. Producers use this technology to drill in shale formations.
“It’s just a lot of demand for pressure pumping, and Halliburton’s in the catbird seat,” John Lawrence, a vice president at Tudor Pickering Holt & Co. in Houston, said before the earnings announcement. Lawrence said his firm has a “buy” rating on Halliburton shares and that he owns none.
Halliburton Chief Executive Officer David Lesar said in the statement that a shift to oil and liquids-rich basins in North America will be a catalyst for work through 2011 even as so- called dry gas activity falls. Lesar said he sees higher margins internationally from increased activity as the industry heads into 2011.
Adding Workers
The company added about 2,000 workers in the third quarter, Cathy Mann, a Halliburton spokeswoman, said in an e-mail today. That comes after Halliburton added 1,700 jobs in the second quarter of this year and 1,200 in the first quarter.
The Gulf spill occurred after an April 20 explosion at the Deepwater Horizon drilling rig, which Transocean Ltd. leased to London-based BP Plc. Halliburton provided cementing services on the well BP was drilling. The company has said it performed work at the site in accordance with BP’s specifications, and that its contract provides security for claims and expenses related to this type of situation.
The U.S. instituted a moratorium on deep-water drilling following the Gulf spill. Interior Secretary Ken Salazar lifted the ban this month as the government put in place new safeguards meant to prevent a similar event.
Gulf Effects
Chief Financial Officer Mark McCollum said in September that the impact of the drilling suspension would be at the low end of a July estimate of 5 cents to 8 cents per share in the quarter. The company has said it derived about 6 percent of its total revenue from the Gulf in this year’s first half.
McCollum also said last month that Halliburton would have a per-share charge in the quarter of 4 cents to 6 cents related to an oil and gas project in Bangladesh. Halliburton decided more investment to enhance recovery wasn’t worth returns the company saw for the project, McCollum said.
Halliburton also said it purchased 3.5 million shares of common stock for $114 million in the third quarter, leaving about $1.7 billion remaining under a share repurchase program.
Schlumberger Ltd., based in Houston and Paris, is the world’s largest oilfield-services contractor.
Chile Miners Seek Deals for Stories
The 33 miners rescued after more than two months underground decided on food rationing and other survival strategies democratically and also relied heavily on leaders besides their widely praised shift foreman.
Reform Rules Divide EU Members
EU governments were at odds over new rules to help prevent a repeat of the fiscal problems facing a number of members, as finance ministers met to discuss the changes.
U.K. Readies Cuts in Defense Outlays
The U.K., which is readying its scalpel for aggressive spending cuts, is planning its most sensitive incision into its already stretched military, shaving around 8% off its $59 billion military budget over the next five years .
FIFA Probes Bribery Allegations
FIFA, soccer's world governing body, is investigating an incident in which two members of its executive committee allegedly sought payments in exchange for support when the organization selects the locations for the 2018 and 2022 World Cup.French Minister Warns of Terror Threat
French Interior Minister Brice Hortefeux said France has received new warnings of a terror threat in Europe, "notably France," from Saudi intelligence services.
Foreigners Barred from Myanmar Poll
Myanmar's Election Commission reiterated that it was "not necessary" for foreign observers to monitor the country's upcoming election, which will be the military-ruled country's first in 20 years.
China's Xi Appointed to Key Position
Chinese Vice President Xi Jinping was appointed to a senior military position, a move seen as solidifying his role as eventual successor of China President Hu Jintao.Global Pirate Attacks Fall
Pirates are increasingly attacking ships in the South China Sea and Indonesian waters, but fewer incidents off Somalia have caused the world-wide total to fall slightly this year.
Somali Pirates Abduct 43 Sailors off Kenya
Merkel: Multiculturalism a 'Total Failure'
German Chancellor Angela Merkel joined her country's increasingly acrimonious debate about immigration over the weekend, declaring that multiculturalism in Germany had been a "total failure."
Zambians Riot After Miners Are Shot
Zambian locals rioted and blocked a road leading to Chinese-owned Collum Coal Mine to protest the shooting of at least 11 miners, allegedly by Chinese supervisors during a protest over low wages, police officials said.
Turkish Party Recasts Image
The leader of Turkey's main secularist opposition is tearing up the rule book of the party that Ataturk built, as he tries to build a credible alternative to the government of Prime Minister Recep Tayyip Erdogan.
Talks on Shalit Swap Deal Resume
Israel's prime minister confirmed that negotiations with the Palestinians about a much-anticipated swap for a captured Israeli soldier have resumed.
Paris Talks Postponed
Gunmen Kill 21 in Karachi
Gunmen have killed at least 21 people in Karachi since Saturday, raising tensions in Pakistan's largest city as voters cast ballots Sunday for a replacement for a provincial lawmaker murdered in August.
Map: Regional Violence
Ten Die at Indian Temple Stampede
An argument over sacrificing goats during a Hindu festival triggered a stampede that killed 10 people in a packed temple in northern India.
Pope Gives Australia Its First Saint
Pope Benedict XVI gave Australia its first saint on Sunday, canonizing a 19th-century nun and also declaring five other saints in a Mass attended by tens of thousands of people.French Unions Threaten New Actions
Truck-driver unions threatened to block some of France's main roads this week and unite with oil-refinery workers who have halted fuel production, a move that would intensify nationwide protests against President Nicolas Sarkozy's proposed pension overhaul.
Czech Opposition Makes GainsThe opposition Social Democrats topped the polls in the first round of elections for Parliament's upper house and made gains in nationwide local elections as voters appeared to punish the center-right government for its planned austerity measures.
FIFA, soccer's world governing body, is investigating an incident in which two members of its executive committee allegedly sought payments in exchange for support when the organization selects the locations for the 2018 and 2022 World Cup.
Reporters for the Sunday Times of London posed as lobbyists for the U.S. bid and allegedly caught Amos Adamu, a Nigerian member of FIFA's 24-member executive committee, requesting some $800,000 of support for a project in exchange for his vote. Reporters also allegedly caught Reynald Temarii of the Oceania Football Confederation attempting to gain more than $2 million.
The race to host the 2018 World Cup was thrown into chaos after allegations that two FIFA members offered to sell their votes. Video courtesy of Sky News.
In a statement Sunday, FIFA said the organization and its ethics committee "have closely monitored the bidding process for the 2018 and 2022 FIFA World Cups and will continue to do so. FIFA has already requested to receive all of the information and documents related to this matter, and are awaiting to receive this material. In any case, FIFA will immediately analyse the material available and only once this analysis has concluded will FIFA be able to decide on any potential next steps."
The allegations come at a sensitive time, as organizers of the U.S. bid are planning a final push before the vote on Dec. 2 and plan to meet with numerous members of the committee in the coming weeks. The U.S. is competing with Japan, Korea, Qatar and Australia for the 2022 World Cup. The U.S. pulled out of the contest for the 2018 World Cup Friday. That event will be held in Europe. Russia, England, Holland-Belgium, and Spain-Portugal are competing for the right to host the tournament.
"The Sunday Times report today makes it clear, but it bears emphasis and repeating, that the USA Bid Committee had no involvement with any aspect of the reporting that resulted in this story. This is a matter that is totally under the governance of FIFA, and therefore we will have no further comment," said Sunil Gulati, chairman of the USA Bid Committee and president of U.S. Soccer.
In a statement, the Oceania Football Confederation said "OFC is aware of the story that appeared in The Sunday Times in England. As such, OFC is currently looking into the matter."
Video on the Sunday Times website allegedly shows Mr. Amadu telling an undercover reporter that he wanted to build four artificial soccer fields at a cost of $200,000 each and that the money could be paid to him "directly." When the reporter asked whether the payment would help Mr. Amadu make his decision in favor of the U.S. bid in some way, he responded: "Obviously it will have an effect. Of course it will have an effect. It will have an effect. Because certainly if if you are to invest in that, that means you also want the vote."
Amos Adamu, a member of FIFA's executive committee, is a focus of a probe.
In a separate video, Mr. Temarii, a former French soccer player, was allegedly shown explaining that he was looking for investment to fund a sports academy in Auckland, New Zealand. "Talking about your proposal, for sure, it's interesting," Mr. Temarii said. "For me I just tell you that when the people came to see me, I usually say: 'Okay, what will be the impact of your bid in my region?' If there's something concrete on the table, then it's interesting to discuss. If not, forget it, we have something else to do and so on and so on."
He also said: "For me, this is the basic approach when I talk with someone who wishes to get my vote."
Mr. Temarii was also apparently shown listing his arguments for backing the U.S. as a second-preference at the Dec. 2 vote in Zurich, ending with: "And then, the third reason we could vote for [the] States is because this kind of support coming from a private company would be useful, helpful for us."
The video also showed him explaining that the offer of financial assistance could not be linked to his vote. He said: "We cannot have a link between your support and my vote. Impossible. That's why I cannot tell you that. But just keep in mind, it could be helpful.
Halliburton’s Shares Fall as Overseas Work Lags North America
Oct. 18 (Bloomberg) -- Halliburton Co., the world’s second- largest oilfield-services provider, declined after profit fell in all regions outside of North America, disappointing investors’ expectations of a bigger improvement in global business.
Halliburton, which reached a two-year high last week, fell $1.37, or 3.8 percent, to $34.45 at 9:47 a.m. in New York. Operating income in the third quarter dropped 21 percent in Latin America from a year earlier. The decline was 31 percent in a region that includes Europe, Africa and the former Soviet Union, and 52 percent in the Middle East and Asia.
“We need to see a more broad-based improvement in earnings outside of North America to show that the oil-service sector is rebounding as expected,” said Brian Youngberg, an analyst at Edward Jones in St. Louis who has a “buy” rating on Halliburton shares and owns none.
Third-quarter net income climbed to $544 million, or 60 cents a share, from $262 million, or 29 cents, a year earlier, Houston-based Halliburton said today in a statement. Excluding such items as a tax gain related to discontinued operations, profit was 58 cents a share, 2 cents higher than the average of 33 analysts’ estimates compiled by Bloomberg.
“The expectations were just getting really ramped up at the end of last week,” said Roger Read, an analyst at Natixis Bleichroeder in Houston who has a “buy” rating on Halliburton and owns about 500 shares. “It’s a beat, it’s a good number, but I think there were people that were looking for something with a six on it. They didn’t get that.”
Onshore Rigs
Revenue surged 30 percent from a year earlier to $4.67 billion in the third quarter. Operating income in North America rose to $573 million from $37 million in the year-earlier quarter. Onshore projects more than made up for a slowdown in the Gulf of Mexico
The number of active U.S. onshore rigs averaged 1,587 in the third quarter, a 71 percent increase from a year earlier, as energy companies looked for alternatives to offshore drilling. Halliburton is one of the largest providers in North America of pressure pumping, which uses materials such as water and sand to fracture rocks and help gas or oil to flow. Producers use this technology to drill in shale formations.
“It’s just a lot of demand for pressure pumping, and Halliburton’s in the catbird seat,” John Lawrence, a vice president at Tudor Pickering Holt & Co. in Houston, said before the earnings announcement. Lawrence said his firm has a “buy” rating on Halliburton shares and that he owns none.
Halliburton Chief Executive Officer David Lesar said in the statement that a shift to oil and liquids-rich basins in North America will be a catalyst for work through 2011 even as so- called dry gas activity falls. Lesar said he sees higher margins internationally from increased activity as the industry heads into 2011.
Adding Workers
The company added about 2,000 workers in the third quarter, Cathy Mann, a Halliburton spokeswoman, said in an e-mail today. That comes after Halliburton added 1,700 jobs in the second quarter of this year and 1,200 in the first quarter.
The Gulf spill occurred after an April 20 explosion at the Deepwater Horizon drilling rig, which Transocean Ltd. leased to London-based BP Plc. Halliburton provided cementing services on the well BP was drilling. The company has said it performed work at the site in accordance with BP’s specifications, and that its contract provides security for claims and expenses related to this type of situation.
The U.S. instituted a moratorium on deep-water drilling following the Gulf spill. Interior Secretary Ken Salazar lifted the ban this month as the government put in place new safeguards meant to prevent a similar event.
Gulf Effects
Chief Financial Officer Mark McCollum said in September that the impact of the drilling suspension would be at the low end of a July estimate of 5 cents to 8 cents per share in the quarter. The company has said it derived about 6 percent of its total revenue from the Gulf in this year’s first half.
McCollum also said last month that Halliburton would have a per-share charge in the quarter of 4 cents to 6 cents related to an oil and gas project in Bangladesh. Halliburton decided more investment to enhance recovery wasn’t worth returns the company saw for the project, McCollum said.
Halliburton also said it purchased 3.5 million shares of common stock for $114 million in the third quarter, leaving about $1.7 billion remaining under a share repurchase program.
Schlumberger Ltd., based in Houston and Paris, is the world’s largest oilfield-services contractor.
NEW YORK (MarketWatch) — Halliburton Co.’s third-quarter net income doubled, the energy-services giant reported Monday, as North American activity offset a slowdown tied to the deepwater-drilling moratorium in the Gulf of Mexico.
The Houston-based company (HAL 34.00, -1.82, -5.08%) said earnings rose to $544 million, or 60 cents a share, up sharply from $262 million, or 29 cents, earned in the year-ago third quarter.
HAL 34.00, -1.82, -5.08%
OSX 208.96, -0.22, -0.11%
20%0%-20%-40%
FAJA
Halliburton shares vs. Oil Service Index, year to date.
The latest quarter included one-time charges of 5 cents a share and a gain from discontinued operations of 7 cents a share that Halliburton said was related to a U.S. tax matter.
Quarterly income from continuing operations rose to 53 cents a share, from the prior year’s 29 cents a share.
Revenue increased to $4.67 billion, from $3.59 billion.
Analysts had expected Halliburton to earn 56 cents a share on revenue of $4.63 billion, according to a consensus of surveys compiled by FactSet Research.
