Halliburton (HAL) Tops Q4 EPS by 9c

Halliburton (NYSE: HAL) reported Q4 EPS of $1.19, $0.09 better than the analyst estimate of $1.10. Revenue for the quarter came in at $8.8 billion versus the consensus estimate of $8.78 billion.

“I am very pleased with our results for the fourth quarter and for the full year,” commented Dave Lesar, chairman and chief executive officer.

“For the full year 2014, Halliburton reported record revenue and operating income for the total company, as well as revenue records for both divisions and 12 out of 13 product lines. Compared to our primary peers, the company once again delivered industry-leading total company revenue growth and returns in 2014.

“North America delivered a record year, with 16% revenue growth and 23% adjusted operating income growth compared to 2013. The Eastern Hemisphere also had a record year, with revenue and adjusted operating income growth of 10% and 12%, respectively.

“For the fourth quarter, total company revenue of $8.8 billion was a record quarter, with revenue records for both divisions and our Middle East/Asia region setting a new record for both revenue and adjusted operating income.

“North America revenue was flat sequentially, despite the seasonal impact from weather and holiday downtime. Margins benefited in the fourth quarter from cost efficiencies related to the continued roll-out of our strategic initiatives, as well as recent enhancements to our logistics network.

“In the Eastern Hemisphere, we experienced a modest level of sequential revenue growth which resulted in a new quarterly record, despite headwinds in our Europe/Africa/CIS region.

“In the Middle East/Asia region, revenue increased by 10% compared to the third quarter, and adjusted fourth quarter margins came in just under 21%. Year-end software and equipment sales led the improvement for the quarter, along with increased integrated project activity in Saudi Arabia, Iraq, India and Indonesia.

”In Europe/Africa/CIS, revenue and adjusted operating income declined 8% and 35%, respectively, compared to the third quarter. This resulted from activity declines in the North Sea, Russia, and Angola, as well as currency weakness in Russia.

“In Latin America, revenue increased 3% sequentially, while adjusted operating income declined 4% compared to the third quarter. Operating income was negatively impacted during the fourth quarter from mobilization costs in Brazil and budget constraints affecting consulting and stimulation activity in Mexico.

“We delivered an excellent 2014, but it is clear that 2015 will be a challenging year for the industry. As a result of the weakening outlook, during the fourth quarter of 2014 we took a $129 million restructuring charge to temper the impact of anticipated activity declines. Halliburton has successfully weathered multiple industry cycles. We are confident that we have the right people, technology, and strategies in place to outperform throughout this cycle too, and emerge as a stronger company,” concluded Lesar.

For earnings history and earnings-related data on Halliburton (HAL) click here.

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