Major oilfield services provider,
), reported better-than-anticipated second-quarter 2013 results -
the fifth outperformance in the last 6 quarters - helped by
robust growth in its international business. Earnings per share
from continuing operations came in at 73 cents, beating the Zacks
Consensus Estimate of 72 cents.
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), Halliburton stepped up as the second member of the 'big 4 oil
service companies' to post above consensus result. However,
Baker Hughes Inc.
) failed to match the earnings estimate. The remaining member of
Weatherford International Ltd.
), is scheduled to report next week.
However, the company's per share profits fell below than the
second-quarter 2012 level of 79 cents, amid sluggish activity in
its core North American operations.
Revenues of $7,317.0 million were 1.2% higher than that achieved
during the second quarter of 2012 and also surpassed the Zacks
Consensus Estimate of $ 7,252.0 million.
During the quarter, North America accounted for approximately
52.0% of Halliburton's total revenue and 58.1% of its operating
Completion & Production:
Revenues for Halliburton's Completion and Production segment came
in at $ 4,363.0 million, representing a year over year decrease
of 2.2%. However, the figure was up by 6.4% sequentially.
Increase in activity in the land market of the U.S. along with
good result from the international market aided the sequential
Operating income for the unit came in at $732.0 million, down
19.9% from the year-earlier level, with North American
profitability plunging 25.2%. The poor performance was owing to
the weak results from most of the regions, especially North
However, the segment's operating income managed to exhibit a
19.0% sequential increase. Decrease in guar costs along with the
hike in demand for production enhancement services in the land
market of U.S aided the result.
Drilling & Evaluation:
Revenues from Halliburton's Drilling and Evaluation business were
6.5% above the second-quarter 2012 level and also improved by
2.8% sequentially to $2,954.0 million. The results were aided by
Eastern Hemisphere's increased drilling activity.
Income in the Drilling and Evaluation unit increased 5.6% from
the year-ago period and 2.0% sequentially owing to robust
drilling activities in international regions.
Dividend and Share Repurchase Program
Today Halliburton declared that it has purchased roughly 23
million common shares during the quarter, for a total
consideration of $1.0 billion.
Moreover, on Jul 18, 2013, the board of directors of Halliburton
has given authorization to increase its share repurchase capacity
to $5.0 billion from $0.7 billion in 2006.
Today, Halliburton also announced its third-quarter 2013 dividend
payment of $12.5 cents. The dividend will be paid on Sep 25,
2013, to shareholders of record as of Sep 4, 2013.
Halliburton's capital expenditure in the second quarter was
$711.0 million. As of Jun 30, 2013, the company had approximately
$1,412.0 million in cash/cash equivalents and $4,820.0 million in
long-term debt, representing a debt-to-capitalization ratio of
As of now, Halliburton, carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.