Major oilfield services provider
) reported slightly better-than-anticipated fourth quarter 2012
results, helped by robust performance from its international
business. Earnings per share from continuing operations came in
at 63 cents, beating the Zacks Consensus Estimate of 61 cents.
BAKER-HUGHES (BHI): Free Stock Analysis
HALLIBURTON CO (HAL): Free Stock Analysis
SCHLUMBERGER LT (SLB): Free Stock Analysis
WEATHERFORD INT (WFT): Free Stock Analysis
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Baker Hughes Inc.
), Halliburton stepped up as the second member of the 'big 4 oil
service companies' to post above consensus result. The largest
member of the oilfield services contingent -
) announced in line earnings, while
Weatherford International Limited
) is scheduled to report next month.
However, the company's per share profits came sharply lower than
the adjusted fourth quarter 2011 level of $1.00, amid sluggish
activity in its core North American operations.
Revenues of $7.3 billion were 3.2% greater than that achieved
during the last quarter of 2011 and also surpassed the Zacks
Consensus Estimate of $7.0 billion, as sales increased across the
company's business units.
During the quarter, North America accounted for approximately 51%
of Halliburton's total revenues and 43% of its operating income.
For its fiscal year ended Dec 31, 2012, Halliburton reported
income from continuing operations (excluding non-operating items)
of $2.99 per share, above the Zacks Consensus Estimate of $2.97
but lower than the 2011 adjusted earnings of $3.35 per share.
Revenues of $28.5 billion were 14.8% above the year ago period
and also managed to beat the Zacks Consensus Estimate of $28.2
Completion & Production:
Revenues for Halliburton's Completion and Production segment were
up by a marginal 0.2% year over year and 1.0% sequentially.
Segment operating income was $603 million, exhibiting a 2.0%
sequential increase but was down 44.5% from the year-earlier
In particular, operating income in North America nosedived - by
66.5% year over year and 17.8% sequentially - hamstrung by a
tight pricing environment for production enhancement services and
The dismal showing in North America - responsible for more than
half of the segment profits - was somewhat offset by higher
earnings in Argentina, improved activity in Angola, Norway, Saudi
Arabia and Australia, as well as a surge in direct sales in China
and Saudi Arabia.
Drilling & Evaluation:
Revenues from Halliburton's Drilling and Evaluation business were
4.8% above the third quarter levels and improved by a healthy
7.9% year over year to $3.0 billion.
The segment's operating income rose 12.6% from the September
quarter and a minor 0.8% from the year-ago period to $484
million. This was driven by higher activity in Canada and the
Gulf of Mexico and year-end software sales. Results were further
propelled by enhanced fluids activity levels in Mexico and
Colombia, higher demand for drilling services in the North Sea,
as well as improved levels of wireline profitability in Angola.
Halliburton's capital expenditure in the fourth quarter was $1.0
billion, bringing the full-year spending to $3.6 billion. As of
Dec 31, 2012, the company had approximately $2.5 billion in
cash/cash equivalents and $4.8 billion in long-term debt,
representing a debt-to-capitalization ratio of 23.4%.
As of now, Halliburton, Schlumberger and Weatherford are all
Zacks Rank #3 (Hold) stocks, while Baker Hughes retains a Zacks
Rank #5 (Strong Sell).