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Halliburton 2014 revenue up USD 3.5bn compared to 2013

21st January 2015

Total revenue was USD 32.9bn for the full year 2014, an increase of USD 3.5bn, or 12 per cent, from 2013

Total revenue was USD 32.9bn for the full year 2014, an increase of USD 3.5bn, or 12 per cent, from 2013
'We delivered an excellent 2014, but it is clear that 2015 will be a challenging year for the industry' - Halliburton CEO

Halliburton Company has announced that income from continuing operations for the fourth quarter of 2014 was USD 1.0bn, or USD 1.19 per diluted share, excluding restructuring charges of USD 90m, after-tax, or USD 0.11 per diluted share, and Baker Hughes acquisition-related costs of USD 19m, after-tax, or USD 0.02 per diluted share.

This compares to income from continuing operations for the third quarter of 2014 of USD 1.0bn, or USD 1.19 per diluted share, excluding Macondo-related items.

Reported income from continuing operations for the fourth quarter of 2014 was USD 900m, or USD 1.06 per diluted share. Reported income from continuing operations for the third quarter of 2014 was USD 1.1bn, or USD 1.33 per diluted share.

Total revenue in the fourth quarter of 2014 was USD 8.8bn, compared to USD 8.7bn in the third quarter of 2014. Adjusted operating income was USD 1.4bn in both the fourth and third quarters of 2014. Reported operating income was USD 1.3bn in the fourth quarter of 2014 and USD 1.6bn in the third quarter of 2014.

Total revenue was USD 32.9bn for the full year 2014, an increase of USD 3.5bn, or 12 per cent, from 2013. Total operating income was USD 5.1bn for 2014, compared to USD 3.1bn for 2013, which increased primarily due to increased stimulation activity in the United States land market, and Macondo-related items.

Adjusted income from continuing operations for the full year 2014 was USD 3.4bn, or USD 4.02 per diluted share. This compares to adjusted income from continuing operations for the full year 2013 of USD 2.8bn, or USD 3.15 per diluted share. Reported income from continuing operations for the full year 2014 was USD 3.4bn, or USD 4.03 per diluted share, compared to USD 2.1bn, or USD 2.33 per diluted share, for the full year 2013.

“I am very pleased with our results for the fourth quarter and for the full year,” commented Dave Lesar, Halliburton 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 per cent revenue growth and 23 per cent adjusted operating income growth compared to 2013. The Eastern Hemisphere also had a record year, with revenue and adjusted operating income growth of 10 per cent and 12 per cent, respectively.

“For the fourth quarter, total company revenue of USD 8.8bn 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 per cent compared to the third quarter, and adjusted fourth quarter margins came in just under 21 per cent. 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 per cent and 35 per cent, 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 per cent sequentially, while adjusted operating income declined 4 per cent compared to the third quarter. Operating income was negatively impacted during the fourth quarter from mobilisation 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 USD 129m 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.

 

 

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