Halliburton Turns To Profit, Results Beat View

(RTTNews) - Oilfield services provider Halliburton Co. (HAL, HAL.TO, HAL.F) Monday reported a profit for the first quarter, compared to a loss in the previous year that was hit by a hefty charge. Both earnings and revenues topped Wall Street estimates.

Net income attributable to the company for the first quarter was $622 million or $0.73 per share compared to a loss of $18 million or $0.02 per share in the year-ago period.

Income from continuing operations attributable to the company was $623 million or $0.73 per share, compared to a loss from continuing operations of $13 million or $0.01 per share in the same quarter last year.

Excluding a $637 million or $0.68 per share charge to increase a reserve related to the Macondo litigation, income from continuing operations was $624 million or $0.67 per share last year.

On average, 34 analysts polled by Thomson Reuters expected the company to report earnings of $0.71 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue grew to $7.35 billion from $6.97 billion in the prior-year quarter. Analysts estimated revenues of $7.24 billion.

Dave Lesar, chairman, president and CEO, said, "I am pleased with total company revenue of $7.3 billion, which was a record first quarter for Halliburton. Operating income of $970 million was 8% higher than adjusted operating income in the first quarter of 2013, and was the result of our double-digit growth in the Eastern Hemisphere.''

Completion and Production revenue grew 8 percent to $4.4 billion, primarily driven by stronger stimulation activity in the U.S. land market, as well as higher completion tools sales in all regions.

Drilling and Evaluation revenue rose 2 percent to $2.9 billion, as a result of higher drilling activity in the Eastern Hemisphere and improved testing activity in all regions.

In the Eastern Hemisphere, revenue climbed 11 percent and the company continues to forecast that full-year revenue growth for the region will be in the low double digits, and average full year margins will be in the upper teens.

Revenue climbed 13 percent in the Middle East/Asia region. Saudi Arabia led the improvement with growth across all product lines due to an increase in integrated project activity as well as a higher rig count which is driving improved services.

In Europe/Africa/CIS, revenue advanced 9 percent, amid higher completion tools sales and cementing activity, and increased drilling and open hole wireline activity in Angola.

Revenue dropped 9 percent in Latin America due to a decline in drilling-related activity in Brazil and activity reductions in Mexico.

In North America, revenue increased 5 percent, but results were hurt by lower pressure pumping pricing and transitory issues related to weather disruption and higher logistics costs.

The company expects earnings per share to grow about 25 percent in the second quarter, with further increases to follow.

HAL closed up 0.7 percent on Thursday at $60.90.