Halliburton Reports 2010 Revenues of $18 Billion, Up 22% from 2009
Halliburton today reported its 2010 full-year revenue was $18.0 billion, an increase of 22 percent from the full year 2009, and consolidated operating income was $3.0 billion, an increase of 51 percent from the full year 2009.
Income from continuing operations for the full year 2010 was $1.8 billion, or $1.97 per diluted share, compared to 2009 income from continuing operations of $1.2 billion, or $1.28 per diluted share. These increases were largely attributable to the improved North America business, with higher activity in the unconventional natural gas and oil basins more than offsetting restrained international markets and the effects of the suspension of deepwater activity in the Gulf of Mexico.
Halliburton reported income from continuing operations for the fourth quarter of 2010 was $625 million, or $0.68 per diluted share, compared to $485 million, or $0.53 per diluted share, in the third quarter. Net income for the fourth quarter of 2010 was $605 million, or $0.66 per diluted share. Included in net income for the fourth quarter was a charge to discontinued operations of $17 million, after-tax, or $0.02 per diluted share, related to an indemnity payment on behalf of KBR for a settlement agreement reached with the Federal Government of Nigeria. This compares to net income for the third quarter of 2010 of $544 million, or $0.60 per diluted share.
“Despite the macroeconomic trends that support a more constructive spending outlook, international pricing remains competitive,” said Dave Lesar, chairman, president, and chief executive officer. “However, the improving oil consumption demand levels combined with the industry’s declining spare capacity provides a more favorable outlook for oil services and technologies in 2011 and beyond.”
Consolidated revenue in the fourth quarter of 2010 was $5.2 billion, compared to $4.7 billion in the third quarter of 2010. This increase was attributable to continued strength in United States land and improved international results, as all geographic regions experienced sequential revenue growth during the period. Consolidated operating income was $980 million in the fourth quarter of 2010, compared to $818 million in the third quarter of 2010. A non-cash impairment charge for an oil and gas property negatively impacted third quarter of 2010 operating income by $50 million.
“During the fourth quarter, we achieved double-digit sequential revenue and operating income growth in both North America and international operations as we continued to experience strong demand for our services in North America and improvement in activity in a number of international markets,” said Lesar.
“In North America, revenue and operating income increased 10 percent sequentially, outpacing the United States rig count growth of 4%. The increase in horizontal drilling and activity in liquids-rich plays continued to drive service intensity leading to the highest United States revenue in the company’s history. This 10 percent sequential growth is particularly noteworthy given the significant offsetting impact on revenue and operating income due to the fourth quarter decrease of activity in the Gulf of Mexico.