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 HOUSTON (AP) -- Halliburton's net income for the fourth
  quarter fell 26 percent because of a decline in North America, where drilling
  activity slowed and the company has been forced to charge lower prices for its
  services.

Still, the results beat Wall Street expectations and
shares  rose 5 percent.

 The world's second-largest oilfield services company
earned  $669 million, or 72 cents per share, for the three months ended Dec. 31.
That's  down from $906 million, or 98 cents per share, a year ago. But excluding
  one-time items, earnings were 67 cents per share, 6 cents above the forecast of
  analysts surveyed by FactSet.

Halliburton is a major provider of the pressure-pumping
  technique known as hydraulic fracturing, or "fracking," which has enable
  drilling companies to unlock vast supplies oil and natural gas from underground
  shale deposits in the U.S. Natural gas production in the U.S. rose by about 20
  percent between 2007 and 2011, according to the Energy Department.
Halliburton's  revenue rose more than 60 percent in that same period.

But now supplies of gas are plentiful and the price has
  dropped sharply. Natural gas futures prices averaged about $2.83 per 1,000
cubic  feet in 2012, down from $4.03 in 2011. The number of rigs drilling for
natural  gas has fallen off, and some of Halliburton's pressure-pumping
equipment is  sitting idle, although a boom in oil drilling in North Dakota and
Texas has  offset some of the slump in the natural gas business.

 Halliburton's North American operating income fell 58
  percent. Schlumberger, the world's biggest oilfield services company, was able
  to offset the decline in drilling on land with increased revenue in the Gulf of
  Mexico. In addition, Schlumberger has bigger operations overseas.

While Halliburton had traditionally kept its focus closer
to  home, it is looking increasingly abroad. And it's expertise in the epicenter
of  hydraulic fracturing could give the company cache in countries desperate to
use  the same technology to ease their energy dependence.

 During the fourth quarter, revenue rose in Latin American,
  Europe, Africa, the Middle East and Asia.

 Overall revenue increased 3 percent in the quarter to
$7.29  billion from $7.06 billion. Halliburton said the quarterly revenue
performance  was the highest in its history.

 Halliburton's stock rose $1.91, or 5 percent, to close at
  $39.72 Friday.

 "The company's international growth strategy continued to
  benefit the top and bottom lines," said Scott Gruber, an analyst with Bernstein
  Research. "In fact, following spectacular 20 percent (year-over-year) revenue
  growth abroad and 39 percent income growth, Halliburton generated 57 percent of
  its income abroad."

 While the final quarter of the year was exceptionally
slow,  company officials indicate the environment in North America will remain
subdued  this year.

 "In 2013, we anticipate the North America rig count will
  improve from fourth quarter levels but will be down slightly compared to 2012,"
  said Chairman and CEO Dave Lesar in a statement

For the year, the Houston company earned $2.64 billion, or
  $2.84 per share. In the prior year it earned $2.84 billion, or $3.08 per
  share.

 Earnings from continuing operations were $2.78 per
  share.

Annual revenue rose 15 percent to $28.5 billion from
$24.83  billion

 


Comments

05/14/2015 1:37am

In this way the students find him as a friend and as a teacher in same way and can contribute the make a big difference in the education of a student. Because every student want to make friends.

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04/30/2017 1:00am

All companies experience fluctuation in their net income. Economy is changing from time to time, and it's automatic that all branches related to it would be affected too! Halliburton's net income may fell but I am sure that they go up for the succeeding years. This is just a challenge for everyone!

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Great post.

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