Tallahassee Journal

Halliburton profit up but warns on oil price drop

Halliburton profit up but warns on oil price drop

Oilfield services giant Halliburton posted stronger fourth quarter revenue and earnings Tuesday, but warned that slumping crude oil prices had weakened its outlook for 2015. The company said revenue rose 14.8% to nearly 8.8 billion from $7.6 billion in the fourth quarter of 2014. Net income climbed 13.8% to $905 million from $795 million in the year ago quarter. For the full year, revenue rose 12% to $32.9 billion and adjusted net income rose 28% to $4.02 a share.The company logo of Halliburton oilfield services corporate offices is seen in Houston

Shares are off 2% to $39.06 in early trading. “I am very pleased with our results for the fourth quarter and for the full year,” said CEO Dave Lesar. “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.

Still, the company warned of challenges in 2015 due to the prolonged slump in global crude oil prices, down more than 55% since mid-June 2014 on oversupply, booming production and slowing demand. Fourth-quarter drilling revenue was flat at $3.3 billion.

Halliburton took a $129 million restructuring charge in the quarter to cover anticipated costs associated with the expected downturn in drilling “We delivered an excellent 2014, but it is clear that 2015 will be a challenging year for the industry,” Lesar said. To deal with the energy slump, the Houston-based company announced a $34.6 billion bid for rival Baker Hughes last November. That merger is expected to be finalized late this year.

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