Halliburton (HAL) Q1 Profits Fall, But Beat the Street

April 19, 2010 9:41 AM EDT
Halliburton Co. (NYSE: HAL) said Monday that its profit for the first-quarter fell 46 percent, as a charge in Venezuela and weaker demand in Latin America hampered the company.

The world's second-largest oilfield services company reported earnings of $206 million or 23 cents per share, compared to $378 million or 42 cents per share in the same quarter last year.

Excluding a $31 million charge caused by the devaluation of Venezuelan currency and a $10 million charge from tax expense, the company earned 28 cents per share, 3 cents better than the market consensus of 25 cents per share.

Revenue for Halliburton in the quarter fell 4 percent to $3.76 billion, which was in line with analyst expectations. Revenue in North America jumped 19 percent in the quarter as operating income in the region more than doubled.

"We will continue to employ the strategies that have driven the successful expansion of our market position,” said Dave Lesar, chairman, president and CEO of Halliburton. “We will leverage our broad portfolio of technology and our global footprint to deliver differentiated solutions in growth markets such as unconventional and deepwater reservoirs. This strategy continues to yield positive results as evidenced by several recent contract wins."

The company showed "disappointing" results in Latin America, as the company said that declining activity in Mexico and the delay of several new projects affected the region.

"Latin America posted disappointing results in the first quarter as revenue declined by 8 percent and operating margins declined to 9 percent due to the further deterioration of activity levels in Mexico as awards for new projects and discrete services have been delayed,” Lesar said.

UPDATE: Click here to see some highlights from Halliburton's Q1 conference call.

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