Det danske Fredsakademi
Kronologi over fredssagen og international politik 21. Juli 2005 / Time Line July 21, 2005
Version 3.007/21/2005
Halliburton achieves record operating income of $607
million
HALLIBURTON ANNOUNCES SECOND QUARTER RESULTS
76 cents earnings per diluted share
http://www.halliburton.com/default/main/halliburton/eng/news/source_files/press_release/2005/corpnws_072105.pdf
HOUSTON, Texas – Halliburton announced today that second
quarter of 2005 income from continuing operations was $391 million
or $0.76 per diluted share. This compares to a loss from continuing
operations of $58 million or $0.13 per diluted share in the second
quarter of 2004, which included a $200 million after-tax loss from
the Barracuda-Caratinga offshore engineering, procurement,
installation, and commissioning (EPIC) project.
Consolidated revenue in the second quarter of 2005 was $5.2
billion, up 4% from the second quarter of 2004. This increase was
largely attributable to higher activity in the Energy Services
Group (ESG), approximately half of which was derived from
international growth. This was partially offset by lower revenue in
KBR on government services projects in the Middle East as well as a
reduction in work on offshore EPIC and other oil and gas projects
nearing completion in the Energy and Chemicals segment.
Consolidated operating income was $607 million in the second
quarter of 2005 compared to a loss of $26 million in the second
quarter of 2004. ESG experienced strong performance reflecting
increased customer exploration and production spending, higher
utilization of assets, and increased pricing. KBR received
favorable award fees from its government services work in the
Middle East and experienced improved project performance in the
Energy and Chemicals segment. The second quarter of 2004 operating
loss included a $310 million pretax charge on the
Barracuda-Caratinga project.
“We are extremely pleased with our second quarter
performance, both for ESG and KBR,” said Dave Lesar,
chairman, president, and chief executive officer of Halliburton.
“ESG posted a 44% incremental margin over the second quarter
of 2004 on strong international growth. KBR continues to improve
earnings, build backlog, and make progress in resolving government
contract issues.”
2005 Second Quarter Segment Results
Energy Services Group
ESG posted second quarter of 2005 revenue of $2.5 billion, a $567
million or 30% increase over the second quarter of 2004, and
operating income of $522 million, up $251 million or 93% from the
same period in the prior year.
Production Optimization operating income for the second quarter of
2005 was $245 million, an increase of $124 million or 102% over the
second quarter of 2004.
Production enhancement services operating income increased 110%,
primarily on increased demand for well stimulation services for
natural gas applications, increased utilization of crews and
assets, and improved pricing in the United States. West Africa and
the North Sea also posted strong results. Completion tools
operating income increased 49%, and operating margins increased by
over four percentage points due to a change in mix to higher margin
product sales and manufacturing efficiencies.
Fluid Systems operating income for the second quarter of 2005 was
$135 million, a $58 million or 75% increase over the second quarter
of 2004. Cementing services operating income increased 74% due to
higher global drilling activity and improved pricing and asset
utilization in the United States. Baroid Fluid Services operating
income increased 78% on improved performance in Africa, increased
deepwater work in the Gulf of Mexico, and strong growth in higher
margin completion fluids and surface solutions product lines.
Drilling and Formation Evaluation operating income was $126
million, a $67 million or 114% increase over the prior year second
quarter. All regions showed earnings growth, with international
operations driving 76% of the increase. Sperry Drilling Services
operating income increased 116%, benefiting from improved operating
results in West Africa and increased activity in the United States
and the North Sea. Logging services operating income increased 83%
due to improvement in the United States and West Africa and strong
growth in the Middle East. Security DBS drill bits operating income
tripled reflecting efficiencies related to facility consolidations,
higher activity, and the continued strength of fixed cutter bit
volumes.
Digital and Consulting Solutions second quarter of 2005 operating
income was $16 million, a $2 million or 14% increase as compared to
the prior year period. Landmark’s operating income increased
by $14 million, primarily driven by higher revenue across all
regions. The increase was offset by a $15 million charge for two
integrated solutions projects in southern Mexico.
KBR
KBR revenue for the second quarter of 2005 was $2.7 billion, a 12%
decrease compared to the second quarter of 2004. Operating income
for the second quarter of 2005 was $122 million compared to an
operating loss of $277 million in the second quarter of 2004.
Government and Infrastructure (G&I) operating income for the
second quarter of 2005 was $73 million compared to $19 million in
the second quarter of 2004, a 284% increase. The increase primarily
resulted from positive developments related to LogCAP award fees.
G&I continues to receive favorable job performance ratings for
its work supporting the troops in Iraq. As a result, G&I
recognized $29 million of income for recent awards on completed
work, and increased the award fee accrual rate for its ongoing work
under the LogCAP contract from 50% to 72% during the quarter.
G&I also realized improved performance at the DML shipyard,
partially offset by the completion of the RIO contract in Iraq.
Energy and Chemicals (E&C) operating income totaled $49 million
in the second quarter of 2005 compared to a $296 million loss in
the second quarter of 2004. Contributing to this increase was
strong performance in engineering and project management projects
in Angola and the Caspian and income from recently awarded
liquefied natural gas (LNG) and gas-to-liquids (GTL) projects.
Included in the second quarter of 2004 was a pretax loss of $310
million on the Barracuda-Caratinga project in Brazil.
Halliburton’s Iraq-related work contributed approximately
$1.4 billion in revenue in the second quarter of 2005 and $48
million of operating income, or a 3.4% margin.
Technology and Significant Achievements
Halliburton had a number of advances in technology and new contract
awards. Energy Services Group new technologies and contract
awards:
• ESG won four Hart's E&P meritorious engineering
achievement awards for 2005. William Pike, Hart's editor-in-chief,
presented the awards at the Offshore Technology Conference in
Houston in May. The four winning Halliburton technologies are: the
Well Seismic Fusion™ technology for exploration; the
FasTest™ system for subsurface characterization and analysis;
BOREMAX™ high-performance water-based drilling fluid; and
DeepReach SM coiled tubing intervention service.
• Halliburton and Intel have announced a collaborative program
to identify and promote innovative, industry-leading solutions
developed by Halliburton that benefit from the high performance
availability and scalability of Intel's advanced computing
technology. From wireless fracturing spreads and electronic field
tickets to sophisticated knowledge management solutions and
real-time operations, Intel is helping Halliburton to Unleash the
Energy™ in the oil and gas industry today.
• Halliburton's Production Optimization segment developed the
SandTrap SM service using a formation stabilization system to
assist operators with the economical recovery of bypassed
hydrocarbons in friable or weakly consolidated reservoir sands. To
date, Halliburton's SandTrap SM service has been successfully
deployed in reservoirs prone to sand production problems in the
Gulf of Mexico, California, Indonesia, and Argentina.
• Halliburton's Production Optimization segment has
successfully installed the first PoroFlex® expandable
completion system on the Arabian Peninsula for Saudi Aramco. The
sand control technique of expanding screen in an open hole provides
a solution for slim-hole side track re-completions that maximize
the reservoir exposure while maintaining a sufficiently large
internal diameter to allow the desired production rates. In
addition, maintaining full bore access facilitates remedial
operation during the life of the well.
• Halliburton’s Production Optimization segment was
awarded a contract to provide its EZ-Gauge™ technology on
projects in Vietnam for Japan Vietnam Petroleum Company Limited
(JVPC), a joint venture company of Nippon Oil Exploration Limited
(a subsidiary of Nippon Oil Group), ConocoPhillips, and
PetroVietnam Exploration and Production Company (a subsidiary of
PetroVietnam). JVPC selected the EZ-Gauge system because it
provides a cost-effective, accurate pressure data collection system
that is free of downhole electronics. Reliability and longevity of
the system is significantly greater than other monitoring
technologies.
KBR new contract awards:
• KBR was selected to continue its services as the premier
logistics support provider to United States forces deployed in the
Balkans region and to provide similar contingency operations
support through the United States Army Europe’s (USAREUR)
area of responsibility. The United States Army Corps of Engineers'
Transatlantic Programs Center announced that it awarded the USAREUR
Support Contract to KBR for a period of up to five years. The
competitively awarded indefinite delivery/indefinite quantity
contract will replace the Balkans Support Contract that was awarded
to KBR in 1999. The contract has a two-month phase-in period, a
one-year base performance period, and four additional options that
can be awarded at the government's discretion. The Army may order
up to $1.25 billion in services if required, which is the
contract's maximum capacity for the five-year period.
• KBR and its joint venture team, including JGC Corporation of
Japan and Technip, were awarded a Front End Engineering and Design
(FEED) contract for the Angola LNG Project, to be constructed near
Soyo in Northern Angola, approximately 300 kilometers north of
Luanda. The five million tonnes per annum LNG facility will be
operated by a new company to be formed by Sonangol (the Angola
national oil company), Chevron, BP, ExxonMobil, and Total.
• KBR and its joint venture partners, including JGC
Corporation, Hatch and Clough, have been awarded a FEED contract
and option for an Engineering, Procurement, and Construction
Management (EPCM) contract for the Greater Gorgon Downstream LNG
Project. The downstream project will include two LNG processing
trains, each with a capacity of five million tonnes per annum, to
be located on Barrow Island, Western Australia. The FEED contract
is expected to be followed by the EPCM contract when the project
receives final investment decision approval, which is expected in
mid-2006.
• KBR has been awarded a contract for a Licensor Engineering
Package for conversion of BP West Coast Products, LLC's Carson,
California refinery's MTBE unit to the production of iso-octene.
Iso-octene is subsequently converted to iso-octane gasoline blend
stock. NExOCTANE™ technology was developed by Fortum Oil Oy
in Finland and is available to United States refiners under direct
license from KBR.
Halliburton, founded in 1919, is one of the world’s largest
providers of products and services to the petroleum and energy
industries. The company serves its customers with a broad range of
products and services through its Energy Services Group and KBR.
The company’s World Wide Web site can be accessed at
www.halliburton.com.
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