Halliburton Announces First Quarter 2021 Results
Halliburton Company (NYSE: HAL) reported a net income of $170 million or $0.19 per diluted share for Q1 2021, reversing a net loss of $235 million in Q4 2020. Revenue reached $3.5 billion, a 7% increase from the previous quarter. Operating income stood at $370 million, up from a loss of $96 million. North America saw a 13% revenue increase, driven by higher drilling-related services. International revenue increased by 2%. Halliburton also introduced innovative technologies aimed at enhancing operational efficiency and signed contracts for digital transformation projects in Kuwait and Norway.
- Net income of $170 million for Q1 2021, compared to a loss of $235 million in Q4 2020.
- Revenue for Q1 2021 was $3.5 billion, a 7% increase from the previous quarter.
- Operating income rose to $370 million, a significant improvement from Q4 2020.
- North America revenue increased by 13%, driven by higher drilling-related services.
- Introduction of SmartFleet™ and Ovidius™ systems to enhance operational efficiency.
- Strategic partnerships with Kuwait Oil Company and Norwegian Petroleum Directorate to advance digital solutions.
- Operating income in Completion and Production segment decreased by 11% to $252 million.
- Lower cementing services in Russia and reduced activity in the Middle East negatively impacted revenues.
Halliburton Company (NYSE: HAL) announced today net income of
“I am pleased with our first quarter performance, which demonstrates the benefits of our strong operating leverage in a recovering global market. We achieved total company revenue of
“The first quarter marked an activity inflection for the international markets, while North America continued to stage a healthy recovery. I expect international activity growth to accelerate, and the early positive momentum in North America gives me confidence in the activity cadence for the rest of the year.
“Our free cash flow performance in the first quarter was a great first step to delivering strong free cash flow for the full year. It demonstrates our margin progression and focus on managing all aspects of capital efficiency, including technological advancements, process improvements, and working capital efficiencies.
“I am optimistic about how this transition year is shaping up. Our focus on technology innovation, digital investments, and capital efficiency positions us for profitable growth internationally and maximizing value in North America. Halliburton will continue to execute our key strategic priorities to deliver industry-leading returns and solid free cash flow as the multi-year recovery unfolds,” concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the first quarter of 2021 was
Drilling and Evaluation
Drilling and Evaluation revenue in the first quarter of 2021 was
Geographic Regions
North America
North America revenue in the first quarter of 2021 was
International
International revenue in the first quarter of 2021 was
Latin America revenue in the first quarter of 2021 was
Europe/Africa/CIS revenue in the first quarter of 2021 was
Middle East/Asia revenue in the first quarter of 2021 was
Selective Technology & Highlights
- Halliburton successfully delivered real-time control of fracture placement while pumping on a multi-well pad using the SmartFleet™ intelligent fracturing system in the Permian Basin. An industry first, SmartFleet applies automation enabled by subsurface measurements and real-time visualization to intelligently adapt and respond to reservoir behavior, driving real-time improvement in completion execution and fracture outcomes.
- Halliburton introduced the Ovidius™ isolation system, a new packer that transforms from an engineered metal alloy into a rock-like material when it reacts with downhole fluids, creating a long-lasting seal for improved well integrity. Operators can deploy Ovidius in wellbore isolation applications, where it will provide the traditional benefits of expanding elastomers with new capabilities to withstand differential pressures and extreme temperatures found in the most challenging high-pressure/high-temperature environments while providing unparalleled anchoring forces.
- Kuwait Oil Company (KOC) awarded Halliburton a contract to collaborate on their digital transformation journey through the maintenance and expansion of digital solutions for their North Kuwait asset. It will allow KOC to accelerate their data-to-decisions cycle by designing and operating digital twins of the field to automate work processes, supported by DecisionSpace® 365, a cloud-based subscription service for E&P applications.
- Halliburton signed an eight-year contract with the Norwegian Petroleum Directorate (NPD) to deploy and operate Diskos, the national repository of seismic, well, and production data for the Norwegian oil and gas industry. Halliburton Landmark will deliver Diskos 2.0 using DecisionSpace® 365 cloud services in iEnergy® – the industry’s first E&P hybrid cloud. The cloud-native services are Open Subsurface Data Universe™ compliant and provide high-quality data, security, and governance, so users can easily access, visualize, and interpret data from the Norwegian Continental Shelf.
- Halliburton and Optime Subsea formed a global strategic alliance to apply Optime’s innovative Remotely Operated Controls System (ROCS) to Halliburton’s completion landing string services. The companies will also collaborate and offer intervention and workover control system services leveraging Optime’s Subsea Controls and Intervention Light System (SCILS) technology, a remote digital enabled system that complements Halliburton’s subsea intervention expertise. The alliance will provide umbilical-less operations and subsea controls for deepwater completions and interventions delivering increased operational efficiencies while minimizing safety risk through a smaller offshore footprint. Halliburton will offer Optime’s innovative technologies as a service across its global portfolio.
- Bhavesh V. (Bob) Patel joined Halliburton’s board of directors effective February 17, 2021. He will stand for election by shareholders at the Company’s annual meeting on May 19,2021. Mr. Patel serves as chief executive officer of LyondellBasell, one of the largest plastics, chemicals, and refining companies in the world. Prior to becoming CEO, he served in senior executive leadership roles for LyondellBasell’s largest business segment.
- Halliburton Labs announced the inaugural group of companies selected to participate in its collaborative environment where entrepreneurs, academics, and investors come together to advance cleaner, affordable energy. Enexor BioEnergy, Momentum Technologies and OCO Inc. will have access to Halliburton’s deep business and technical expertise, facilities, and network to accelerate their respective offerings.
About Halliburton
Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With more than 40,000 employees, representing 130 nationalities in more than 70 countries, the company helps its customers maximize value throughout the lifecycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. Visit the Company’s website at www.halliburton.com. Connect with Halliburton on Facebook, Twitter, LinkedIn, Instagram and YouTube.
Forward-looking Statements
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the severity and duration of the COVID-19 pandemic, related economic repercussions and the resulting negative impact on demand for oil and gas; the current significant surplus in the supply of oil and the ability of the OPEC+ countries to agree on and comply with supply limitations; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the continuation or suspension of our stock repurchase program, the amount, the timing, and the trading prices of Halliburton common stock, and the availability and alternative uses of cash; changes in the demand for or price of oil and/or natural gas; potential catastrophic events related to our operations, and related indemnification and insurance matters; protection of intellectual property rights and against cyber-attacks; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to oil and natural gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services, and climate-related initiatives; compliance with laws related to income taxes and assumptions regarding the generation of future taxable income; risks of international operations, including risks relating to unsettled political conditions, war, the effects of terrorism, foreign exchange rates and controls, international trade and regulatory controls and sanctions, and doing business with national oil companies; weather-related issues, including the effects of hurricanes and tropical storms; changes in capital spending by customers, delays or failures by customers to make payments owed to us, and the resulting impact on our liquidity; execution of long-term, fixed-price contracts; structural changes and infrastructure issues in the oil and natural gas industry; maintaining a highly skilled workforce; availability and cost of raw materials; agreement with respect to and completion of potential dispositions, acquisitions and integration and success of acquired businesses and operations of joint ventures. Halliburton's Form 10-K for the year ended December 31, 2020, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors identified that may affect Halliburton's business, results of operations, and financial condition. Halliburton undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
HALLIBURTON COMPANY Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited) |
||||||||||||||
|
Three Months Ended |
|||||||||||||
|
March 31 |
|
December 31 |
|||||||||||
|
2021 |
|
|
2020 |
|
|
2020 |
|
||||||
Revenue: |
|
|
|
|
|
|||||||||
Completion and Production |
$ |
1,870 |
|
|
|
$ |
2,962 |
|
|
|
$ |
1,810 |
|
|
Drilling and Evaluation |
1,581 |
|
|
|
2,075 |
|
|
|
1,427 |
|
|
|||
Total revenue |
$ |
3,451 |
|
|
|
$ |
5,037 |
|
|
|
$ |
3,237 |
|
|
Operating income (loss): |
|
|
|
|
|
|||||||||
Completion and Production |
$ |
252 |
|
|
|
$ |
345 |
|
|
|
$ |
282 |
|
|
Drilling and Evaluation |
171 |
|
|
|
217 |
|
|
|
117 |
|
|
|||
Corporate and other |
(53 |
) |
|
|
(60 |
) |
|
|
(49 |
) |
|
|||
Impairments and other charges (a) |
— |
|
|
|
(1,073 |
) |
|
|
(446 |
) |
|
|||
Total operating income (loss) |
370 |
|
|
|
(571 |
) |
|
|
(96 |
) |
|
|||
Interest expense, net |
(125 |
) |
|
|
(134 |
) |
|
|
(125 |
) |
|
|||
Loss on early extinguishment of debt (b) |
— |
|
|
|
(168 |
) |
|
|
— |
|
|
|||
Other, net |
(22 |
) |
|
|
(23 |
) |
|
|
(19 |
) |
|
|||
Income (loss) before income taxes |
223 |
|
|
|
(896 |
) |
|
|
(240 |
) |
|
|||
Income tax benefit (provision) (c) |
(52 |
) |
|
|
(119 |
) |
|
|
13 |
|
|
|||
Net Income (loss) |
$ |
171 |
|
|
|
$ |
(1,015 |
) |
|
|
$ |
(227 |
) |
|
Net loss attributable to noncontrolling interest |
(1 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
|
|||
Net Income (loss) attributable to company |
$ |
170 |
|
|
|
$ |
(1,017 |
) |
|
|
$ |
(235 |
) |
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income (loss) per share |
$ |
0.19 |
|
|
|
$ |
(1.16 |
) |
|
|
$ |
(0.27 |
) |
|
Basic and diluted weighted average common shares outstanding |
889 |
|
|
|
878 |
|
|
|
885 |
|
|
|||
(a) |
See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended March 31, 2020 and December 31, 2020. |
(b) |
During the three months ended March 31, 2020, Halliburton recognized a |
(c) |
During the three months ended March 31, 2020, Halliburton recognized a |
See Footnote Table 1 for Reconciliation of As Reported Operating Income (Loss) to Adjusted Operating Income. |
|
See Footnote Table 2 for Reconciliation of As Reported Net Income (Loss) to Adjusted Net Income. |
|
HALLIBURTON COMPANY Condensed Consolidated Balance Sheets (Millions of dollars) (Unaudited) |
|||||||
|
|
|
|
||||
|
March 31 |
|
December 31 |
||||
|
2021 |
|
2020 |
||||
Assets |
|||||||
Current assets: |
|
|
|
||||
Cash and equivalents |
$ |
2,446 |
|
|
$ |
2,563 |
|
Receivables, net |
3,250 |
|
|
3,071 |
|
||
Inventories |
2,349 |
|
|
2,349 |
|
||
Other current assets |
1,475 |
|
|
1,492 |
|
||
Total current assets |
9,520 |
|
|
9,475 |
|
||
Property, plant, and equipment, net |
4,231 |
|
|
4,325 |
|
||
Goodwill |
2,804 |
|
|
2,804 |
|
||
Deferred income taxes |
2,165 |
|
|
2,166 |
|
||
Operating lease right-of-use assets |
760 |
|
|
786 |
|
||
Other assets |
1,095 |
|
|
1,124 |
|
||
Total assets |
$ |
20,575 |
|
|
$ |
20,680 |
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity |
|||||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,769 |
|
|
$ |
1,573 |
|
Current maturities of long-term debt |
515 |
|
|
695 |
|
||
Accrued employee compensation and benefits |
479 |
|
|
517 |
|
||
Current portion of operating lease liabilities |
250 |
|
|
251 |
|
||
Other current liabilities |
1,212 |
|
|
1,385 |
|
||
Total current liabilities |
4,225 |
|
|
4,421 |
|
||
Long-term debt |
9,127 |
|
|
9,132 |
|
||
Operating lease liabilities |
718 |
|
|
758 |
|
||
Employee compensation and benefits |
518 |
|
|
562 |
|
||
Other liabilities |
808 |
|
|
824 |
|
||
Total liabilities |
15,396 |
|
|
15,697 |
|
||
Company shareholders’ equity |
5,170 |
|
|
4,974 |
|
||
Noncontrolling interest in consolidated subsidiaries |
9 |
|
|
9 |
|
||
Total shareholders’ equity |
5,179 |
|
|
4,983 |
|
||
Total liabilities and shareholders’ equity |
$ |
20,575 |
|
|
$ |
20,680 |
|
HALLIBURTON COMPANY Condensed Consolidated Statements of Cash Flows (Millions of dollars) (Unaudited) |
|||||||||
|
Three Months Ended |
||||||||
|
March 31 |
||||||||
|
2021 |
|
|
2020 |
|
||||
Cash flows from operating activities: |
|
|
|
||||||
Net Income (loss) |
$ |
171 |
|
|
|
$ |
(1,015 |
) |
|
Adjustments to reconcile net income (loss) to cash flows from operating activities: |
|
|
|
||||||
Impairments and other charges |
— |
|
|
|
1,073 |
|
|
||
Depreciation, depletion, and amortization |
226 |
|
|
|
348 |
|
|
||
Working capital (a) |
59 |
|
|
|
(200 |
) |
|
||
Other operating activities |
(253 |
) |
|
|
19 |
|
|
||
Total cash flows provided by (used in) operating activities |
203 |
|
|
|
225 |
|
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FAQ
What were Halliburton's net income and earnings per share for Q1 2021?
Halliburton reported a net income of $170 million, or $0.19 per diluted share for Q1 2021.
How much revenue did Halliburton earn in Q1 2021?
Halliburton's revenue for Q1 2021 was $3.5 billion, reflecting a 7% increase compared to Q4 2020.
What was the operating income for Halliburton in the first quarter of 2021?
Halliburton's operating income for Q1 2021 was $370 million, compared to an operating loss of $96 million in Q4 2020.
How did Halliburton's revenue in North America change in Q1 2021?
North America revenue increased by 13% in Q1 2021, driven by higher drilling-related services.
What new technologies did Halliburton introduce recently?
Halliburton introduced the SmartFleet™ intelligent fracturing system and the Ovidius™ isolation system to enhance operational efficiency.
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HAL Stock Data
27.88B
874.34M
0.45%
86.09%
2.48%
Oil & Gas Equipment & Services
Oil & Gas Field Services, Nec
United States of America
HOUSTON
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