Business
Halliburton 4Q tops Wall Street expectations
Posted: Jan 25, 2013 6:19 AM
Updated: Jan 25, 2013 6:20 AM
HOUSTON (AP) Halliburton's net income for the fourth quarter declined 26 percent on pricing pressures in the North American market and one time charges from the Deepwater Horizon disaster, as well as acquisitions.
Yet adjusted results beat Wall Street expectations, and shares rose 4 percent before the opening bell Friday.
The 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.
Removing one-time charges and gains, earnings from continuing operations were 67 cents per share.
Revenue increased 3 percent to $7.29 billion from $7.06 billion, bolstered by international growth particularly in the Middle East, Asia and Latin America. The company said that its quarterly revenue performance was the highest in its history.
Analysts surveyed by FactSet expected earnings of 61 cents per share on revenue of $7.06 billion.
The entire sector is under pressure due to a glut in natural gas in North America. Rival Schlumberger has pushed operations overseas, while Halliburton keeps its focus closer to home. But it's expertise in the epicenter of hydraulic fracturing could give the company cache overseas in countries desperate to use the same technology to ease their energy dependence.
While revenue fell in North American during the fourth quarter, it rose in Latin American, Europe, Africa, the Middle East and Asia.
"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.
Halliburton's stock added $1.14, or 3 percent, to $38.95 in premarket trading.
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.
Shares of Halliburton Co., based in Houston, rose $1.52 to $39.33 in premarket trading.
