Halliburton beats by $0.04, beats on revs
Reports Q4 (Dec) earnings of $0.93 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.89; revenues rose 4.8% year/year to $7.64 bln vs the $7.56 bln consensus; adjusted operating income was up 2% sequentially, driven by record revenue in our Middle East/Asia and Europe/Africa/CIS regions.
Completion and Production (C&P) revenue in the fourth quarter of 2013 was $4.5 billion, an increase of $41 million, or 1%, from the third quarter of 2013. This increase was primarily driven by stronger activity and year-end completion tool and equipment sales in our international operations, which more than offset seasonally lower activity in North America. C&P operating income in the fourth quarter of 2013 was $765 million, relatively flat from the third quarter of 2013. Excluding the restructuring charges, C&P operating income decreased $28 million, or 3%, compared to the third quarter of 2013.
Drilling and Evaluation (D&E) revenue in the fourth quarter of 2013 was $3.1 billion, an increase of $126 million, or 4%, from the third quarter of 2013. This increase was primarily driven by year-end software sales in all regions and higher activity in the Eastern Hemisphere, which more than offset the North America activity decline. D&E operating income in the fourth quarter of 2013 was $498 million, an increase of $48 million, or 11%, from the third quarter of 2013. Adjusted for the restructuring charges, D&E operating income increased $45 million, or 10%, sequentially.
"For the full year, Eastern Hemisphere had industry-leading revenue growth, increasing 17% year-over-year, with a 23% increase in adjusted operating income. In 2014, we expect low double-digit year-over-year growth in Eastern Hemisphere revenue, with quarterly margins consistently higher each quarter on a year-over-year basis, approaching 20% by year-end and averaging in the upper teens.
"Latin America continues to be a challenging market. Fourth quarter revenue and operating income were essentially flat compared to the third quarter. Higher year-end software sales, increased cementing activity, and the recognition of a value added tax refund receivable in Brazil offset a decline in integrated project activity in Mexico.
"In North America, fourth quarter revenue and adjusted operating income declined sequentially 1% and 6%, respectively, impacted by seasonal activity disruptions related to weather and holidays. For the full year, we expect the average United States land rig count to modestly increase in 2014, and anticipate mid-single digit growth in North America revenue, driven by increased horizontal service intensity related to drilling efficiency, increased usage of pad drilling, and increasing activity levels in the Gulf of Mexico. We remain committed to our goal of a 200 basis point improvement in North America margins in 2014.
Completion and Production (C&P) revenue in the fourth quarter of 2013 was $4.5 billion, an increase of $41 million, or 1%, from the third quarter of 2013. This increase was primarily driven by stronger activity and year-end completion tool and equipment sales in our international operations, which more than offset seasonally lower activity in North America. C&P operating income in the fourth quarter of 2013 was $765 million, relatively flat from the third quarter of 2013. Excluding the restructuring charges, C&P operating income decreased $28 million, or 3%, compared to the third quarter of 2013.
Drilling and Evaluation (D&E) revenue in the fourth quarter of 2013 was $3.1 billion, an increase of $126 million, or 4%, from the third quarter of 2013. This increase was primarily driven by year-end software sales in all regions and higher activity in the Eastern Hemisphere, which more than offset the North America activity decline. D&E operating income in the fourth quarter of 2013 was $498 million, an increase of $48 million, or 11%, from the third quarter of 2013. Adjusted for the restructuring charges, D&E operating income increased $45 million, or 10%, sequentially.
"For the full year, Eastern Hemisphere had industry-leading revenue growth, increasing 17% year-over-year, with a 23% increase in adjusted operating income. In 2014, we expect low double-digit year-over-year growth in Eastern Hemisphere revenue, with quarterly margins consistently higher each quarter on a year-over-year basis, approaching 20% by year-end and averaging in the upper teens.
"Latin America continues to be a challenging market. Fourth quarter revenue and operating income were essentially flat compared to the third quarter. Higher year-end software sales, increased cementing activity, and the recognition of a value added tax refund receivable in Brazil offset a decline in integrated project activity in Mexico.
"In North America, fourth quarter revenue and adjusted operating income declined sequentially 1% and 6%, respectively, impacted by seasonal activity disruptions related to weather and holidays. For the full year, we expect the average United States land rig count to modestly increase in 2014, and anticipate mid-single digit growth in North America revenue, driven by increased horizontal service intensity related to drilling efficiency, increased usage of pad drilling, and increasing activity levels in the Gulf of Mexico. We remain committed to our goal of a 200 basis point improvement in North America margins in 2014.