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1-3492
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No.
75-2677995
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(Commission
File Number)
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(IRS
Employer Identification No.)
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1401
McKinney, Suite 2400, Houston, Texas
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77010
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(Address
of Principal Executive Offices)
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(Zip
Code)
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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·
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Landmark
announced that its Customer Support organization has received global
certification under the prestigious Service Capability & Performance
(SCP) Standards, an internationally recognized quality program for
technology service and support operations. This is the tenth
consecutive year that Landmark's North American support operation has
achieved SCP certification and the fifth consecutive year its global
operations have met the stringent standards. Landmark, which is
the only oilfield services company to have achieved global SCP
certification, joins the ranks of more than 200 technology service and
support organizations around the world that participate in the SCP
Standards program.
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·
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Halliburton
has been awarded a one-year contract (with four one-year extension
options) by Shell U.K. Limited for the provision of a portable modular
workover unit. The initial work contract period is for one workover and
three sidetracks on the Shell Gannet platform - operations that have the
potential to increase the field’s oil production. The project is due to
commence in the fourth quarter of
2008.
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·
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Halliburton
inaugurated its sixth Eastern Hemisphere-based manufacturing center in
Johor, Malaysia, augmenting the company’s 16 existing production
facilities across North and Latin America, Europe, and Asia. The
215,000-square-foot facility, approximately 37 miles northwest of
Singapore, targets supply chain production and delivery capabilities
across Halliburton’s Completion and Production
division. Personnel in Johor perform procurement and
customer-service activities, as well as engineering, machining, and
product assembly. Approximately 100 employees work in the facility today,
and headcount is expected to exceed 250 by
year-end.
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·
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StatoilHydro
has awarded Halliburton and WellDynamics nearly $900 million in contracts
to provide completion equipment and services, tubing conveyed perforating
services, and SmartWell® completion technology for numerous oil and gas
fields on the Norwegian continental shelf. Additionally, the contracts
allow for the provision of other products and services, including
multilateral completions, expandable completion systems, and zonal
isolation and control systems. Work is scheduled to begin in September
2008 and will last up to nine years if all option periods are
exercised.
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Three
Months Ended
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||||||||||||
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March
31
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December
31
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|||||||||||
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2008
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2007
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2007
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||||||||||
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Revenue:
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||||||||||||
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Completion
and Production
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$ | 2,191 | $ | 1,844 | $ | 2,289 | ||||||
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Drilling
and Evaluation
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1,838 | 1,578 | 1,890 | |||||||||
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Total
revenue
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$ | 4,029 | $ | 3,422 | $ | 4,179 | ||||||
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Operating
income (loss):
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||||||||||||
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Completion
and Production
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$ | 529 | $ | 477 | $ | 571 | ||||||
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Drilling
and Evaluation
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384 | 362 |
403
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|||||||||
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Corporate
and Other
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(66 | ) | (51 | ) | (67 | ) | ||||||
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Total
operating income
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847 | 788 | 907 | |||||||||
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Interest
expense
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(38 | ) | (38 | ) | (36 | ) | ||||||
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Interest
income
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20 | 38 | 24 | |||||||||
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Other,
net
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(1 | ) | (3 | ) | (2 | ) | ||||||
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Income
from continuing operations before income taxes
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||||||||||||
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and minority
interest
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828 | 785 | 893 | |||||||||
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Provision
for income taxes
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(238 | ) | (259 | ) | (212) | (a) | ||||||
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Minority
interest in net (income) loss of subsidiaries
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(7 | ) | 3 | (7 | ) | |||||||
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Income
from continuing operations
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583 | 529 | 674 | |||||||||
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Income
from discontinued operations, net
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1 | 23 | 16 | |||||||||
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Net
income
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$ | 584 | $ | 552 | $ | 690 | ||||||
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Basic
income per share:
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||||||||||||
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Income
from continuing operations
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$ | 0.67 | $ | 0.53 | $ | 0.77 | ||||||
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Income
from discontinued operations, net
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– | 0.02 | 0.02 | |||||||||
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Net
income
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$ | 0.67 | $ | 0.55 | $ | 0.79 | ||||||
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Diluted
income per share:
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||||||||||||
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Income
from continuing operations
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$ | 0.64 | $ | 0.52 | $ | 0.74 | ||||||
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Income
from discontinued operations, net
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– | 0.02 | 0.01 | |||||||||
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Net
income
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$ | 0.64 | $ | 0.54 | $ | 0.75 | ||||||
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Basic
weighted average common shares outstanding
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873 | 992 | 875 | |||||||||
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Diluted
weighted average common shares outstanding
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911 | 1,025 | 916 | |||||||||
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(a)
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Provision
for income taxes included a $55 million, or $0.06 per diluted share,
favorable income tax impact in the fourth quarter of 2007 from the ability
to recognize the benefit of foreign tax credits previously thought not to
be fully utilizable.
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March
31,
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December
31,
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|||||||
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2008
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2007
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Assets
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||||||||
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Current
assets:
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||||||||
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Cash
and investments in marketable securities
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$ | 1,994 | $ | 2,235 | ||||
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Receivables,
net
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3,301 | 3,093 | ||||||
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Inventories,
net
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1,655 | 1,459 | ||||||
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Other
current assets
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746 | 786 | ||||||
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Total
current assets
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7,696 | 7,573 | ||||||
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Property,
plant, and equipment, net
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3,851 | 3,630 | ||||||
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Other
assets
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1,781 | 1,932 | ||||||
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Total
assets
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$ | 13,328 | $ | 13,135 | ||||
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Liabilities
and Shareholders’ Equity
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||||||||
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Current
liabilities:
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||||||||
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Accounts
payable
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$ | 907 | $ | 768 | ||||
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Accrued
employee compensation and benefits
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463 | 575 | ||||||
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Other
current liabilities
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1,112 | 1,068 | ||||||
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Total
current liabilities
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2,482 | 2,411 | ||||||
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Long-term
debt
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2,624 | 2,627 | ||||||
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Other
liabilities
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1,060 | 1,137 | ||||||
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Total
liabilities
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6,166 | 6,175 | ||||||
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Minority
interest in consolidated subsidiaries
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100 | 94 | ||||||
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Shareholders’
equity
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7,062 | 6,866 | ||||||
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Total
liabilities and shareholders’ equity
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$ | 13,328 | $ | 13,135 | ||||
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(Unaudited)
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Three
Months Ended
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||||||||
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March
31
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||||||||
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2008
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2007
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|||||||
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Capital
expenditures
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$ | 392 | $ | 303 | ||||
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Depreciation,
depletion, and amortization
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$ | 164 | $ | 131 | ||||
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Three
Months Ended
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||||||||||||
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March
31
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December
31
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Revenue
by geographic region:
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2008
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2007
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2007
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||||||||
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Completion
and Production:
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North America
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$ | 1,169 | $ | 1,062 | $ | 1,206 | ||||||
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Latin America
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243 | 166 | 205 | |||||||||
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Europe/Africa/CIS
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433 | 377 | 508 | |||||||||
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Middle
East/Asia
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346 | 239 | 370 | |||||||||
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Total
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2,191 | 1,844 | 2,289 | |||||||||
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Drilling
and Evaluation:
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North America
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693 | 610 | 662 | |||||||||
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Latin America
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266 | 238 | 285 | |||||||||
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Europe/Africa/CIS
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525 | 406 | 551 | |||||||||
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Middle
East/Asia
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354 | 324 | 392 | |||||||||
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Total
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1,838 | 1,578 | 1,890 | |||||||||
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Total
revenue by region:
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North America
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1,862 | 1,672 | 1,868 | |||||||||
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Latin America
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509 | 404 | 490 | |||||||||
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Europe/Africa/CIS
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958 | 783 | 1,059 | |||||||||
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Middle
East/Asia
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700 | 563 | 762 | |||||||||
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Operating
income by geographic region (excluding
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||||||||||||
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Corporate and
Other):
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||||||||||||
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Completion
and Production:
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||||||||||||
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North America
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$ | 317 | $ | 322 | $ | 335 | ||||||
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Latin America
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66 | 38 | 48 | |||||||||
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Europe/Africa/CIS
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72 | 71 | 90 | |||||||||
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Middle
East/Asia
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74 | 46 | 98 | |||||||||
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Total
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529 | 477 | 571 | |||||||||
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Drilling
and Evaluation:
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||||||||||||
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North America
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174 | 167 | 162 | |||||||||
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Latin America
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41 | 36 | 50 | |||||||||
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Europe/Africa/CIS
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103 | 78 | 117 | |||||||||
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Middle
East/Asia
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66 | 81 | 74 | |||||||||
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Total
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384 | 362 |
403
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|||||||||
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Total
operating income by region:
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||||||||||||
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North America
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491 | 489 | 497 | |||||||||
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Latin America
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107 | 74 | 98 | |||||||||
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Europe/Africa/CIS
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175 | 149 | 207 | |||||||||
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Middle
East/Asia
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140 | 127 | 172 | |||||||||
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Three
Months Ended
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Three
Months Ended
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|||||||||||||||
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March
31, 2008
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December
31, 2007
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Operating
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After
Tax
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Operating
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After
Tax
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|||||||||||||
|
Income
|
per
Share
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Income
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per
Share
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|||||||||||||
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Completion
and Production:
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||||||||||||||||
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Gain on sale of joint venture
interest
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$ | 35 | $ | 0.02 | $ | – | $ | – | ||||||||
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Drilling
and Evaluation:
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Impairment of oil and gas
property
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(23 | ) | (0.02 | ) | (34 | ) | (0.02 | ) | ||||||||
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Three
Months Ended
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Three
Months Ended
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|||||||||||||||
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March
31, 2008
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December
31, 2007
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|||||||||||||||
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Operating
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After
Tax
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Operating
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After
Tax
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|||||||||||||
|
Income
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per
Share
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Income
|
per
Share
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|||||||||||||
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North
America:
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||||||||||||||||
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Gain on sale of joint venture
interest
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$ | 35 | $ | 0.02 | $ | – | $ | – | ||||||||
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Middle
East/Asia:
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Impairment of oil and gas
property
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(23 | ) | (0.02 | ) | (34 | ) | (0.02 | ) | ||||||||
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Three
Months Ended
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||||||||
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North
America
|
March
31, 2008
|
December 31, 2007
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||||||
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Revenue
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$ | 1,862 | $ | 1,868 | ||||
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As
reported operating income
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$ | 491 | $ | 497 | ||||
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Effect of gain on sale of
joint venture interest (a)
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(35 | ) | – | |||||
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Adjusted
operating income
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$ | 456 | $ | 497 | ||||
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As
reported operating margin (b)
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26.4 | % | 26.6 | % | ||||
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Adjusted
operating margin (b)
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24.5 | % |
26.6
|
% | ||||
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Three
Months Ended
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||||
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Non-North
America
|
March
31, 2008
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Revenue
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$ | 2,167 | ||
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As
reported operating income
|
$ | 422 | ||
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Effect of impairment of oil
and gas property (a)
|
23 | |||
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Adjusted
operating income
|
$ | 445 | ||
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As
reported operating margin (b)
|
19.5 | % | ||
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Adjusted
operating margin (b)
|
20.5 | % | ||
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(a)
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Management
believes it is important to point out to investors that included in
operating income are a gain on the sale of a joint venture interest and an
impairment charge related to an oil and gas property in the first quarter
of 2008, because investors have indicated to management their desire to
understand the current drivers and future trends. The
adjustment removes the effect of the gain on sale of the joint venture
interest and the impairment of the oil and gas
property.
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(b)
|
As
reported operating margin is calculated as: “As reported operating income”
divided by “Revenue.” Adjusted operating margin is calculated
as: “Adjusted operating income” divided by
“Revenue.”
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HALLIBURTON
COMPANY
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Date: April
22, 2008
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By:
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/s/ Bruce A. Metzinger |
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Bruce
A. Metzinger
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Assistant
Secretary
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