(Halliburton, 24.Jan.2023) — Halliburton Company (NYSE: HAL) announced today net income of $656mn, or $0.72 per diluted share, for the fourth quarter of 2022. This compares to net income for the third quarter of 2022 of $544mn, or $0.60 per diluted share. Halliburton’s total revenue for the fourth quarter of 2022 was $5.6bn compared to total revenue of $5.4bn in the third quarter of 2022. Operating income was $976mn in the fourth quarter of 2022 compared to operating income of $846mn in the third quarter of 2022.
Total revenue for the full year of 2022 was $20.3bn, an increase of $5.0bn, or 33% from 2021. Operating income for 2022 was $2.7bn, and adjusted operating income was $3.1bn, excluding impairments and other charges, compared to operating income of $1.8bn for 2021.
“Halliburton’s execution in 2022 demonstrated the earnings power of our strategy, and I expect this earnings power to strengthen in 2023 and beyond. Both operating divisions delivered strong margins in the international and North America markets,” commented Jeff Miller, Chairman, President and CEO.
“I am pleased to announce that our Board has adopted a capital returns framework and an increase in our dividend to sixteen cents ($0.16) per share beginning this quarter. This capital returns framework, our dividend increase, and the share buy backs we made during the fourth quarter demonstrate Halliburton’s confidence in our business, customers, employees, and value proposition.
“I am confident in Halliburton’s strong outlook and ability to generate increased returns for shareholders. Halliburton’s exceptional financial performance is a clear result of executing our strategic priorities – to maximize value in North America, deliver profitable international growth and drive capital efficiency,” concluded Miller.
Completions and Production
Completion and Production revenue in the fourth quarter of 2022 was $3.2bn, an increase of $46mn, or 1%, when compared to the third quarter of 2022, while operating income was $659mn, an increase of $76 million, or 13%. These results were driven by weather related lower stimulation activity offset by improved pricing, service efficiency and activity mix in North America land, as well as higher completion tool sales and cementing activity globally.
Drilling and Evaluation
Drilling and Evaluation revenue in the fourth quarter of 2022 was $2.4bn, an increase of $179mn, or 8%, when compared to the third quarter of 2022, while operating income was $387mn, an increase of $62mn, or 19%. These results were due to increased drilling-related services, testing services, and year-end software sales internationally and higher project management activity in Mexico.
North America revenue in the fourth quarter of 2022 was $2.6bn, a 1% decrease when compared to the third quarter of 2022. This decrease was primarily driven by weather related lower stimulation activity and artificial lift activity in North America land. These decreases were partially offset by improved activity across multiple product service lines in the Gulf of Mexico.
International revenue in the fourth quarter of 2022 was $3bn, a 9% increase when compared to the third quarter of 2022.
Latin America revenue in the fourth quarter of 2022 was $945mn, an increase of 12% sequentially, due to higher activity across multiple product service lines in Mexico, higher completion tool sales in the region, increased pressure pumping services in Argentina, and improved well construction services in Colombia. Partially offsetting these increases was lower fluids activity in Guyana.
Europe/Africa revenue in the fourth quarter of 2022 was $657mn, an increase of 3% sequentially, primarily driven by higher completion tool sales, testing services, and well intervention services across the region, along with increased drilling-related services in West Africa. These increases were partially offset by lower activity in Norway and decreased pipeline services across the region.
Middle East/Asia revenue in the fourth quarter of 2022 was $1.4bn, a 10% increase sequentially, primarily resulting from higher drilling and evaluation services across the region, increased cementing activity in the Middle East, and higher completion tool sales in Saudi Arabia and United Arab Emirates. Partially offsetting these increases was lower completion tool sales in Qatar.
Other Financial Items
Halliburton’s board of directors has declared a 2023 first quarter dividend of sixteen cents ($0.16) per share on the Company’s common stock payable on 29 March 2023, to shareholders of record at the close of business on 1 March 2023.
Selective Technology & Highlights
- Halliburton entered into drilling and wells alliance agreements with Aker BP, Noble, and Odfjell Drilling to extend their alliance for another five-years. The jack-up alliance comprises Noble Corporation, Halliburton and Aker BP. The Semi Alliance comprises Odfjell Drilling, Halliburton and Aker BP. Through the last five years the Jack-up Rig Alliance and the Semi Rig Alliance have delivered over 100 wells on the Norwegian shelf.
- Halliburton announced a successful installation of the industry’s first single trip, electro-hydraulic wet connect in deepwater for Petrobras in Brazil – a significant achievement in downhole electric completion technology. The Halliburton Fuzion® EH electro-hydraulic downhole wet-mate connector helps increase well recovery factors by maintaining integrity of Halliburton’s SmartWell® completion systems throughout the well’s lifecycle.
- Halliburton introduced the NeoCem™ E+ and EnviraCem™ cement barrier systems as an expansion of their portfolio of high-performance, reduced Portland cement systems. NeoCem E+ cement contains a 50 percent or greater reduction of mass cement while EnviraCem cement contains a 70 percent or greater reduction of mass cement. Portland cement reduction in barrier systems helps customers lower carbon emission baselines and provides engineered systems with enhanced sheath performance.
- Halliburton introduced the BrightStar® look-ahead resistivity service, a novel solution that reveals the path ahead of the drill bit to enable proactive drilling decisions. The BrightStar service incorporates data, calculations, and visualization technology to reduce operational risks in unknown environments and provide operators higher confidence to avoid unwanted formation exits. The BrightStar service provides reservoir insight of the trajectory ahead and detects changes in formation resistivity, reducing the uncertainty of formation boundary positions.
- Halliburton introduced the FloConnect® Surface Automation Platform, a fully automated and scalable solution for efficient and safe surface well testing operations. An industry first, the FloConnect platform controls, measures, and analyzes surface well testing through automated workflows. The innovative platform facilitates a collaborative work environment and provides operators with superior well controllability, process safety, flow assurance, and emissions quantification. It also allows data access in real time, process monitoring, and control from a command center or remote location.
- Petrobras recognized Halliburton as its best supplier in the “Drilling and Completion Services” category. The award recognizes suppliers who presented a differentiated performance in the supply of goods and services in the year 2021 – 2022, considering the requirements of quality, HSE, management, delivery deadlines, compliance and integrity in the business carried out with Petrobras.
- Halliburton was named to the 2022 Dow Jones Sustainability Indices (DJSI), which recognizes the top 10% most sustainable companies per industry. The DJSI uses environmental, social and governance (ESG) criteria to measure and rank the performance of best-in-class companies selected for its list. When compared to its peers, Halliburton ranked in the 98th percentile among its peers and received high marks in the Human Capital Development, Risk & Crisis Management, and Business Ethics categories.
- Halliburton Labs announced it selected three new companies to participate in its collaborative environment to advance cleaner, affordable, and reliable energy. As Halliburton Labs participants, Matrix Sensors, Renew Power Systems (RPSi), and SunGreenH2 will receive access to a broad range of industrial capabilities, technical expertise, and mentorships to scale their respective businesses.
- Halliburton and Aker BP collaborated to develop Field Development Planning, a DecisionSpace® 365 solution to optimize the development of entire oil and gas fields. By automating the entire process, Halliburton and Aker BP aim to save time, optimize engineering efficiency, and increase the quality of field development. At the heart of that collaboration is Digital Well Program®, a DecisionSpace® 365 solution, which enabled engineers to minimize well design time from several weeks to a day. Halliburton’s solution can aggregate data from multiple sources and offer accurate proposals for the optimal development plan for a specific field based on, among other things, economics, technical capabilities, and CO2 emissions.
- Halliburton executed the first fully automated drilling run in Kuwait delivering the landing section in record time. The remotely controlled LOGIX® Autonomous Drilling Platform, in combination with other carefully selected tools, delivered multiple record-breaking results for the field, in addition to lower overall well construction costs for the customer.
- Halliburton recently completed its 400th FlexRite® -multibranch inflow control (MIC) system installation in the North Sea. This system allows a multilateral well to be completed with sand screens, swellable packers, inflow control devices (ICDs), and interval control valves (ICVs) to help increase reservoir exposure and maximize production from each multilateral leg. Production or injection can be managed and controlled at each individual lateral, independent of all other lateral legs.
- Halliburton announced its VersaFlex® Expandable Liner Hanger system was selected and installed more than 1,000 times in Norway over the past 17 years. VersaFlex technology helps operators in Norway reach new levels of operating efficiency by delivering purposed technology with distinctive service quality. Unlike typical liner hanger systems, VersaFlex has no packer element or slips, which increases reliability of running liners and other deployed solutions to depth.