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  • Halliburton Company HAL reported second-quarter FY22 revenue growth of 36.9% year-over-year to $5.07 billion, beating the consensus of $4.70 billion.
  • Adjusted EPS improved to $0.49, above the consensus of $0.44.
  • Halliburton’s cash flows provided by operating activities year-to-date were $326 million, compared to $612 million a year ago. Free cash flow was $32 million.
  • The operating income decreased to $374 million (-13.8% Y/Y), and the margin contracted by 434 bps to 7.4%. The adjusted operating margin was 14.2%, up by 244 bps.
  • The company held cash and equivalents of $2.23 billion as of June 30, 2022.
  • Halliburton recorded a pre-tax charge of $344 million in the quarter as a result of decision to exit Russia due to sanctions.
  • Completion and Production revenue increased 24% Y/Y to $2.9 billion, and the corresponding operating income increased by 69% Y/Y to $499 million.
  • Drilling and Evaluation revenue increased by 12% Y/Y to $2.2 billion, and operating income decreased 3% Y/Y to $286 million.
  • “I expect the international markets will experience multiple years of growth, and I am confident that Halliburton is positioned to benefit more from this multi-year upcycle than ever before. We have a leading technology portfolio, the right geographic presence, and new service line opportunities that align perfectly with our strategy to deliver profitable international growth,” commented Jeff Miller, Chairman, President, and CEO.
  • “In North America, I expect Halliburton to uniquely maximize value in this strong, steadily growing, and all but sold-out market. Pricing gains across all product service lines supported significant sequential margin expansion in the second quarter.”
  • Price Action: HAL shares are trading higher by 1.66% at $29.33 on the last check Tuesday.

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