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HALLIBURTON 1997 FOURTH QUARTER UP 38 PERCENT
Dallas, Texas Halliburton Company (NYSE:HAL) today reports 1997 fourth quarter net income of $148.4 million ($ .56 per share diluted), an increase of 38 percent compared to the 1996 fourth quarter's earnings of $107.6 million ($ .43 per share diluted). The strong earnings growth was driven by substantially higher levels of profitability at both of Halliburton's business segments. Halliburton's 1997 fourth quarter revenues were $2.4 billion, 20 percent higher than the year earlier quarter.
For the full year of 1997, Halliburton's net income increased 51 percent to $454.4 million ($1.75 per share diluted) compared to 1996, while revenues increased 19 percent above 1996 results to $8.8 billion.
The Energy Services Group business segment's 1997 fourth quarter revenues reached $1.7 billion, 32 percent higher than the year earlier quarter. Each of the segment's four business units - Halliburton Energy Services, Brown &
Root Energy Services, Landmark Graphics Corporation and Halliburton Energy
Development - posted strong 1997 fourth quarter revenue gains. The growth was experienced worldwide. Fourth quarter 1997 revenues from activities in the United States increased 32 percent compared to a year ago, while international revenues increased 31 percent.
The Energy Services Group business segment's operating income for the 1997 fourth quarter was $226.7 million, 42 percent higher than the year ago period. The operating income is inclusive of a $20.5 million loss provision ($ .04 per share diluted after tax) in the 1997 fourth quarter, relating to a Brown & Root Energy Services (BRES) job in the Middle East. The operating margin for the segment, including the impact of the BRES provision, was 13.5 percent for the 1997 fourth quarter compared to 12.5 percent a year earlier. Higher operating income and margins resulted from a combination of increased levels of demand, a strengthened pricing environment, and an expanded sales mix of technology driven and value added products and services.
The Engineering and Construction Group business segment's 1997 fourth quarter revenues were $707.4 million, off one percent from a year earlier. Flat revenues were due, in part, to actions taken to withdraw from highway/paving, environmental, and certain types of engineering and construction activities, while focusing more resources on petroleum, chemical and forest products projects which should be more profitable in the long-term.
The Engineering and Construction Group segment's operating income doubled to $43.2 million, compared to the 1996 fourth quarter. The segment's operating income and margins are continuing to benefit from restructuring and other cost efficiency initiatives which have been implemented during the past year.
Dick Cheney, Halliburton Company's chairman of the board and chief executive officer, said, "Halliburton made excellent financial performance progress in 1997, and the company was also able to substantially improve its future outlook and competitive position through the execution of several significant strategic programs during the year."
"Some of the significant programs achieved in 1997 included the successful consolidation and restructuring of the Engineering and Construction Group business segment; the establishment of a new shared services organization in 1996 is now providing more cost effective functional services on a company-wide
basis; introduction of leading-edge technologies; completion of strategic acquisitions that further strengthen the company's technological position and
extend its market presence; and the establishment of a market leadership position in providing customers with single source life of the well capabilities."
Cheney concluded, "Halliburton will utilize its financial and strategic successes of 1997 as the foundation for driving continued growth and progress in 1998. I am optimistic about the coming year based on discussions with our petroleum industry customers and their plans for 1998. Also, Halliburton's engineering and construction business operations enter 1998 with a backlog totaling $6.9 billion, an increase of 43 percent from a year ago, which provides the company with excellent growth opportunities."
Halliburton Company is one of the world's largest diversified energy services, engineering, maintenance, and construction companies. Founded in 1919, Halliburton provides a broad range of energy services and products, industrial and marine engineering and construction services.
Contact
Guy T. Marcus
V.P. -Inv. Rel.
(p) 214.978.2691
Dirk Vande Beek
Media Relations
(p) 713.676.8097
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