Halliburton said it earned a $1.7 billion profit last year, including $668 million in the fourth quarter, swinging from losses in 2017, Halliburton reported Tuesday. Annual revenues climbed 17 percent to $24 billion from $20.6 billion in 2017.
The company said, however, that a plunge in oil prices, pipeline shortages and end-of-the year budget constraints among its oil and gas company customers in
North American revenues fell 11 percent from the third quarter, Halliburton said. Overall revenues were essentially flat compared to the previous period.
Oil prices fell 40 percent in the last three months of the year, plunging from about $76 a barrel in early October to about $42 in late December. In addition, with lack of pipeline capacity making it difficult to move oil from the
But Halliburton CEO
Finally, with the first of the new pipelines scheduled to go online in the second half of the year, many companies are likely to start completing wells in anticipation. “Many customers should go back to work during the second quarter to get production ready for the new pipelines,” Miller said.
Miller said he expects oil majors to stay the course on their 2019 budget plans, and large independents to keep their budgets consistent with a $50 per barrel levels. Small companies, he said, are expected to cut t their budgets the most aggressively but quickly ratchet them back up if market conditions improve.
Miller added that if oil prices rise, the company could boost its prices. But Halliburton isn’t counting on it. He said the company is trimming its 2019 capital spending compared to last year and will adjust its operations according to market conditions.
“We intend to invest effective and remain flexible in our cost structure,” Miller said.
Oil fell about 2 percent to $53.01 a barrel Tuesday. Halliburton’s stock fell 99 cents, or about 3 percent, to $31.26 cents a share.
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