Tracking Halliburton’s revenues
In this article, we’ll discuss Halliburton’s (HAL) value drivers. From 4Q15 to 4Q16, Halliburton’s Drilling and Evaluation (or D&E) segment revenues declined 22%. However, on a quarter-over-quarter basis, the D&E segment registered a 5.8% revenue rise in 4Q16.
From 4Q15 to 4Q16, the Completion and Production (or C&P) segment’s revenues declined ~20%. You can read more about Halliburton’s valuation in Market Realist’s Halliburton Outperformed Market: What Analysts Are Saying Now.
Inside Halliburton’s operating income
The D&E segment’s operating income decreased 41% in 4Q16 over 4Q15 due primarily to a low rig count. HAL comprises 3.1% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). Please read more about HAL’s 4Q16 earnings in Halliburton: A Word on the 4Q16 Results.
The C&P segment’s operating income fell 41% in 4Q16 over 4Q15. This was primarily due to the effect of seasonality in pipeline and process services in many regions where HAL operates, reduced cementing activity in some parts of Europe and Asia, and fewer completion tools sales in the Europe-Africa-CIS region.
Halliburton’s net income
In fiscal 2016, Halliburton’s net loss deteriorated to $5.7 billion in 2016 compared to its $671 million net loss in 2015. In comparison, Superior Energy Services’s (SPN) net loss was $833 million, while Baker Hughes’s (BHI) net loss was $2.7 billion in fiscal 2016. Nabors Industries (NBR) recorded a $1.0 billion net loss in fiscal 2016.
Next, we’ll discuss how the US rig count affects HAL’s operations in North America.