Along with all manner of investigations into its construction-related activities and a string of claims that it has circumvented traditional bidding processes in obtaining some of its business in Iraq and other international locations, Halliburton
One result was a reduction in management's per-share earnings guidance for its first quarter. That guidance is now in the range of $0.49 to $0.54, versus the $0.59 consensus expectation. The result was a 5.9% dip to $30.50 on the day in the company's share price.
In announcing its reduced expectations, the company said, "During the first quarter, the Production Optimization and Fluid Systems Divisions of Halliburton's Energy Services Group have experienced reduced activity in North America. A significant portion of these lower than anticipated results is attributable to decreased drilling and completion activity in Canada and the northern United States."
I really am convinced, Fools, that this is a legitimate announcement and not an I-told-you-so attempt to demonstrate the declining status of North American energy activity. Last week Halliburton disclosed that, in order to be closer to the center of energy exploration and production activity, it would create a headquarters in Dubai. Much like Baker Hughes
So what should Fools think about the goings-on at Halliburton? My first response relates to the virtual dragging of the company through the (non-drilling) mud during the past few years. Most of the contentions of wrongdoing have related to its now spun-off KBR
My second response would be that while Halliburton does trade at a distinct discount to oil service giant Schlumberger
For related Foolishness:
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