For the quarter, Halliburton managed to generate reported income of $262 million, or $0.29 per share. These figures compare with $672 million, or $0.74 a share for the same quarter of 2008. Backing out $19 million, or $0.02 a share for employee separation costs in the most recent quarter, brings the per-share figure to $0.31, a nickel higher than analysts' consensus expectations. Last year's third quarter included a $15 million after-tax acquisition-related charge and the effects of hurricanes that amounted to $33 million after tax.
Halliburton is divided into two separate operating entities. Its completion and production unit increased its revenue for the quarter by $69 million from the second quarter. At the same time, the group's operating income slid ever so slightly on the basis of softness in several areas of the Western Hemisphere.
The drilling and evaluation unit increased its revenue by $25 million from the second quarter. The division was especially strong in Russia, the Caspian, Brazil, and the U.S., offsetting some weakness in the Middle East and Asia.
Among the company's success in the quarter was a $190 million contract with Petrobras
It appears that Halliburton has led off for the service group with solid results, especially sequentially. The company will be followed this week by Weatherford
So, by the end of the week we'll have a better handle on the strength of the sector.
My expectation is that commodity price improvements will benefit the group in the coming quarters, and that Fools' time would be well spent studying especially those companies that have something to contribute to the deepwater or the unconventional plays.