Boston, MA 04/23/2014 (wallstreetpr) – Halliburton Company (NYSE:HAL), Texas based company announced its results of 1Q2014. The result it posted beats the estimates of the street. Halliburton Company is an oilfield service provider. The main area of working is North America, but in recent past HAL has started exploring in other markets also.
Better Days Ahead:
HAL in its statement to its shareholders stated that its the revenue will grow as the drilling actives in North America will increase as there is a robust demand for oil & natural gas. Earlier the drilling activities had fallen in North America as the natural gas prices had taken a beating thus increasing the competition between the oilfield service providers for any contract.
Halliburton Company (NYSE:HAL) is also upbeat about the drilling activity onshore the U.S, which will be helpful in countering the fall in drilling activities, in Canada around spring.
Increasing their activities in other markets has helped Halliburton Company to offset losses in their North America as the lower prices for pressure drilling and harsh weather has created a logistical nightmare also increasing the logistics cost and putting pressure on their profit margins.
Halliburton Company is a having a good presence in the U.S, but now it is also showing good presence in the Middle East, Asia region, Europe and Africa.
The International markets helped the company to show good set of number as revenues from these markets rose 9 percent, 21 percent jump was seen in the operating income. The other Latin American market saw subdued incomes as the drilling activities have gone down; pushing down the operating income by 8 percent.
Halliburton Company (NYSE:HAL) had its share of misfortunes also, working as a contractor for BP plc (ADR) (NYSE:BP) which is nthe owner of that well, while drilling in that well an accident happened, causing oil spill in Gulf of Mexico in 2010. HAL in its last quarter had to include a per-tax charge of $1 billion relating to the oil spill in Gulf of Mexico.