Halliburton recently released its fourth quarter earnings report for 2014 and reported total revenues of $8.8 billion compared to the previous quarter’s $8.7 billion, according to The Bakken Magazine.
For both the third and fourth quarters of 2014, the company’s adjusted operating income was $1.4 billion. For the third quarter, the operating income was $1.6 billion. For the fourth quarter, the company’s operating income was $1.3 billion. Total revenue for the previous year was $32.9 billion, a 12 percent increase from the company’s earnings in 2013.
Halliburton’s total operating income for 2014 was $5.1 billion, up substantially from the $3.1 billion operating income for 2013. The company stated that the increase can mostly be attributed to increased onshore activity in the United States and operations in the Macondo Prospect.
In a press release, Halliburton chairman and CEO Dave Lesar said, “We delivered an excellent 2014, but it is clear that 2015 will be a challenging year for the industry. As a result of the weakening outlook, during the fourth quarter of 2014 we took a $129 million restructuring charge to temper the impact of anticipated activity declines.”
Lesar also commented on the impact of the current global oil price market by saying, “Halliburton has successfully weathered multiple industry cycles. We are confident that we have the right people, technology, and strategies in place to outperform throughout this cycle too, and emerge as a stronger company.”
Late last year, Halliburton entered into a merger agreement with Baker Hughes. The pending deal is valued at $34.6 billion in which Halliburton will acquire the entirety of Baker Hughes’ outstanding shares in a stock and cash transaction. The deal is expected to be finalized in the second half of 2015 pending approval by stockholders of each company, traditional closing conditions and regulatory approval. After the deal is finalized, stockholders of Baker Hughes will own roughly 36 percent of the incorporated entity.
In the past few weeks, both companies have announced layoffs in various branches. Baker Hughes reported on plans to reduce capital spending by 20 percent and the layoffs of approximately 7,000 employees. Martin Craighead, Baker Hughes CEO, said the moves were a result of the industry-wide slowdown. Halliburton recently confirmed layoffs in its Duncan branch and projects to cut 1,000 jobs across multiple regions in the coming months.