Will Nobody Weep for Halliburton?
July 22, 2008
High oil prices mean record sales for the company paying Dick Cheney's pension, but spinning off KBR means lower profit:
Halliburton Co., the world's second- largest oilfield-services provider, said net income dropped 67 percent after the sale of the company's stake in engineering unit KBR inflated 2007 earnings.
Second-quarter profit fell to $507 million, or 55 cents a share, from $1.53 billion, or $1.62, a year earlier, Houston- based Halliburton said today in a statement. Excluding such items as the KBR gain, a legal settlement and a failed takeover bid, per-share profit rose to 68 cents from 63 cents, matching the average of 22 analyst estimates compiled by Bloomberg.
Halliburton jettisoned KBR last year, tightening its focus on oilfield work as surging crude prices spurred demand for exploration and production services. The company opened a Middle East headquarters in Dubai and added technology centers in Russia and Asia to expand its presence overseas, where services providers are benefiting as producers ratchet up oil spending.