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2022-04-20 15:31

Halliburton Company Inc. stock closed 1.0% down on Tuesday after the company reported its financial results for the first quarter of 2022. Halliburton, which was founded in 1919, is one of the world's major suppliers of energy-related goods and services. Halliburton was the second largest oil field service business in the world in 2009.

Financial highlights
For the first quarter of 2022, the company generated a net income of $263 million or $0.29 per diluted share compared to a net income of $170 million or $0.19 per diluted share in the first quarter of 2021. In Q1 2022 the adjusted net income was calculated as $314 million, or $0.35 per diluted share, excluding impairments and other expenses, as well as a loss on the early extinguishment of debt.

In the first quarter of 2022, Halliburton's total revenue was $4.3 billion, up from $3.5 billion in the first quarter of 2021. However, the reported operating income for the first quarter of 2022, was $511 million, compared to $370 million in the same quarter of the previous year. And lastly the adjusted operating income in the first quarter of 2022 was $533 million, excluding impairments and other expenses.

Given the ongoing crisis, Halliburton took a pre-tax charge of $22 million in the first quarter of 2022, which was principally attributable to the write-down of all of its assets in Ukraine, including $16 million in receivables. This charge was recorded in the Company's condensed consolidated statement of operations for the three months ended March 31, 2022 under "Impairments and other charges."

Halliburton has redeemed $600 million of its $1 billion of 3.80% Senior Notes due November 2025. The notes were redeemed for $42 million, resulting in a loss of $42 million in premiums and unamortized expenditures.

Other Developments
Energean plc, an independent E&P firm focusing on developing resources in the Mediterranean and the North Sea, has granted Halliburton a study to evaluate the Prinos basin's carbon storage potential.
Ms. Tobi Young and Mr. Earl Cummings have been appointed to Halliburton's board of directors. The positions are effective as of February 23, 2022, and both will be up for election at the annual meeting on May 18, 2022.

CEO Jeff Miller said:

"I am pleased with Halliburton’s first quarter results. Our performance demonstrated the resilience of our unique strategy in action and the importance of our competitive positioning both in North America and international markets.”

The $37.20 billion company that trades at a PE multiple of 25.29 is up roughly 70% for the year in the stock market.