Halliburton shares went down over 6% following a disappointing fourth-quarter loss.
Halliburton announced today that fourth quarter 2004 income from continuing operations was $183 million, or $0.41 per diluted share.
According to a Reuters article, “The Houston-based company, whose KBR engineering and construction unit is under investigation by the U.S. Department of Justice for alleged overbilling on fuel and food service in Iraq, posted a net loss for the fourth quarter of $201 million, or 45 cents per share. That compared with a net loss of $947 million, or $2.17 a share, a year ago when it was hit with higher charges related to its settlement of asbestos claims.”
Net loss for the quarter was $201 million, or $0.45 per diluted share, and included a loss from discontinued operations of $384 million, or $0.86 per diluted share. The loss from discontinued operations resulted primarily from the fourth quarter revaluation charge arising from the increase in the value of the 59.5 million shares of Halliburton common stock that have subsequently been contributed to the trust for the benefit of asbestos claimants.
Consolidated revenue was $5.2 billion in the fourth quarter 2004, down 5% from the fourth quarter 2003. This decrease was largely attributable to lower activity on government services projects in the Middle East in KBR, and was partially offset by record quarterly revenue in the Energy Services Group (ESG).
“The fourth quarter was a busy and important one for the future of Halliburton,” said Dave Lesar, chairman, president and chief executive officer of Halliburton. “We ended our asbestos exposure. We completed the restructuring of KBR into two business segments, and achieved significant milestones on each of our three remaining offshore lump sum construction contracts, which significantly reduces our risk exposure on these projects.”
Consolidated operating income was $349 million in the fourth quarter 2004 compared to $303 million in the fourth quarter 2003. Impacting fourth quarter 2004 operating income was a $33 million loss for two integrated solutions projects in southern Mexico, a $22 million charge, as previously announced, related to the restructuring of KBR, a $14 million gain related to the sale of ESG’s surface well testing (SWT) operations, and an $11 million charge for an intellectual property settlement related to the sale of Subsea 7.
Murdok | Breaking eBusiness News
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