FOR IMMEDIATE RELEASE Contact-Guy T. Marcus
July 23, 1996 Vice President-Inv. Rel.
(214) 978-2691
HALLIBURTON 1996 SECOND QUARTER EARNINGS INCREASE
DALLAS, Texas -- Halliburton Company (NYSE:HAL) today reported net income
of $67.1 million and earnings per share of $.58 per share for the 1996 second
quarter, increases of 19 percent and 18 percent, respectively, compared to the
1995 quarter. Excluding 1995 second quarter earnings from the company's
insurance business, which was spun-off to Halliburton shareholders at the
beginning of 1996, second quarter 1996 net income was 22 percent higher than the
prior year quarter. The higher 1996 quarterly earnings are primarily
attributable to substantial improvement by the company's Energy Services
business segment.
The Halliburton Energy Services business segment's 1996 second quarter
revenues improved to $721.5 million, an increase of 15 percent compared to the
1995 second quarter. Stronger natural gas business activities helped to increase
revenues in the United States by 18 percent, compared to last year's second
quarter, while international revenues were 12 percent higher.
Halliburton Energy Services' operating income increased to $92.1 million in
the 1996 second quarter, up 30 percent from a year earlier. Profitability
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improved in both the United States and the rest of the world. Operating margins
widened to 12.8 percent in the 1996 second quarter, compared to 11.3 percent a
year earlier.
The Engineering and Construction business segment, operated by the
Company's Brown & Root subsidiary, generated 1996 second quarter revenues of
$1,055.3 million, a 37 percent increase compared to the prior year quarter. The
strong increase resulted from activity relating to a number of substantial new
civil, government, petroleum and chemical, manufacturing and industrial, and
energy services projects. Revenues expanded 19 percent in the United States, but
the growth was principally driven by a 59 percent revenue increase in
international locations. International revenues now account for 53 percent of
the segment's total revenues.
Engineering and Construction's operating income totalled $26.4 million for
the 1996 second quarter. During the quarter, Brown & Root recorded $32 million
of operating income from a gain-sharing alliance for the successful results
generated from the BP Andrew project in the North Sea. The gain was partially
offset by a $16 million accrual for the impairment of the value of its equity
investment in the Dulles Toll Road. Operating income margins were also
constricted by increased bid proposal costs for work yet to be awarded, start-up
mobilization costs on new contracts and new multi-year contracts that have not
progressed far enough to recognize profits.
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Dick Cheney, Halliburton Company's chief executive officer, said, "In
addition to the company's strong second quarter earnings, substantial progress
was made on a number of other fronts that should contribute to future corporate
growth and shareholder value.
"During the quarter Energy Services installed the world's first
multi-lateral completion system featuring connectivity, isolation and access in
a single system. The system provides for more economical recovery of reserves.
This is one of a number of new technologies which hold significant future
promise.
"Brown & Root's project management of an alliance team contributed to first
oil flowing from the BP Andrew field in the North Sea in June, some seven months
ahead of schedule and about $125 million, or 22 percent, under the sanctioned
budget. This success has helped to open discussions on a wide range of other
alliances and integrated services contracts, some of which will come to fruition
this year.
"Also, during the second quarter Halliburton announced plans to acquire
Landmark Graphics Corporation, the leading supplier of integrated exploration
and production information systems and professional consulting services for the
petroleum industry. The strategic acquisition of Landmark will enable
Halliburton to deliver an increased array of integrated solutions to customers.
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"These are some of the many achievements which give me optimism about
Halliburton's opportunities for 1996 and the future."
Halliburton Company is one of the world's largest diversified energy
services, engineering, maintenance, and construction companies. Founded in 1919,
Halliburton provides a broad range of energy services and products, industrial
and marine engineering and construction services.
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HALLIBURTON COMPANY
Quarter Ended Six Months Ended
June 30 June 30
--------- --------- --------- ---------
1996 1995 1996 1995
--------- --------- --------- ---------
Millions of dollars except per share data
Revenues
Energy services $ 721.5 $ 629.6 $1,384.8 $1,198.6
Engineering and
construction services 1,055.3 768.0 2,053.4 1,472.9
--------- --------- --------- ---------
Total revenues $1,776.8 $1,397.6 $3,438.2 $2,671.5
========= ========= ========= =========
Operating income
Energy services $ 92.1 $ 71.0 $ 159.4 $ 123.3
Engineering and
construction services 26.4 33.3 48.7 49.0
General corporate (8.4) (7.3) (17.2) (13.6)
--------- --------- --------- ---------
Total operating income 110.1 97.0 190.9 158.7
Interest expense (5.8) (12.3) (10.7) (25.1)
Interest income 2.5 5.7 5.5 14.2
Foreign currency
gains (losses) (3.0) (1.6) (2.0) 3.1
Other nonoperating, net (0.6) (0.6) - (0.6)
--------- --------- --------- ---------
Income from continuing operations
before income taxes 103.2 88.2 183.7 150.3
Provision for
income taxes (36.1) (33.4) (65.1) (57.2)
--------- --------- --------- ---------
Income from continuing
operations 67.1 54.8 118.6 93.1
Income from discontinued
operations, net of
income taxes - 1.4 - 2.2
--------- --------- --------- ---------
Net income $ 67.1 $ 56.2 $ 118.6 $ 95.3
========= ========= ========= =========
Income per share: *
Continuing operations $ 0.58 $ 0.48 $ 1.03 $ 0.81
Discontinued operations - 0.01 - 0.02
Net income 0.58 0.49 1.03 0.83
Average common and common share
equivalents outstanding 115.6 114.4 115.5 114.4
* Per share amounts are based upon average number of common and common share
equivalents outstanding.
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FOR IMMEDIATE RELEASE Contact - Guy T. Marcus
July 25, 1996 Vice President-Inv. Rel.
(214) 978-2691
HALLIBURTON-CAIRN ENERGY CONTRACT-TO-PRODUCE
DALLAS, Texas -- Halliburton Company (NYSE-HAL) announced today that
Halliburton and Cairn Energy PLC have entered into a contract-to-produce
agreement to develop the Sangu natural gas field, located in Bangladesh's
offshore Block 16.
Cairn, as operator of Block 16, will form an integrated management team
with Halliburton to optimize field development and operations through their
combined expertise. Cairn and Halliburton have also entered into an agreement
which may widen the scope of their cooperation to areas outside Sangu. This
agreement includes the potential for a regional pipeline.
In order to align the interests of Halliburton and Cairn under the
contract-to-produce, Halliburton has also agreed to acquire a 25 percent
interest in the Sangu field. The Cairn group currently holds a 100 percent
interest in Block 16. In February 1996 Cairn announced that its first offshore
exploration well in Block 16, Sangu-1, tested gas from two zones at a rate of 82
Mmscfd. The natural gas flow rate is the highest recorded in the history of
Bangladesh. Subsequently, Cairn drilled an appraisal well, Sangu-2. These wells
confirmed the potential to develop Sangu. The field will supply natural gas for
the Bangladesh market with first gas targeted for production in 1998.
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The contract-to-produce agreement is conditional upon approvals by the
government of Bangladesh and PetroBangla, the state-owned oil and gas company.
Dick Cheney, Halliburton's chief executive officer, said, "This is an exciting
opportunity to support Cairn as its development and operations partner.
Halliburton Company is committed to adding value to our partner's assets through
the integration of both Brown & Root's engineering, construction and project
management capabilities and Halliburton Energy Services' subsurface expertise.
We are entering the Sangu field in line with our experience -- at the
development and production services level."
Bill Gammell, chief executive of Cairn, commented, "The strategic alliance
with Halliburton as Cairn's co-venturer and developer enables Cairn to draw on
additional resources and technical expertise, while enabling Cairn to
concentrate on adding further value through an active exploration program in
Bangladesh."
Cairn Energy PLC is an international exploration and production company
headquartered in Edinburgh, Scotland. Cairn's strategy for exploration focuses
on international opportunities, particularly in Far Eastern and South Asian
countries.
Halliburton Company is one of the world's largest diversified energy
services, engineering, maintenance, and construction companies. Founded in 1919,
Halliburton provides a broad range of energy services and products, industrial
and marine engineering and construction services.
# # #
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