Halliburton "Proud" of Iraq Work

MarkG · November 7, 2003, 19:16

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Halliburton "Proud" of Iraq Work

Halliburton (NYSE: HAL) today reported third-quarter earnings that were boosted by its controversial no-bid contract in Iraq.

The world's second-largest oilfield services company (behind Schlumberger (NYSE:SLB)) earned $0.13 per share in the quarter, 40% lower than the same period last year. Income from continuing operations -- which excludes various charges -- came in at $0.32 per share, well ahead of last year's $0.22. Total revenue increased by 39% to $4.1 billion.

The work in Iraq contributed about $900 million to earnings, or $0.05 per share. The company -- once run by Vice President **** Cheney -- absorbed criticism after being awarded multi-billion contracts to help rebuild oil fields devastated in the war.

Today, CEO Dave Lesar fired back in a conference call. "We believe the criticism that has come our way is inaccurate, unfounded, and misleading," he said. "Frankly, when I see the allegations repeated day after day in the press, I'm offended."

Calling the attacks politically motivated, Lesar reminded investors that Halliburton is "uniquely qualified to take on this difficult assignment, and we will continue to bring all of our global resources to bear at this critical time in the Middle East. We have served the military for over 50 years and have no intention of backing down at this point. In short, we're extremely proud of the work that we're doing there."

The apolitical market didn't have much of a reaction, bidding the company's shares down about 1% today.

http://www.fool.com/News/mft/2003/mft03102914.htm

alva · November 7, 2003, 19:20

I'm surprised it took so long for this to reach 'Poly.
This story was on the news here at the beginning of this week.
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Well they really ought to be proud, me thinks, afterall they've done a wonderfull altruistic job..

Chemical Ollie · November 7, 2003, 19:21

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**** Cheney

I keep being amused by your language filter. How come Bush is allowed?

oedo · November 7, 2003, 19:42

Lonestar · November 7, 2003, 22:37

Shouldn't Mark be off marching up and down the square?

mrmitchell · November 8, 2003, 01:32

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"Frankly, when I see the allegations repeated day after day in the press, I'm offended."

Welcome to life, *******.

Anyone who is the CEO of a multinational billion dollar corporation who just managed to get several contracts and--completely unrelated--their former CEO is now Vice President--should not only expect criticism but already have his shields up.

Halliburton shareholders had oughta can him for a case of the Stupid, a disease that seems to be an occupational hazard of high-ranking jobs.

Jules · November 8, 2003, 01:47

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Originally posted by Lonestar
Shouldn't Mark be off marching up and down the square?

Nahh. Sergeant major let him skip it today so he could go to his piano lessons.

MarkG · November 8, 2003, 01:54

no, i've got to go church

PLATO · November 8, 2003, 03:04

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40% lower than the same period last year.

Gee...I guess it must be a conspiracy afterall

MichaeltheGreat · November 8, 2003, 03:35

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Originally posted by PLATO

Gee...I guess it must be a conspiracy afterall

Actually, the drop is mostly due to chargeoffs, and would have been a lot worse had Halliburton not gotten those contracts. That doesn't address the factual issue of whether the no-bid contracts were appropriate, but there is a definite basis to say that Halliburton's short term outlook benefitted very strongly from the recent Iraq contracts.

PLATO · November 8, 2003, 03:58

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Originally posted by MichaeltheGreat

Actually, the drop is mostly due to chargeoffs, and would have been a lot worse had Halliburton not gotten those contracts. That doesn't address the factual issue of whether the no-bid contracts were appropriate, but there is a definite basis to say that Halliburton's short term outlook benefitted very strongly from the recent Iraq contracts.

You are correct...$800 million in revenue certainly had to help. I guess the point that most people are overlooking is that Haliburton is one of a very few companies that could do what needs to be done. Not to mention the fact that they certainly not getting rich off of the contract.

Uncle Sparky · November 8, 2003, 06:17

Operation Halliburton continues to show the world why America is great !

Chemical Ollie · November 8, 2003, 19:46

Norwegian Statoil should had gotten the contract!

Then I could buy cheep oil to heat my house over the winter...