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Halliburton Annual Report, Year Ended Dec 31, 1995

Filing Date
Filed March 11, 1996
Period End
December 31, 1995
Security
HAL
In the record · 2016–202610-K1110-Q338-K122

HAL filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 122 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Material agreement8-K · Mar ’20Mar ’20
  3. Leadership change8-K · May ’22May ’22
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 10-K filed March 11, 1996. Cited figures are marked; the original filing is the authoritative source.

Halliburton Company's 1995 Annual Report shows revenues of $5,698.7 milliona, up 3% from $5,510.2 million in 1994 but down 6% from $6,094.1 million in 1993.

Operating income rose to $383.2 millionb from $236.1 million in 1994, and net income was $168.3 million, or $1.47 per share, compared with $177.8 million in 1994. Net income was reduced by a $65.5 million loss from discontinued operations, which consists of the Insurance Services Group, after a $67.2 million after-tax charge tied to reserve increases at Highlands Insurance Group, Inc. (HIGI) and the company's exit from insurance. HIGI was spun off to shareholders on January 23, 1996.

Energy Services revenues rose 4% to $2,623.4 millionc and operating income reached $313.7 million, while Engineering and Construction Services revenues rose 3% to $3,075.3 million with operating income of $103.0 million. Approximately 78% of 1995 revenues came from the energy industry, and about 51% came from international activities. Engineering and Construction backlog stood at $4,601 million at December 31, 1995, versus $4,692 million a year earlier, with nearly 65% expected to be completed during 1996.

Management expects revenue growth in 1996 with some improvement in operating margins. Balance sheet and cash flow changes were significant. Cash and equivalents fell to $174.9 milliond from $375.3 million, mainly because of debt prepayments of $432.7 million, including redemption of the zero coupon convertible debentures for $390.7 million.

Operating cash flow increased to $632.0 million from $415.4 million. Total debt fell to 11% of total capitalization from 26% a year earlier. Shareholders' equity was $1,749.8 million, and the company paid $1.00 per share in dividends.

02—Key points

Key Highlights

  1. Revenues were $5,698.7 million in 1995, up 3% from 1994 but down 6% from 1993.
  2. Operating income was $383.2 million in 1995, compared with $236.1 million in 1994.
  3. Net income was $168.3 million, or $1.47 per share, after a $65.5 million loss from discontinued operations tied to the Insurance Services Group.
  4. Operating cash flow increased to $632.0 million from $415.4 million, and total debt fell to 11% of total capitalization from 26%.
  5. Energy Services revenues grew 4% to $2,623.4 million with operating income of $313.7 million; Engineering and Construction revenues grew 3% to $3,075.3 million with operating income of $103.0 million.
  6. Engineering and Construction backlog was $4,601 million at December 31, 1995, with nearly 65% expected to be completed during 1996.
  7. Management expects revenue growth in 1996 with some improvement in operating margins, and expects capital expenditures to continue increasing.

03—Questions

Frequently Asked Questions

  1. How did Halliburton perform financially in 1995?

    Revenues rose 3% to $5,698.7 million and operating income rose to $383.2 million from $236.1 million. Net income was $168.3 million, or $1.47 per share, after a $65.5 million loss from discontinued operations.

  2. What caused the loss from discontinued operations?

    The loss came from the Insurance Services Group. In the third quarter of 1995, Highlands Insurance Group, Inc. increased its loss and loss adjustment expense reserves, and the company took a total charge of $140.0 million before taxes, or $67.2 million after taxes. HIGI was spun off to shareholders on January 23, 1996.

  3. How did the company use its cash in 1995?

    Cash and equivalents fell to $174.9 million from $375.3 million, mainly because of $432.7 million in debt prepayments. This included redeeming the zero coupon convertible subordinated debentures for $390.7 million and the $42.0 million term loan.

  4. What is the outlook for the business?

    The company expects revenue growth in 1996 with some improvement in operating margins, and expects capital expenditures to continue increasing as new technologies are developed and deployed. It also cites risks from significant oil and gas price changes, world economic and political conditions, and embargoes against producing countries.

  5. How much of the business depends on the energy industry?

    In 1995, 78% of revenues came from products and services sold to the energy industry, including construction for that industry. The company also operates in over 100 countries, and about 51% of its consolidated revenues came from international activities.

04—Continue

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