Skip to content
AnalystLens

Halliburton Annual Report, Year Ended Dec 31, 1996

Filing Date
Filed March 28, 1997
Period End
December 31, 1996
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 28, 1997. Cited figures are marked; the original filing is the authoritative source.

Halliburton Company's 1996 annual report describes a company that provides energy services and engineering and construction services, operating in over 100 countries with about 60,000 employees at December 31, 1996.

Revenues rose to $7,385.1 milliona in 1996, up 26% from $5,882.9 million in 1995, and operating income was $417.9 million, including special charges of $85.8 million. Income from continuing operations was $300.4 million, or $2.38 per share, compared with $249.2 million, or $2.00 per share, in 1995. The Energy Group generated $4,286.3 million of revenue and $484.4 million of operating income, while the Engineering and Construction Group produced $3,098.8 million of revenue and $53.7 million of operating income.

The results reflect the October 1996 pooling-of-interests acquisition of Landmark Graphics Corporation, which was exchanged for about 10.2 million shares. Cash flow from operations was $452.0 millionb in 1996, down from $667.4 million in 1995, as working capital needs grew with higher revenues. Backlog stood at $4,840 million at December 31, 1996, versus $4,601 million a year earlier, and the company estimates nearly 65% of it will be completed during 1997.

Total debt was 10% of total capitalization at year-end 1996. Subsequent events include an offer for OGC International plc for approximately $117.9 millionc, with about 93% of shares tendered as of February 28, 1997, and the issuance of $125.0 million of 6.75% notes in February 1997. The filing flags risks including unsettled political conditions in operating countries, trade sanctions affecting markets such as Algeria, Nigeria, Colombia and Myanmar, and fluctuating oil and natural gas prices.

Management also notes that customers' 1997 spending plans may be constrained by recent declines in crude oil and natural gas prices. The company is a potentially responsible party at Superfund sites, and management believes liability at all but one site will not have a material adverse effect.

02—Key points

Key Highlights

  1. Total revenues rose to $7,385.1 million in 1996, versus $5,882.9 million in 1995 and $5,661.1 million in 1994.
  2. Operating income was $417.9 million in 1996, after special charges of $85.8 million; operating income before special charges was $503.7 million.
  3. Income from continuing operations was $300.4 million, or $2.38 per share, up from $249.2 million, or $2.00 per share, in 1995.
  4. Energy Group revenues were $4,286.3 million and operating income was $484.4 million; Engineering and Construction Group revenues were $3,098.8 million and operating income was $53.7 million.
  5. Backlog totaled $4,840 million at December 31, 1996, up from $4,601 million, with nearly 65% expected to be completed during 1997.
  6. Cash and equivalents ended 1996 at $213.6 million, and cash flow from operating activities was $452.0 million versus $667.4 million in 1995.
  7. The company issued $125.0 million of 6.75% notes in February 1997 and offered approximately $117.9 million for OGC International plc, with about 93% of shares tendered by February 28, 1997.

03—Questions

Frequently Asked Questions

  1. How did Halliburton perform financially in 1996?

    Revenues grew 26% to $7,385.1 million and income from continuing operations rose to $300.4 million, or $2.38 per share, from $249.2 million, or $2.00 per share, in 1995. Results were held down by special charges of $85.8 million, and the effective tax rate was 26% after credits of $43.7 million.

  2. What drove the growth in revenues and operating income?

    The Energy Group's revenues rose 19% to $4,286.3 million and its operating income rose 22% to $484.4 million, with the strongest margin gains in pressure pumping. The Engineering and Construction Group's revenues rose 36% to $3,098.8 million, mainly from pulp and paper and chemical activity and a U.S. Department of Defense support contract in Bosnia.

  3. What is the company's exposure to international operations?

    Approximately 55% of consolidated revenues and 66% of consolidated operating income came from international activities in 1996. The filing notes risks from unsettled political conditions, currency devaluations, and U.S. trade sanctions that restrict business in countries such as Cuba, Iran and Libya and could affect markets including Algeria, Nigeria, Colombia and Myanmar.

  4. What is the outlook for 1997?

    Customers have indicated they plan to increase spending in 1997, but recent declines in crude oil and natural gas prices may constrain their cash flow and cause some planned activities to be reduced or deferred. Nearly 65% of the year-end 1996 backlog of $4,840 million is expected to be completed during 1997.

  5. What significant transactions occurred around year-end 1996 and early 1997?

    The Landmark Graphics acquisition closed on October 4, 1996 in exchange for about 10.2 million shares. In January 1997 the company offered about $117.9 million for OGC International plc, and in February 1997 it issued $125.0 million of 6.75% notes due 2027, with holders able to require repayment on February 1, 2007.

04—Continue

← View all 10-K filings