Halliburton 2015 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2015 Halliburton annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

30
OPERATING INCOME: Favorable Percentage
Millions of dollars 2015 2014 (Unfavorable) Change
Completion and Production $ 1,069 $ 3,670 $ (2,601) (71)%
Drilling and Evaluation 1,519 1,740 (221) (13)
Corporate and other (576) (184) (392) 213
Impairments and other charges (2,177) (129) (2,048) 1,588
Total operating income (loss) $ (165)$ 5,097 $ (5,262) (103)%
By geographic region:
Completion and Production:
North America $ 230 $ 2,618 $ (2,388) (91)%
Latin America 186 214 (28) (13)
Europe/Africa/CIS 280 389 (109) (28)
Middle East/Asia 373 449 (76) (17)
Total 1,069 3,670 (2,601) (71)
Drilling and Evaluation:
North America 228 598 (370) (62)
Latin America 254 217 37 17
Europe/Africa/CIS 243 300 (57) (19)
Middle East/Asia 794 625 169 27
Total 1,519 1,740 (221) (13)
Total operating income by region
(excluding Corporate and other):
North America 458 3,216 (2,758) (86)
Latin America 440 431 9 2
Europe/Africa/CIS 523 689 (166) (24)
Middle East/Asia 1,167 1,074 93 9
Consolidated revenue in 2015 decreased 28% compared to 2014, associated with widespread pricing pressure and
activity reductions on a global basis, primarily attributable to pressure pumping in North America and Europe/Africa/CIS.
Revenue outside of North America was 54% of consolidated revenue in 2015 and 46% of consolidated revenue in 2014.
We reported a consolidated operating loss of $165 million in 2015, as compared to operating income of $5.1 billion in
2014. This $5.3 billion decrease was primarily driven by a significant decline in pressure pumping activity and pricing declines
in North America as a result of the global downturn in the energy market. Also impacting consolidated operating income was
$2.2 billion of impairments and other charges recorded in 2015 and $308 million of costs related to the pending Baker Hughes
acquisition. See Note 3 to the consolidated financial statements for further information about impairments and other charges.
Completion and Production
Revenue declined $6.6 billion, or 32%, compared to 2014, with activity decreases across all regions, mainly North America.
•North America revenue dropped 39%, across most product service lines, mainly in the United States land market, as a
result of steep rig count declines, pricing concessions, and reduced stimulation activity.
•Latin America revenue decreased 18%, mainly due to reduced activity and pricing in Mexico, primarily associated with
pressure pumping services and production solution services, and decreased cementing activity in Colombia, Brazil, and
Ecuador.
•Europe/Africa/CIS revenue fell 20%, as a result of reduced well completion services and currency weakness in Norway,
lower pressure pumping services and currency weakness in Russia, a decrease in stimulation activity in Egypt, a reduction
in completion tools sales in Kazakhstan, and decreased pipeline and process services in the United Kingdom. These
reductions were partially offset by improved completion tool sales in Nigeria.