RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2016-05-05 18:05:00

HALLIBURTON VS U.S.: SENSELESSLY

HALLIBURTON VS U.S.: SENSELESSLY

Halliburton's chief executive has blamed an increasingly difficult US regulatory climate for the collapse of his company's $28bn bid for rival Baker Hughes, which was abandoned on Sunday.

Speaking to analysts on a call on Tuesday morning Dave Lesar, who has led Halliburton since 2000, said that although the two oil services groups had expected to face scrutiny from competition regulators, "things have changed a bit".

He also cited the "abrupt and deep downturn" in the oil services market, which meant that Halliburton would have been forced to make any disposals required by regulators at fire-sale prices.

Activity in the oil industry has continued to decline this year, with the number of rigs drilling for oil and gas onshore in the US today 23 per cent below its average in the first quarter.

The failure of the Baker Hughes deal means Halliburton has to pay a $3.5bn break fee, promised when the deal was agreed in November 2014.

Mr Lesar said it had become clear that, in spite of the break fee, "continuing to pursue the transaction was no longer in the best interest of our stockholders", because of "the elongated regulatory scrutiny ... the poor deal economics and the current market environment".

Antitrust lawyers say there are signs that the US administration has in recent years become more active in using the law to preserve competition.

The Department of Justice, which last month launched a legal action to stop Halliburton from buying Baker Hughes, moved to block 20 deals last year — four times as many as in 2005.

Mr Lesar said he believed the businesses Halliburton planned to sell after the acquisition were "more than sufficient" to meet the DoJ's concerns about the deal's impact on competition.

However, he said: "US antitrust approval of large complex business combinations, regardless of the industry, has become increasingly time intensive and difficult".

He was speaking as Halliburton reported underlying first-quarter net income of $64m, excluding one-off items, down 76 per cent from the equivalent period of 2015.

It also took a charge of $2.4bn for writing down the value of equipment, in particular its older pressure pumps used for hydraulic fracturing for shale oil and gas production.

Setting out Halliburton's plans now it had failed with its principal strategic objective, Mr Lesar said it planned to cut costs by $1bn per year on an annualised basis.

The company cut a further 6,000 jobs in the first quarter, bringing its total losses since the downturn began in the second half of 2014 to 33,000.

Mr Lesar said the rebound in oil prices from lows of about $27 per barrel in January and February to about $45 this week meant that the production companies that are Halliburton's customers were "marginally more optimistic".

There could be an upturn in activity in the second half of the year, which would probably begin in North America, he said, but customers were not yet making definite plans for drilling and completing more wells.

ft.com

-----

Earlier:

HALLIBURTON NET LOSS $2.4 BLN 

HALLIBURTON & BAKER HUGHES TERMINATION 

BAKER HUGHES NET LOSS $981 MLN 

HALLIBURTON CUTS 6,000 JOBS 

HALLIBURTON & BAKER HUGHES CONTEST

 

 

Tags: HALLIBURTON, USA, BAKER, HUGHES
Chronicle:
HALLIBURTON VS U.S.: SENSELESSLY
2022, June, 28, 11:44:00
6TH ANNUAL LNG SUMMIT USA
The 6th Edition of Wisdom’s Much Acclaimed Annual LNG Summit Will Be Held Live in Houston - PREPARING THE INDUSTRY FOR THE RISE IN DEMAND FOR LNG
HALLIBURTON VS U.S.: SENSELESSLY
2022, June, 28, 11:43:00
9TH INTERNATIONAL LNG CONGRESS LNGCON 2023
9th International LNG Congress (LNGCON 2023) 6-7 March, 2023 Link to the Congress website: https://bit.ly/3tXVmr7
HALLIBURTON VS U.S.: SENSELESSLY
2022, June, 28, 11:40:00
S.KOREAN NUCLEAR SUPPORT
South Korea’s new president, Yoon Suk-yeol, said on 22 June that in order to rebuild the nuclear industry that was “devastated by the previous administration”, the government will allocate KRW92.5 billion ($70 million) from the energy budget for the restoration of nuclear power generation capacity.
HALLIBURTON VS U.S.: SENSELESSLY
2022, June, 28, 11:35:00
U.S. SMR FOR ROMANIA
Romanian company Nuclearelectrica and NuScale will cooperate with the US Trade and Development Agency (USTDA) on a series of engineering and design activities and studies, as well further technical analyses of the Doicești site, a former thermal power plant site which has been identified as a potential location for the SMR plant.
HALLIBURTON VS U.S.: SENSELESSLY
2022, June, 28, 11:30:00
U.S. SOLAR POWER 25%
US Energy Information Administration reports a capacity factor of 25% for solar generation.
HALLIBURTON VS U.S.: SENSELESSLY
2022, June, 28, 11:25:00
AUSTRALIAN SMART ENERGY
As energy is of national importance, a national policy, national rules and regulations are necessary. At the same time, we are facing massive changes in the energy sector.
HALLIBURTON VS U.S.: SENSELESSLY
2022, June, 27, 11:45:49
OIL PRICE: BRENT NEAR $113, WTI ABOVE $107
Brent edged down 8 cents to $113.04 a barrel , WTI was at $107.38 a barrel, down 24 cents.
All Publications »