Name: Halliburton Co. (NYSE:HAL) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Halliburton Co., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Services	18,444)	15,408)	11,140)	17,482)	25,039)
Product sales	5,551)	5,212)	4,747)	6,151)	7,831)
Revenue	23,995)	20,620)	15,887)	23,633)	32,870)
Cost of services	(16,591)	(14,213)	(11,253)	(15,900)	(20,959)
Cost of sales	(4,418)	(4,142)	(3,770)	(5,213)	(6,571)
Cost of services and product sales	(21,009)	(18,355)	(15,023)	(21,113)	(27,530)
Gross profit	2,986)	2,265)	864)	2,520)	5,340)
Merger-related costs and termination fee	—)	—)	(4,057)	(308)	(17)
Impairments and other charges	(265)	(647)	(3,357)	(2,177)	(129)
General and administrative	(254)	(256)	(228)	(200)	(292)
Activity related to the Macondo well incident	—)	—)	—)	—)	195)
Operating income (loss)	2,467)	1,362)	(6,778)	(165)	5,097)
Interest expense	(598)	(705)	(698)	(463)	(396)
Interest income	44)	112)	59)	16)	13)
Interest expense, net of interest income	(554)	(593)	(639)	(447)	(383)
Other, net	(99)	(87)	(208)	(324)	(2)
Income (loss) from continuing operations before income taxes	1,814)	682)	(7,625)	(936)	4,712)
Income tax (provision) benefit	(157)	(1,131)	1,858)	274)	(1,275)
Income (loss) from continuing operations	1,657)	(449)	(5,767)	(662)	3,437)
Income (loss) from discontinued operations, net	—)	(19)	(2)	(5)	64)
Net income (loss)	1,657)	(468)	(5,769)	(667)	3,501)
Net (income) loss attributable to noncontrolling interest	(1)	5)	6)	(4)	(1)
Net income (loss) attributable to company	1,656)	(463)	(5,763)	(671)	3,500)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The financial performance from 2014 to 2018 is characterized by a severe contraction in revenue and profitability peaking in 2016, followed by a steady recovery phase. Total revenue declined from 32,870 million US$ in 2014 to a low of 15,887 million US$ in 2016, representing a reduction of approximately 51.7%. However, a recovery trend emerged thereafter, with revenue increasing to 23,995 million US$ by the end of 2018.

Revenue Composition and Trends: Revenue is driven primarily by services, which mirrored the overall downward and subsequent upward trend. Services revenue fell from 25,039 million US$ in 2014 to 11,140 million US$ in 2016 before rebounding to 18,444 million US$ in 2018. Product sales followed a similar pattern, though on a smaller scale, dropping from 7,831 million US$ in 2014 to a low of 4,747 million US$ in 2016 and recovering to 5,551 million US$ by 2018.
Gross Profitability and Cost Management: Gross profit experienced a sharp decline, falling from 5,340 million US$ in 2014 to 864 million US$ in 2016. This compression was driven by the significant drop in top-line revenue, as the cost of services and product sales did not decrease at the same rate as revenue. By 2018, gross profit recovered to 2,986 million US$, although it remained well below 2014 levels.
Operating Income and Non-Recurring Charges: Operating income exhibited extreme volatility, shifting from a profit of 5,097 million US$ in 2014 to a substantial operating loss of 6,778 million US$ in 2016. This precipitous decline was largely attributable to non-recurring items, specifically merger-related costs and termination fees of 4,057 million US$ and impairments and other charges of 3,357 million US$ in 2016. General and administrative expenses remained relatively stable throughout the period, fluctuating between 200 million and 292 million US$.
Net Income and Bottom-Line Recovery: Net income attributable to the company mirrored the operating trend, moving from a profit of 3,500 million US$ in 2014 to a net loss of 5,763 million US$ in 2016. The company remained in a net loss position through 2017 (-463 million US$) before returning to profitability in 2018 with a net income of 1,656 million US$.
Interest and Financial Obligations: Net interest expense remained a consistent burden, ranging from 383 million US$ in 2014 to a peak of 639 million US$ in 2016. This expense contributed to the continued net loss in 2017 even after operating income had returned to positive territory (1,362 million US$).

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