Monday, July 18, 2011

Halliburton Takes Charges in Planned Theft of Libyan Oil

July 18, 2011, 3:57 PM ET

Halliburton Takes Charge On Libya Operations

Halliburton said Monday in its second quarter earnings report that its first quarter results were reduced by $46 million due to sanctions imposed on Libya.

A Halliburton facility in Port Fourchon, Louisiana is seen on April 8, 2011.The oil-services company, which reported net income for the first quarter of $511 million, said Libya was but one of the obstacles dragging on its international operations.

“The shutdown in Libya, project delays in Iraq, mobilization costs in Sub-Saharan Africa, and the sluggish market in the United Kingdom and Algeria have impacted the pace of recovery for our international results,” said Dave Lesar, who serves as chairman, president and chief executive of Halliburton, in the announcement.

Lesar did note, however, that international revenue overall had grown 8% in the second quarter from the prior period. Halliburton posted net income of $747 million, or $0.81 per diluted share, for the second quarter of 2011, it said in the Monday announcement.

Companies swooped into Libya in recent years, and found themselves rushing to abandon their operations following a February uprising that led to sanctions imposed by governments around the world, as well as a bombing campaign by the North Atlantic Treaty Organization. The U.S. on Friday recognized the rebels as the legitimate government of Libya, joining 30 other countries in doing so.

That recognition frees up more than $30 billion in Libyan assets frozen in U.S. financial institutions amid the sanctions regime. Among those sanctioned were the state’s National Oil Company, which did business with firms from around the world, such as Halliburton and Italian oil giant Eni SpA.

Eni has been in a public spat with Libya over its operations, and the Libyan regime days ago said it was kicking the company out of the country because of Italy’s support for the NATO bombing campaign.

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