Monday, July 23, 2012
According to Businessweek.com, Halliburton’s profits are falling, though sales are up, because of the recent fracking boom.
The company’s net income dropped from $739 million last year to $737 million this year.
“North America’s probably finding a bottom,” Stephen Gengaro, an analyst at Sterne Agee & Leach in New York who rates the shares a buy and owns none, said today in a telephone interview. “International has been a little bit better than we think.”
Fracking capacity in North America was expected to rise 28 percent in 2012. The industry grew 42 percent in 2011 according to Spears & Associates, an Oklahoma based consulting firm.
Operating profit margins for North America dropped 4.8 percentage points this year, due to higher material costs. A shortage of guar gum, an agricultural commodity used in fracking, has driven up prices more than expected.
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