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Halliburton SWOT and PESTLE Analysis

ID : 52368753| Feb 2023| 15 pages

COMPANY PROFILE -Halliburton

Business Sector :Oil & Gas

Operating Geography :United States, Global

About Halliburton :

Halliburton is an American multinational energy firm which employs over fifty thousand people and has dual headquarters in Dubai and Houston. It operates in the petroleum and natural gas exploration and production domain in over 70 countries. It also offers digital and consulting energy solutions, volume optimizations and fluid systems amongst other services through its several subsidies. It has a strong corporate governance code and maintains high health, environment and safety standards within the firm. Its mission as a company identifies what it does today, why it does so and for whom. Its vision defines what it aspires to be like and gives it an image of success. As of early 2021, the company has 40,000 employees across all its offices. The company is ranked 211 in 2021 Fortune 500. On July 2021, the company was awarded with a contract to provide Production Chemicals and Associated Services for a large IOC in Oman.

Halliburton’s unique selling proposition or USP lies in being one of the world’s largest oil field service companies. Halliburton’s mission statement as per their annual report is “To achieve superior growth and returns for our shareholders by delivering technology and services that improve efficiency, increase recovery, and maximize production for our customers.”

Halliburton Revenue :


US $14,445 million (FY ended Dec 31st 2020) (year-on-year growth of -35.54%)
US $22,408 million (FY ended Dec 31st 2019)

Competitive Analysis of Halliburton

SWOT
PESTLE
The SWOT analysis of Halliburton is presented below:
Strengths
Weaknesses
1. Multiple product service lines (14) with Drilling, Production, Consulting being its key focus
2. Strong technology arm with heavy inclination towards continuous innovation
3. Worldwide operations in across 70 countries with end-to-end service right from locating hydrocarbons to optimizing production
4. Strong brand value and constantly rated as the top firms in the oil and gas service sector
1. Highly dependent on the international crude prices with volatility impacting its profitability
2. International sanctions and trade restrictions impacts business both in terms of product and technology
3. Negative profit margin, underperforming when compared to its key competitors
Opportunities
Threats
1. New Fracturing operations opportunities with high demand for Shale gas
2. Utilizing latest patented technology to identify new exploration fields in times of depleting resources through its Landmark Solution subsidiary
3. Increasing support to oil fields based deep in the ocean bedrock in the backdrop of rapidly depleting land-based oil wells
4. Mergers and Acquisitions will help diversify the business
1. Indirect threat to oil prices from shale fracking would result in operational losses
2. Increased competition in the oil and gas industry will wipe out the profitability
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Halliburton

 

Strength

1. Multiple product service lines (14) with Drilling, Production, Consulting being its key focus: Halliburton Company operates majorly in two segments – Completion and Production and Drilling and Evaluation segments. Completion and Production delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift and completion of products and services. Drilling and Evaluation provides field and reservoir modeling, drilling, evaluation and precise wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities. In 2020, Halliburton successfully sailed through the COVID-19 pandemic and maintained a strong balance sheet while improving on its cash flows. In 2020, Halliburton generated $1.1 billion cash flows, up from $0.91 billion in 2019. The increased cash flows signify better liquidity and lower capital expenditures which helps in preserving the financial stability of the company. They also achieved a 52% reduction in CAPEX requirements in 2020 compared to 2019.

2. Strong technology arm with heavy inclination towards continuous innovation: Halliburton maintains an active research and development program. Along with developing new products and processes, the program enhances products, processes and engineering standards to meet the changing demands of the customers including high pressure and high temperature surroundings. R&D has enabled the company to develop various new-fangled tools in 2017 such as GeometrixTM 4D Shaped Cutters, Sperry Drilling’s JetPulseTM and the Express KinectTM Wellhead Connection Unit. The high-speed telemetry service provided by the Sperry Drilling’s JetPulseTM has enhanced the decision making process in operations, while the efficiency and safety for multi-well fracturing operations has been improved by the Express KinectTM Wellhead Connection Unit. In 2017, 2016 and 2015, the company spent $360 million, $329 million and $487million, respectively on R&D. Halliburton 4.0 aims to accelerate digital expansion and integration by combining advanced software, hardware, AI, and machine learning to develop a new era of fuel. These technological innovations led to a 80% reduction in the time required for well designing and reduced the time required to run over 3000 field simulations to 3 hours.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

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Check Out Analysis of Other Relevant Companies

References used in Halliburton SWOT & PESTLE Analysis Report

1. Financial Highlights – HALLIBURTON - https://asr.halliburton.com/introduction/financial-highlights/

2. Oil and gas after COVID-19: The day of reckoning or a new age of opportunity? - https://www.mckinsey.com/industries/oil-and-gas/our-insights/oil-and-gas-after-covid-19-the-day-of-reckoning-or-a-new-age-of-opportunity

3. Halliburton Company (HAL) Valuation Measures and Financial Statistics - https://finance.yahoo.com/quote/HAL/key-statistics/

4. China’s gas production to double to 325 bcm in 2040 | Wood Mackenzie - https://www.woodmac.com/press-releases/chinas-gas-production-to-double-to-325-bcm-in-2040/

5. Halliburton Makes Splash in Deep Water — Saving Operator USD 1.2M - https://www.halliburton.com/en/resources/halliburton-makes-splash-deep-water-saving-operator-usd-12m

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Halliburton SWOT and PESTLE analysis has been conducted by Soumya Surya Adhikari and reviewed by senior analysts from Barakaat Consulting.

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