Petroleo Brasileiro S.A. - Petrobras (PBR)

[lecorb]

PBR:Outside North America, Halliburton's international operations remain mixed

Moody's Global Credit Research - 23 Sep 2014
Outside North America, Halliburton's international operations remain mixed. In Latin America, revenues fell 7% in the first half of 2014 compared to the year-ago period with operating income down over 23%. The outlook heading into 2015 remains challenging given project delays in Mexico (Pemex, A3 stable) and Brazil (Petrobras, Baa1 negative) with the prospects for comprehensive energy reform providing a potential positive catalyst over the longer-term. Somewhat offsetting the extended headwinds in Latin America, Halliburton's operations in the Eastern Hemisphere continue to exhibit positive trends led by increased activity in Saudi Arabia. Still, the potential for activity disruptions or extended project delays in Iraq and Russia raise execution risk over the next 12-18 months. The rising political tensions in these regions have had a minimal impact on Halliburton's financial results through the first half of 2014, and management remains steadfast on executing its long-term business strategy focused on its three pillar approach to capitalize on growth opportunities across mature fields, unconventional resource and deepwater plays. Less