biz.yahoo.com— Oil services giant Halliburton Co. will soon shift its corporate headquarters from Houston to the Mideast financial powerhouse of Dubai, chief executive Dave Lesar announced Sunday.
Mar 11, 2007View in Crawl 4
I was wondering if anyone would get this right. By the end of the month Halliburton will officially be split into two entirely separate companies. One will remain named Halliburton. <a class="user" href="http://finance.yahoo.com/q?s=hal">http://finance.yahoo.com/q?s=hal</a> This is the company that will be moving to Dubai. Their business is building and maintaining oil wells, and since that area of the world has the most oil wells, it makes a lot of sense.The second company, the spin-off, is named KBR (used to be Kellogg Brown Root) <a class="user" href="http://finance.yahoo.com/q?s=kbr.">http://finance.yahoo.com/q?s=kbr.</a> It will remain headquartered in Houston. Its business is government and civilian logistics contracting. This includes things like building the US army bases in Iraq, and running food supply and maintenance to US troops. This is the division that was involved in the overcharging scandal in Iraq. They also (somewhat notoriously) built Camp X-Ray at Guantanamo. One thing worth pointing out is that the oil well business is far, far more profitable than the government contracting business. The new Halliburton, which only builds and services oil wells, is about 10x (not an exaggeration) more profitable than the new KBR, which builds army bases. The idea that somehow the war in Iraq was started to enrich Halliburton shareholders is absurd. Building army bases was always Halliburton's LEAST profitable business line; eventually they got so much pressure from their own shareholders to get rid of this line of business that they spun off the company that did it. Just to give you an idea of the difference in scale, the new Halliburton is capitalized at around $30 billion. KBR is one tenth the size, at $3 billion. (Both companies are totally dwarfed by oil giants like Exxon Mobil at $400+ billion). I'm sure I'll be buried down to negative infinity for this post, even though it is a dry recitation of facts that anyone with an internet connection could verify. I just felt it was important that somewhere (anywhere), even in this lonely corner of the internet, someone got the story right.
""They have made over 4 billion on the war in Iraq.""No, they haven't.The company's quarterly financial results, filed late last month, show its work in Iraq — including a separate, competitively bid contract for oil-field work — garnered just $74 million in profit on about $2.4 billion in revenue for the first half of the year. That's a margin of about 3 percent, and it's about the best Halliburton has seen from the Iraq contracts, which are administered through its KBR engineering and construction unit.In fact, for all of last year, Halliburton's Iraq work generated a profit of $172 million, or just 6 percent of the company's operating income. And that was a banner performance. In the two previous years, profit on the Iraq work dipped as low as $78 million with a margin of a measly 1.1 percent. With the return Halliburton's gotten, it would have done more for its shareholders by investing in Treasury bills and generated far less controversy in the process.<a class="user" href="http://www.chron.com/disp/story.mpl/business/steffy/4135315.html">http://www.chron.com/disp/story.mpl/business/steffy/4135315.html</a>
Ok - when I first heard this story the title said it all - then the was redone to face the facts. The President or CEO (what ever that dude is) is moving there. The are not moving the headquarters - but sort of splitting it.. Getting away from taxes yes... Having to pay off the corrupt government - I'm sure he'll have to do that.. Quaility of life there - probably crappy... Whats the point - we're f**ked.. instead of just sitting here complaining about it - get off your asses and do something.. and throwing bricks doesn't solve s**t... Actually work your asses into government and move on up...
The Haliburton advisor better check to se if there is going to be PLUMBING and DRAINAGE in Dubai, except in the major hotels? It is just a place built on the sand. Or are the employees going to have painted chamberpots in their offices?
It's very possible that Halliburton knows America is moving toward Global Government and therefore knows it matters little where companies are located for tax concerns. They may be accumulating gains in the eventuality of that outcome which, at this point, may be welcome by the American people since all their jobs are gone anyway.Without global government, where could taxes come from otherwise?
digeratiprimeMar 12, 2007
@littlebylittle Ken Lay died last year.
diggdongMar 12, 2007
Basically, this means the largest military contractor cannot be thoroughly reviewed by the senate intelligence committee.
melmoth100Mar 12, 2007
I was wondering if anyone would get this right. By the end of the month Halliburton will officially be split into two entirely separate companies. One will remain named Halliburton. <a class="user" href="http://finance.yahoo.com/q?s=hal">http://finance.yahoo.com/q?s=hal</a> This is the company that will be moving to Dubai. Their business is building and maintaining oil wells, and since that area of the world has the most oil wells, it makes a lot of sense.The second company, the spin-off, is named KBR (used to be Kellogg Brown Root) <a class="user" href="http://finance.yahoo.com/q?s=kbr.">http://finance.yahoo.com/q?s=kbr.</a> It will remain headquartered in Houston. Its business is government and civilian logistics contracting. This includes things like building the US army bases in Iraq, and running food supply and maintenance to US troops. This is the division that was involved in the overcharging scandal in Iraq. They also (somewhat notoriously) built Camp X-Ray at Guantanamo. One thing worth pointing out is that the oil well business is far, far more profitable than the government contracting business. The new Halliburton, which only builds and services oil wells, is about 10x (not an exaggeration) more profitable than the new KBR, which builds army bases. The idea that somehow the war in Iraq was started to enrich Halliburton shareholders is absurd. Building army bases was always Halliburton's LEAST profitable business line; eventually they got so much pressure from their own shareholders to get rid of this line of business that they spun off the company that did it. Just to give you an idea of the difference in scale, the new Halliburton is capitalized at around $30 billion. KBR is one tenth the size, at $3 billion. (Both companies are totally dwarfed by oil giants like Exxon Mobil at $400+ billion). I'm sure I'll be buried down to negative infinity for this post, even though it is a dry recitation of facts that anyone with an internet connection could verify. I just felt it was important that somewhere (anywhere), even in this lonely corner of the internet, someone got the story right.
furryplanetMar 12, 2007
funny??? I wouldnt say funny... More like scary! But to each, there own. :D
hittnrunMar 12, 2007
""They have made over 4 billion on the war in Iraq.""No, they haven't.The company's quarterly financial results, filed late last month, show its work in Iraq — including a separate, competitively bid contract for oil-field work — garnered just $74 million in profit on about $2.4 billion in revenue for the first half of the year. That's a margin of about 3 percent, and it's about the best Halliburton has seen from the Iraq contracts, which are administered through its KBR engineering and construction unit.In fact, for all of last year, Halliburton's Iraq work generated a profit of $172 million, or just 6 percent of the company's operating income. And that was a banner performance. In the two previous years, profit on the Iraq work dipped as low as $78 million with a margin of a measly 1.1 percent. With the return Halliburton's gotten, it would have done more for its shareholders by investing in Treasury bills and generated far less controversy in the process.<a class="user" href="http://www.chron.com/disp/story.mpl/business/steffy/4135315.html">http://www.chron.com/disp/story.mpl/business/steffy/4135315.html</a>
closedcaptionMar 12, 2007
nixonrichard says the dumbest s**t on all the internets, hands down
ellisglMar 13, 2007
Ok - when I first heard this story the title said it all - then the was redone to face the facts. The President or CEO (what ever that dude is) is moving there. The are not moving the headquarters - but sort of splitting it.. Getting away from taxes yes... Having to pay off the corrupt government - I'm sure he'll have to do that.. Quaility of life there - probably crappy... Whats the point - we're f**ked.. instead of just sitting here complaining about it - get off your asses and do something.. and throwing bricks doesn't solve s**t... Actually work your asses into government and move on up...
hittnrunMar 13, 2007
Don't ever let the facts or truth get in your way.
chase001Mar 14, 2007
Congress better start subpoenaing their records before they are lost to them forever.
chatty82Mar 22, 2007
The Haliburton advisor better check to se if there is going to be PLUMBING and DRAINAGE in Dubai, except in the major hotels? It is just a place built on the sand. Or are the employees going to have painted chamberpots in their offices?
notifynealNov 6, 2007
i am also opening offices in the jebel ali free trade zone.
crocodylFeb 15, 2008
view halliburton's company profile <a class="user" href="http://www.crocodyl.org/wiki/halliburton">http://www.crocodyl.org/wiki/halliburton</a>
pbr90Aug 13, 2009
It's very possible that Halliburton knows America is moving toward Global Government and therefore knows it matters little where companies are located for tax concerns. They may be accumulating gains in the eventuality of that outcome which, at this point, may be welcome by the American people since all their jobs are gone anyway.Without global government, where could taxes come from otherwise?