Halliburton Moving Headquarters To Dubai

[Houston19514]

If you could stop being so literal for a second and reread the initial post of mine, you could see where it says, "LOOKS LIKE", never said it was an actual fact, but since you want to make mountains out of molehills, let's speculate further. Within a year Haliburton will shutdown some Houston offices. liqidating some jobs due to outsourcing and combine into one building, either on the Beltway by the airport or over on the southwest side of Beltway 8 near Bissonet. Downsizing, and paying handsomely to those willing to move to Dubai, where there new charter will be now.

Another reason you don't change your company charter over night is so you don't scare your stockholders half to death and make your stocks plunge at the opening bell.

Not saving alot on the taxes huh ? How much did Haliburton take in last year ? Let's just say for arguments sake they save 15% off total revenue, how many billions is that ?

Do you work for Haliburton or something ?

You take a move of one executive to Dubai and turn into a wholesale corporate relocation, liquidation, and Houston downsizing in order to avoid some taxes, and then you accuse me of making a mountain out of a molehill???? Very amusing.

Please explain to me how they are going to avoid that stock "plunge" by announcing the charter change a year from now, rather than now. If they are going to do that, the announcement will have to be made at some point in time.

Why am I not surprised that you now stoop to the time-honored tradition here at HAIF... if you don't like someone's facts and reasoning, attack their motive by asking if they work for the company being discussed?? Not that it's relevant to any facts, but No, I do not work for Halliburton or any of its subsidiaries and I have no pecuniary interest whatsoever in the company, direct or indirect. As always, I am only interested in the facts.

Be sure to post here and feel free to PM me when Halliburton goes through with their secret plan to re-charter and liquidate their Houston operations, per your speculation.

[MidtownCoog]

19514 works for Mr. Finger, among many others!

j/k

But we all know it's easier to pay bribes outside the USA. Shell, Exxon, Haliburton et. al. are quasi governements. Sometimes you have to cross the line even if you are being honest.

Ever try to secure a deal in Nigeria?

[Houston19514]

19514 works for Mr. Finger, among many others!

j/k

But we all know it's easier to pay bribes outside the USA. Shell, Exxon, Haliburton et. al. are quasi governements. Sometimes you have to cross the line even if you are being honest.

Ever try to secure a deal in Nigeria?

:-)

Quite true, and that can be a big problem for American companies, because other countries are not so fastidious about such things. But what does that have to do with this thread? Seriously.

Edited March 12, 2007 by Houston19514

[TJones]

:-)

Quite true, and that can be a big problem for American companies, because other countries are not so fastidious about such things. But what does that have to do with this thread? Seriously.

Merely speculatory about Haliburton's intentions my friend. I was serious about the question of employment though. Thought you could shed more light if you were employed by them. I am not employed by them either, so I have no light. You said, "You take a move of one executive to Dubai and turn into a wholesale corporate relocation", it's the friggin' CEO and the corporate headquarters ! ? HELLO ! They aren't moving Herbie Finklestien, the junior V.P. over valves and flanges for the new Uranium 238 Space Modulator ? Anywho, get your panties out of a bunch there.

As far as the stock plunging in a year at an announcement, you are not seeing the BIG PICTURE. Haliburton takes it's time with the transition to Dubai by slowly moving things around through the year. February was probably the end of their fiscal year, SO, they make the announcement NOW, at the beginning of the new year for them. I will sit back and watch it all unfold. Like I said though, if I am wrong, so be it. I will be glad that I was wrong, because I actually have a few clients and get more every month over there. I really don't need them to leave the Houston area AT ALL, or even downsize. Doesn't do me any good if they do.

Well lookey here ! I am by no means a fan of the Houston Barnacle, but this is a nice read.

http://www.chron.com/disp/story.mpl/front/4622059.html

Edited March 13, 2007 by TJones

[Ethanra]

Those evil big companies!!! Creating 100's of thousands high paying jobs for college educated people.... Those high paying jobs supporting small buisness across this city.... Bad big companies, pumping billions of dollars into the economy...

Edited March 13, 2007 by Ethanra

[MidtownCoog]

Haliburton has only had HQ in Houston a few years. They were in D/FW with most of thier office types in Houston.

And they still have to pay taxes (bribes) in Dubai.

And they also spun-off a number of units over the last few years so this is not that big of a surprise.

[houstonmacbro]

Man, look at their skyline!

Edited March 13, 2007 by houstonmacbro

[houstonmacbro]

Here's another view.

Yeah, but they are still raking in BILLIONS from the USA government (aka willing taxpayers) so what do they care.

Edited March 13, 2007 by houstonmacbro

[RedScare]

I don't know about you guys, but there's $18 Billion unaccounted for in Iraq, and numerous investigations and allegations of impropriety by KBR, the Halliburton subsidiary which got a slew of no-bid contracts. Democrats now control Congress, and have promised to get to the bottom of it. If I was CEO of Halliburton, I would find this to be a good time to move my office and myself to a shiny new office in a country without an extradition treaty with the United States.

But hey, that's just me.

[Guest danax]

I don't know about you guys, but there's $18 Billion unaccounted for in Iraq, and numerous investigations and allegations of impropriety by KBR, the Halliburton subsidiary which got a slew of no-bid contracts. Democrats now control Congress, and have promised to get to the bottom of it. If I was CEO of Halliburton, I would find this to be a good time to move my office and myself to a shiny new office in a country without an extradition treaty with the United States.

But hey, that's just me.

That sounds right to me. Dubai is a known criminal crossroads. Greasing the right palms and he could be as safe as Bin Laden (probably his buddy).

The next step should be Cheney starting to sell his Halliburton stock options.

[MidtownCoog]

Man, look at their skyline!

Even hell has its beauty.

[Saddleman]

NPR says it will be a dual HQ.

[TheNiche]

Here's another view.

Yeah, but they are still raking in BILLIONS from the USA government (aka willing taxpayers) so what do they care.

Let us focus upon this statement. First of all, let us assess the profits of KBR (no longer a subsidiary of Halliburton, which is supposed to be the focus of this thread, btw). From 2002 through 2004, KBR operated at a net loss each year. In fact, during those three years, they lost a sum total of $528 million. They finally turned around in 2005 and 2006; in those two years, they made a sum total of $308 million. So for the duration of the Iraq war to this point, they have lost money. This is much in contrast to the phrase "raking in BILLIONS".

In 2004, 2005, and 2006, the years of data provided on a particular income statement included in their most recent 10K, they have earned $351 million in operating income from their Government & Infrastructure division's Middle East operations. Is that a lot? Yes. It is not billions. That division's Middle East operations had $18.7 billion dollars in revenue during those three years, but if all they've been able to get out of that is $0.351 billion, that's a pre-tax rate of return of 1.9%. Pathetic.

It should also be borne in mind that the only impropriety is the manner in which Halliburton was chosen to be the contractor. Any notion that the execs are living the good life by riding the collective backs of the U.S. taxpayers is ridiculous. They're providing a service to the government for a rate of return at which it would've made more sense for them to invest in T-bills!

[KinkaidAlum]

Let us focus upon this statement. First of all, let us assess the profits of KBR (no longer a subsidiary of Halliburton, which is supposed to be the focus of this thread, btw). From 2002 through 2004, KBR operated at a net loss each year. In fact, during those three years, they lost a sum total of $528 million. They finally turned around in 2005 and 2006; in those two years, they made a sum total of $308 million. So for the duration of the Iraq war to this point, they have lost money. This is much in contrast to the phrase "raking in BILLIONS".

In 2004, 2005, and 2006, the years of data provided on a particular income statement included in their most recent 10K, they have earned $351 million in operating income from their Government & Infrastructure division's Middle East operations. Is that a lot? Yes. It is not billions. That division's Middle East operations had $18.7 billion dollars in revenue during those three years, but if all they've been able to get out of that is $0.351 billion, that's a pre-tax rate of return of 1.9%. Pathetic.

It should also be borne in mind that the only impropriety is the manner in which Halliburton was chosen to be the contractor. Any notion that the execs are living the good life by riding the collective backs of the U.S. taxpayers is ridiculous. They're providing a service to the government for a rate of return at which it would've made more sense for them to invest in T-bills!

The only problem there is that the big fellas at KBR certainly didn't take a hit. Sure, the company "lost money" but that doesn't mean that someone somewhere wasn't rolling in the dough.

[mrfootball]

These guys are crooks. Where there's smoke, there's fire and this country's been smoking since 9/11.

Here's a nice little documentary detailing our new 'private' army and the new paradigm in military contracting:

"Iraq for Sale"

[Pumapayam]

Doesn't Michael Jackons live there now?

[TheNiche]

The only problem there is that the big fellas at KBR certainly didn't take a hit. Sure, the company "lost money" but that doesn't mean that someone somewhere wasn't rolling in the dough.

???

Who was rolling in dough? What evidence do you have?

[Houston19514]

As far as the stock plunging in a year at an announcement, you are not seeing the BIG PICTURE. Haliburton takes it's time with the transition to Dubai by slowly moving things around through the year. February was probably the end of their fiscal year, SO, they make the announcement NOW, at the beginning of the new year for them. I will sit back and watch it all unfold. Like I said though, if I am wrong, so be it. I will be glad that I was wrong, because I actually have a few clients and get more every month over there. I really don't need them to leave the Houston area AT ALL, or even downsize. Doesn't do me any good if they do. Let's just hope you're not giving them corporate tax advice ;-)

Well lookey here ! I am by no means a fan of the Houston Barnacle, but this is a nice read.

http://www.chron.com/disp/story.mpl/front/4622059.html

Yes, indeed, lookey there:

"When asked if there would be layoffs among the firm's roughly 4,000 Houston employees, Norcross said, "absolutely not.""

"Dan Pickering, president of Houston-based Pickering Energy Partners cautioned from viewing the opening of the Dubai office as a first step in moving the entire company out of the United States. 'That would be a large distraction and wouldn't make sense, given that more than 50 percent of the company's business still comes from North America,' he said"

In other articles, there have been quotes from a number of investment and tax analysts, none of whom see any tax benefit whatsoever in the opening of an HQ office in Dubai.

[TJones]

Yes, indeed, lookey there:

"When asked if there would be layoffs among the firm's roughly 4,000 Houston employees, Norcross said, "absolutely not.""

HA! I remember an Exec. for Enron saying the exact same thing, I'll bet you were probably dealing with THAT Fortune 500 in the last 20 years also and were saying to yourself, "Eh, Enron will never fold, will it ?" Perhaps Haliburton is just gonna "redeploy" their workers within the coming months, just like Lesar is being "redeployed" to Dubai ?

50% of the business here, with no more room to grow. 38% of Haliburton business is in the Middle East, with TONS of potential for growth. Haliburton's future lies in Dubai, chief, as coog would say, "PRINT IT".

As far as "tax advice", I won't pretend to know what tax cuts are afforded to Fortune 500 companies here in the good ol' USA. I know enough though to get myself over $7k back every year.

You could be right, it may not be a tax advantage, it could very well be like Red Scare has speculated, and they are getting their house in order to avoid prosecution ?

Edited March 13, 2007 by TJones

[TheNiche]

50% of the business here, with no more room to grow. 38% of Haliburton business is in the Middle East, with TONS of potential for growth. Haliburton's future lies in Dubai, chief, as coog would say, "PRINT IT".

My forecast: Houston employment remains stable (subject to market conditions), and corporate growth in the eastern hemisphere causes Halliburton-related employment growth in Dubai and in smaller regional offices. The charter of the corporation may or may not shift overseas in the future, but the marginal impact on Houston will be almost nil.

[houstonmacbro]

My forecast: Houston employment remains stable (subject to market conditions), and corporate growth in the eastern hemisphere causes Halliburton-related employment growth in Dubai and in smaller regional offices. The charter of the corporation may or may not shift overseas in the future, but the marginal impact on Houston will be almost nil.

I don't expect this to affect Houston employment either.

[MyEvilTwin]

Houston just got Direct Energy, isn't that Fortune 500?

Nope, Direct Energy is a wholly owned subsidiary of an English company (Centrica), which means it's not Fortune 500, even though it's big enough to be. One could always hope for an IPO, but until then...

[musicman]

Halliburton to add 13,000 jobs, some in Houston

Halliburton Co. plans to add 13,000 new jobs in 2007, including an unspecified number in Houston, the company has told its U.S. employees in an internal memo.

The word comes just days after the Houston-based firm said it will open a new corporate headquarters in Dubai, which led to speculation that the move is a prelude to the company's exit from the United States.

But the memo, which was first obtained by the Associated Press and later confirmed by the company, appeared to counter that idea.

"It is our expectation that our planned growth for 2007 to 2009 will mean that we will hire more than 13,000 new employees in 2007. This will include growth in our Houston employment numbers," said the memo Tuesday from Andy Lane, Halliburton's chief operating officer

article

[713 To 214]

What happens after 2009?

[musicman]

What happens after 2009?

is it important? many companies have periods of attrition and hiring. all companies go through periods of ups and downs. the point is the title of the thread is "big loss for houston! halliburton moving hq to dubai" isn't really accurate. sounds like there won't be a big loss at all.

[feufoma]

Much ado about nothing... This event really isn't that big of a surprise to anyone in the energy industry. I work for the North American subsidiary of the largest oil company in the world (market cap $788bln). Halliburton et al. have been camped outside the front door of our parent company for decades. This is just another example of a company moving where the majority of new business development is taking place for that particular company. Do the overall industry dynamics change in such a way that will have an impact on Houston? Yes. Will such an impact be negative per se? No.

If anything this should open up further critical developmental ties with the Middle East region and Houston. Case in point, Emirates will be offering a direct connection between Houston and Dubai. It's interesting to see how much hyperbole is being spent on this 'news.' Really, it's become quite the pedestrian affair...

[Guest Plastic]

Whoa, it's never good to lose a Fortune 500 company. They help bolster Houston's rep, among other things.

With respect to the number of jobs, Halliburton's HQ occupies only 2 floors of space in 5 Houston Center downtown. Not high-density floors. Shoot, another one bites the dust.

Haliburton has several buildings doesn't it. The head is in ast Houston a mile from DOwntown isn't it?

[Houston19514]

Haliburton has several buildings doesn't it. The head is in ast Houston a mile from DOwntown isn't it?

Yes, they have several buildings around town. No, their hq is not in east Houston. The HQ is downtown in 5 Houston Center, as Bach said.

[houstonfella]

Dubai is HOT and our law firm is going to open an office there in the near future. Halliburton will still maintain a HUGE presence in Houston and it needs Houston more than Houston needs Halliburton. The Enron failure paints a picture of Houston: we will move on and this city will progress. Nuff said.

Edited March 14, 2007 by houstonfella

[Houston1stWordOnTheMoon]

Much ado about nothing... This event really isn't that big of a surprise to anyone in the energy industry. I work for the North American subsidiary of the largest oil company in the world (market cap $788bln). Halliburton et al. have been camped outside the front door of our parent company for decades. This is just another example of a company moving where the majority of new business development is taking place for that particular company. Do the overall industry dynamics change in such a way that will have an impact on Houston? Yes. Will such an impact be negative per se? No.

If anything this should open up further critical developmental ties with the Middle East region and Houston. Case in point, Emirates will be offering a direct connection between Houston and Dubai. It's interesting to see how much hyperbole is being spent on this 'news.' Really, it's become quite the pedestrian affair...

Well said. Conspiracy theorist run a muck is what this whole situation is. I work for one of the largest private equity firms in the USA and world. You should hear some of the garbage said about it from conspiracy theorist and other misinformed jackasses.