On a GAAP basis, the firm posted a net loss of $639 million ($0.75 per share) on inventory write-downs, asset write-offs, impairments of intangible assets, severance costs, Venezuelan currency devaluation, costs related to the acquisition of Baker-Hughes and other charges.
The company did not provide guidance in its earnings release, but the second-quarter consensus estimates call for EPS of $0.22 on revenues of $6.13 billion. For the full year, EPS is estimated at $1.14 on revenues of $24.96 billion.
In the first quarter, North American revenue declined 9% and operating income declined 54%, year-over-year, compared to a 21% reduction in the United States land rig count. Internationally, the rig count was down 9% from its peak in July of last year.
ALSO READ: 3 Top Deutsche Bank Picks for Oil Services Upcycle
Halliburton’s Latin American revenue rose 10% and operating income rose 22% in the quarter. In the Eastern Hemisphere revenue was flat and operating income rose 3%. In the Middle East/Asia region, revenues rose 13% and operating income was up 33%. In Europe/Africa/CIS, revenue fell 16% and operating income fell 41%. The decline was attributed to slower activity in Angola and the North Sea and currency and sanction issues in Russia.
The company’s CEO said:
Industry prospects will continue to be challenged in the coming quarters, and visibility to the ultimate depth and length of this cycle remains uncertain. We will continue to manage through this downturn focusing on reducing input costs, protecting our market position, and delivering the superior execution and solutions our customers have come to expect. In advance of the pending Baker Hughes acquisition, we have made the decision to preserve our global delivery infrastructure through the downturn, which is having a negative impact on our operating margins but will allow us to realize cost synergies after the close. We continue to look beyond the cycle and invest in capital and strategic programs to maintain the health of the franchise and to emerge even stronger when the industry recovers.
Halliburton shares traded up about 0.6% in Monday’s premarket to $47.18, in a 52-week range of $37.21 to $74.33. Thomson Reuters had a consensus analyst price target of around $48.90 before the report.
ALSO READ: Is Kinder Morgan Now the Perfect Energy Stock?
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
