Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Halliburton posts third-straight quarterly loss on shale slump

Stock Markets Jul 20, 2020 10:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Halliburton’s campus in Houston, Texas

By Liz Hampton and Shariq Khan

(Reuters) - Oilfield services giant Halliburton Co (N:HAL) posted its third straight quarterly loss on Monday as it took a $2.1 billion impairment charge amid a slump in oil prices and collapse in drilling by North American customers.

Demand for drilling services offered by Halliburton and rivals like Schlumberger (N:SLB) and Baker Hughes (N:BKR) sank after oil prices collapsed in March. U.S. crude futures were trading around $40 per barrel on Monday (CLc1), at the bottom end of what most producers need to be profitable.

Many smaller oilfield service firms, including fracker BJ Services and sand provider Hi-Crush, have filed for bankruptcy since the price rout began.

As North American markets face pressure, Halliburton expects its international business to become a bigger contributor to its revenue, Chief Executive Jeff Miller told investors on Monday.

Halliburton said it anticipates third quarter revenue to decline by low single digits, pressured by lower drilling activity. The company expects North American production to remain "structurally lower," Miller said.

The Houston, Texas-based company reported a net loss of $1.7 billion, or $1.91 per share, in the second quarter, compared with a profit of $75 million, or 9 cents per share, a year earlier.

Shares rose 5.05% in early trading to $13.74 as market analysts praised its better-than-expected free cash flow and aggressive cost cutting.

"We believe 2Q results reflect quicker and potentially stronger cost reductions," analysts from Wells Fargo (NYSE:WFC) wrote in a note on Monday.

The company reported free cash flow of $456 million, significantly topping expectations.

Halliburton has slashed its quarterly dividend by 75%, cut its capital spending forecast to half to $800 million, and reduced its workforce and executive pay. The company is about 75% through a target of an annualized $1 billion in cost reductions.

The company posted an adjusted profit of 5 cents per share, versus analysts' expectations for a loss of 11 cents, according to Refinitiv IBES data.

Halliburton posts third-straight quarterly loss on shale slump
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Hello Oil
Hello Oil Jul 20, 2020 12:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
HAL will not be around in 10 years.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email