By Chelsey Dulaney
Halliburton Co. reported a loss in the first quarter as the
oil-field services provider continues to feel the impact from lower
oil prices.
The Houston-based company, which is in the process of acquiring
smaller rival Baker Hughes Inc., said Monday that its customers
have lowered drilling activity and are seeking price
concessions.
"Industry prospects will continue to be challenged in the coming
quarters, and visibility to the ultimate depth and length of this
cycle remains uncertain," Chief Executive Dave Lesar said.
Halliburton booked $823 million in charges for write-downs and job
cuts in the first quarter.
Halliburton shares, down 23% over the past year, rose 11 cents
to $47 as the company's revenue and earnings before items surpassed
analyst expectations.
The results come as the company moves forward with plans to
acquire Baker Hughes. The deal, struck in November and valued at
almost $35 billion at the time, underscored the new realities for
energy companies in a world suddenly awash with oil. As a result,
oil-field services companies, which are hired to drill and pump
wells, are facing less demand for their services and pressure to
cut prices.
Industry experts have predicted that firms like Halliburton and
Baker Hughes will have to shrink further as clients demand price
cuts. The merger will give Halliburton and Baker Hughes better
depth and breadth while allowing cost savings.
Halliburton, the second largest oil-field-services company,
unveiled plans in February to cut up to 8% of its global workforce,
amounting to about 6,400 layoffs. In December, the company said it
would cut 1,000 jobs outside the U.S.
Overall, for the quarter ended March 31, Halliburton reported a
loss of $643 million, or 76 cents a share, compared with a
year-earlier profit of $622 million, or 73 cents a share.
The latest quarter's results included $823 million, or 97 cents
a share, in write-downs, write-offs and severance charges, among
other items. Excluding those charges and other items, earnings from
continuing operations were 49 cents a share.
Revenue fell 4% to $7.1 billion.
Analysts polled by Thomson Reuters expected earnings of 37 cents
a share and revenue of $6.96 billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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