Halliburton Posts Loss Amid North American Weakness
January 25 2016 - 8:20AM
Dow Jones News
Halliburton Co. swung to a loss in the final quarter of the
year, hurt by asset write-offs and severance costs amid the
downturn in the energy market and drastically lower revenue from
its North American business.
Halliburton, the second largest oil-field-services company
behind Schlumberger Ltd. and a bellwether for the industry,
reported that revenue in its North American operations skidded 54%
from a year earlier to $2.16 billion amid continued activity
declines and pricing concessions in U.S. land.
The oil giant is in the process of acquiring smaller rival Baker
Hughes Inc. in a $35 billion deal. But more than a year after it
was announced, the deal is facing a growing list of antitrust
concerns from the U.S. Justice Department and other competition
authorities world-wide that could threaten the combination.
For the period ended Dec. 31, Halliburton reported a loss of $28
million, or 3 cents a share, compared with a year-earlier profit of
$901 million, or $1.06 a share. Excluding special items, per-share
earnings from continuing operations were 31 cents, or flat from a
year earlier. The company said it recorded Baker Hughes
acquisition-related costs of $79 million, or 9 cents a share, in
the quarter.
Total revenue slumped 42% to $5.08 billion.
Analysts polled by Thomson Reuters expected adjusted earnings of
24 cents on revenue of $5.11 billion.
Weak oil prices and a pullback in drilling activity have spurred
consolidation, and rival Schlumberger said late last week it was in
talks to buy back its former Iranian unit, Well Services of
Iran.
Last week, Schlumberger reported it swung to a fourth-quarter
loss as revenue fell 39% and the prolonged energy slump continued
to pressure pricing and demand for its services from oil producers.
Baker Hughes is set to report its results Thursday.
Shares of Halliburton, which have fallen 26% over the past 12
months, were inactive premarket.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
January 25, 2016 08:05 ET (13:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Halliburton (NYSE:HAL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Halliburton (NYSE:HAL)
Historical Stock Chart
From Sep 2023 to Sep 2024