Halliburton Posts Loss Amid North American Weakness--Update
January 25 2016 - 10:19AM
Dow Jones News
By Anne Steele
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.
Weak oil prices and a pullback in drilling activity have spurred
consolidation in the energy industry.
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.
Last week, rival 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, dropped 2% to $29.58 in morning trading in New York.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
January 25, 2016 10:04 ET (15:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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