Halliburton’s 2Q 2015 results have the company in the red, with a 16% drop in its total revenue, compared to 1Q 2015, that the company says is due to the industry’s recent downturn.
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Image from Halliburton. |
The Houston-based oilfield services giant’s 2Q 2015 revenue was reported as US$5.9 billion, compared to the $7.1 billion it raked in just last quarter (1Q 2015).
Primarily as a result of the recent downturn in the energy market and its corresponding impact on the company’s business outlook, Halliburton recorded approximately $258 million, after-tax, in 2Q 2015, as compared to $823 million, after-tax in 1Q 2015, in company-wide charges related primarily to severance costs and asset write-offs, Halliburton said.
Income from continuing operations for 2Q 2015 was $380 million, a 9% decrease compared to 1Q 2015’s results of $418 million.
Halliburton’s adjusted operating income was $643 million in 2Q 2015, an 8% decrease of $699 million in 1Q 2015.
The company even took a hit on its upcoming merger deal with Baker Hughes. Halliburton endured acquisition-related costs of $67 million in 2Q 2015, as compared to $35 million, in 1Q 2015.
“We recently received the initial round of bids on our previously announced divestitures, and are pleased with the prices and level of interest. Baker Hughes has certified compliance with the US Department of Justice’s second request, and we expect to do so shortly,” said Dave Lesar, Halliburton chairman and CEO. “We are enthusiastic about and fully committed to closing this compelling transaction, and are confident we can achieve cost synergies of nearly $2 billion, regardless of market conditions or any cost reduction actions taken by either company to date.
Halliburton’s reported income from continuing operations in 2Q 2015 was $55 million, compared to reported loss from continuing operations of $639 million in 1Q 2015. Reported operating income was $254 million for 2Q 2015, as compared to reported operating loss of $548 million for 1Q 2015, according to Halliburton.
“We are pleased with our 2Q results, considering the headwinds facing the industry,” said Jeff Miller, Halliburton president. “Total company revenue of $5.9 billion declined 16% sequentially, outperforming a 26% drop in the worldwide rig count. Operating income declined as a result of lower activity levels for all product lines, exacerbated by pricing declines, primarily in North America.”
“Our strategy remains consistent – we will manage costs through the downturn, while looking beyond the cycle to ensure that we will be positioned for growth when the industry recovers. We continue to invest in technology, build capital equipment, and prepare for our pending combination with Baker Hughes,” said Lesar.
Read more:
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