Halliburton takes dive in Q1

Halliburton, an oilfield services company, has informed that its income from continuing operations for the first quarter of 2015 was $418 million, or $0.49 per diluted share, excluding special items.

This compares to income from continuing operations for the first quarter of 2014 of $623 million, or $0.73 per diluted share. Adjusted operating income was $699 million in the first quarter of 2015, compared to operating income of $970 million in the first quarter of 2014.

Halliburton’s total revenue in the first quarter of 2015 was $7.1 billion, compared to $7.3 billion in the first quarter of 2014.

The company reported a net loss of $643 million in the first quarter compared with a profit of $622 million in the year-earlier period.

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 $823 million, after-tax, or $0.97 per diluted share, in company-wide charges during the first quarter of 2015 related to asset write-offs, inventory write-downs, impairments of intangible assets, severance costs, and other charges.

Halliburton also recorded a Venezuela currency devaluation loss of $199 million, or $0.23 per diluted share, and Baker Hughes acquisition-related costs of $35 million, after-tax, or $0.04 per diluted share. Reported loss from continuing operations was $639 million, or $0.75 per diluted share. Reported operating loss was $548 million for the first quarter of 2015.

“Total company revenue of $7.1 billion for the first quarter was down 4% year-over-year, significantly outpacing a 19% global rig count decline, and represented industry-leading performance amidst a challenging commodity price environment. Our global customer base has responded by lowering activity levels and seeking price concessions, which has impacted our margins. As evident by the restructuring charges taken during the quarter, we are taking steps to help mitigate the ongoing impact,” said Dave Lesar, chairman and chief executive officer.

“Industry prospects will continue to be challenged in the coming quarters, and visibility to the ultimate depth and length of this cycle remains uncertain.

“In advance of the pending Baker Hughes acquisition, we have made the decision to preserve our global delivery infrastructure through the downturn, which is having a negative impact on our operating margins but will allow us to realize cost synergies after the close. We continue to look beyond the cycle and invest in capital and strategic programs to maintain the health of the franchise and to emerge even stronger when the industry recovers.”

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