US' Halliburton Oil Services Company Reports $1 Bln Net Loss in Q1 Due to Market Fluidity
Halliburton, one of the world's largest oil services companies, swung to a net loss of $1.02 billion during the January-March period from net income of $152 million year-on-year, according to the company's freshly released reports on results in Q1
MOSCOW (Pakistan Point News / Sputnik - 20th April, 2020) Halliburton, one of the world's largest oil services companies, swung to a net loss of $1.02 billion during the January-March period from net income of $152 million year-on-year, according to the company's freshly released reports on results in Q1.
"Our industry is facing the dual shock of a massive drop in global oil demand coupled with a resulting oversupply," Halliburton CEO Jeff Miller was quoted as saying in the press release.
According to the report, Halliburton's net loss totaled $1.16 per diluted share, as compared to net income of $0.17 per diluted share in the first quarter of 2019, amid a $1.1 billion pre-tax impairment and other charges to adjust its cost structure to current market conditions.
Revenues throughout January-March dropped 12 percent year-on-year to $5 billion, as the completion and production revenue dropped 19 percent to $3 billion and the drilling and evaluation revenue stayed flat at $2 billion, the company said.
The company said it would reduce overhead and other costs by $1 billion and capital spending to $800 million, as well as improve working capital, to further adjust to the changing market conditions.
According to Miller, much of the instability in the oil market was caused by the COVID-19's economic impact and ensuing drop in demand. He further pointed to the initially unsuccessful talks of the OPEC-non-OPEC producers as a factor.
The company said it expected a further drop in revenues moving forward into the year, especially in North America.
Earlier in April, the OPEC+ producers agreed to a collective cut in output by 9.7 million barrels per day in a bid to stabilize the market.