Halliburton Reports $1.7 Billion Loss in Second Quarter

The Oilfield Services Giant, Halliburton Reports Loss of US$ 1.7 Billion in Q2, Compared to US$ 5.9 Billion in the Same Period Last Year

Halliburton reported yesterday revenue of US$ 3.2 billion during the second quarter, a decrease of 46% compared to US$ 5.9 billion in the same period last year. The company’s loss of US$ 1.7 billion was a shift from a profit of US$ 75 million during the second quarter of 2019. Looking at the loss per share, the loss of US$ 1.91 is far from the earnings of 9 cents per share.

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The adjusted net income for the second quarter of 2020, excluding losses and other charges, was US$ 46 million, or US$ 0.05 per diluted share. Halliburton stated that the loss in the second quarter was due to a US$ 2.1 billion write-down of the company’s assets.

It should be noted that, during the first quarter, Halliburton also had to write down US$ 1.1 billion in assets. This marks the third consecutive time that Halliburton has reported a loss of billions. The first quarter of 2020 recorded a loss of US$ 1 billion, while the fourth quarter of 2019 recorded a loss of US$ 1.7 billion.

Excluding the write-downs and other charges, Halliburton reported free cash flow of US$ 456 million, an increase from the US$ 12 million reported in the first quarter. The company also has US$ 1.8 billion in cash on hand.

Jeff Miller, President and CEO of Halliburton, stated: “Halliburton’s performance in the second quarter in a challenging market shows that we can execute quickly and aggressively to deliver strong financial results and free cash flow, despite a sharp decline in global activity. The company’s total revenue was US$ 3.2 billion, and adjusted operating income was US$ 236 million. Despite the headwinds in the market, the performance of our Completion, Production, Drilling, and Evaluation divisions and the US$ 456 million in positive free cash flow generated this quarter demonstrate the speed and effectiveness of our aggressive cost actions.

Halliburton is charting a fundamentally different path. The strategic actions we are taking will further enhance our earnings power and ability to generate free cash flow as we invest and achieve recovery.”