Halliburton’s profit tumbles in 2Q
Halliburton Company, one of the world’s largest providers of products and services to the energy industry, has announced in its second quarter 2015 results that its net income dipped to $53 million in the second quarter from $775 million a year earlier.
The company said that its income from continuing operations for the second quarter of 2015 was $380 million.
This compares to income from continuing operations for the first quarter of 2015 of $418 million.
Adjusted operating income was $643 million in the second quarter of 2015, compared to adjusted operating income of $699 million in the first quarter of 2015.
Halliburton’s total revenue in the second quarter of 2015 was $5.9 billion, compared to $7.1 billion in the first quarter of 2015.
Halliburton said that primarily as a result of the recent downturn in the energy market and its corresponding impact on the company’s business outlook, the company recorded approximately $258 million, after-tax, in the second quarter of 2015, as compared to $823 million, after-tax, in the first quarter of 2015, in company-wide charges related primarily to severance costs and asset write-offs.
Halliburton recorded Baker Hughes acquisition-related costs of $67 million, after-tax, in the second quarter of 2015, as compared to $35 million, after-tax, in the first quarter of 2015.
Reported income from continuing operations was $55 million, in the second quarter of 2015, as compared to reported loss from continuing operations of $639 million in the first quarter of 2015.
Reported operating income was $254 million for the second quarter of 2015, as compared to reported operating loss of $548 million for the first quarter of 2015.
“We are pleased with our second quarter results, considering the headwinds facing the industry,” said Jeff Miller, 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.
“We expect the global markets will remain transitional, and in these times, operational execution is an even more critical source of differentiation. Our financial results reflect our strong execution culture, and we remain focused on delivering reliable, best-in-class service quality for our customers,” said Miller.
“We are pleased with the progress of the proposed Baker Hughes acquisition, as evidenced by our recently announced timing agreement with the U.S. Department of Justice,” added Dave Lesar, Chairman and CEO.
“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,” said Lesar.