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Halliburton releases 1Q20 financial results

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Oilfield Technology,

Halliburton has announced a net loss of US$1 billion, or US$1.16 per diluted share, for 1Q20.

This compares to net income for 1Q19 of US$152 million, or US$0.17 per diluted share. Adjusted net income for 1Q20, excluding impairments and other charges and a loss on the early extinguishment of debt, was US$270 million, or US$0.31 per diluted share. This compares to adjusted net income for 1Q19, excluding impairments and other charges, of US$201 million, or US$0.23 per diluted share. Halliburton's total revenue in 1Q20 was US$5 billion, a 12% decrease from revenue of US$5.7 billion in 1Q19. Reported operating loss was US$571 million in 1Q20 compared to reported operating income of US$365 million in 1Q19. Excluding impairments and other charges, adjusted operating income was US$502 million in 1Q20, an 18% increase from adjusted operating income of US$426 million in 1Q19.

“As the world is battling the Covid-19 pandemic, I thank our employees for their dedication and focus during these difficult times. The health and safety of our employees and their families is extremely important to me. We are monitoring the situation closely and following our own guidelines, as well as those from the Centers for Disease Control and Prevention (CDC), the World Health Organization (WHO) and state and local governments. On our customers’ work sites and within our facilities, Halliburton people are getting the job done, while taking the appropriate steps to protect themselves and others,” commented Jeff Miller, Chairman, President and CEO.

“Halliburton executed well in the first quarter. Total company revenue for the first quarter was US$5 billion, a 12% decrease year over year, and adjusted operating income of US$502 million increased 18% year on year. Both our divisions delivered strong margin performance in the first quarter. Our first quarter results demonstrate that the Halliburton team is well prepared to adjust and deliver under any market conditions.

“Our industry is facing the dual shock of a massive drop in global oil demand coupled with a resulting oversupply. Consequently, we expect activity in North America land to sharply decline during the second quarter and remain depressed through year-end, impacting all basins. Internationally, we believe the activity changes will not be uniform across all markets. OPEC+ production decisions and the duration of pandemic-related demand and activity disruptions will ultimately determine the extent of international spending declines this year.

“We have been through downturns before. We know what to do and will execute based on that experience. We are taking swift actions to reduce overhead and other costs by approximately US$1 billion, lower capital expenditures to US$800 million, and improve working capital. We will take further actions as necessary to adjust to evolving market conditions.

“We believe the actions we take will not only temper the impact of the activity declines on our financial performance, but also ensure that we are in a strong position, financially and structurally, to take advantage of the market’s eventual recovery,” concluded Miller.

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