Halliburton reports net loss in 2Q20
Published by Nicholas Woodroof,
Halliburton has announced a net loss of US$1.7 billion for 2Q20.
This compares to a net loss for 1Q20 of US$1 billion. Adjusted net income for 2Q20, excluding impairments and other charges, was US$46 million. This compares to adjusted net income for 1Q20, excluding impairments and other charges and a loss on the early extinguishment of debt, of US$270 million, or US$0.31 per diluted share. Halliburton's total revenue in 2Q20 was US$3.2 billion, a 37% decrease from revenue of US$5 billion in 1Q20. Reported operating loss was US$1.9 billion in 2Q20 compared to reported operating loss of US$571 million in 1Q20. Excluding impairments and other charges, adjusted operating income was US$236 million in 2Q20, a 53% decrease from adjusted operating income of US$502 million in 1Q20.
“Halliburton’s second quarter performance in a tough market shows we can execute quickly and aggressively to deliver solid financial results and free cash flow despite a severe drop in global activity. Our results demonstrate a significant and sustainable reset to the power of our business to generate positive earnings and free cash flow,” commented Jeff Miller, Chairman, President and CEO.
“Total company revenue was US$3.2 billion and adjusted operating income was US$236 million. Despite the market headwinds, the margin performance of our Completion and Production and Drilling and Evaluation divisions and the US$456 million of positive free cash flow generated this quarter show the speed and effectiveness of our aggressive cost actions.
“We have an excellent international business, an efficient North America service delivery improvement strategy, a disciplined capital allocation approach, and a committed and competitive team. Our continued deployment of leading digital technologies will drive efficiency and cost reductions for our customers and Halliburton.
“Halliburton is charting a fundamentally different course. The strategic actions we are taking will further boost our earnings power and ability to generate free cash flow as we power into and win the eventual recovery,” concluded Miller.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/20072020/halliburton-reports-net-loss-in-2q20/
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