Shares of Halliburton (HAL) - Get Report sank Monday after the oilfield services giant reported a big drop in revenue and a $1 billion-plus impairment charge as it scrambles to adjust to a steep decline in energy demand.
Halliburton's stock price dove 6.33% to $7.10 a share in premarket trading as investors digested news of the company's tough quarterly results amid the coronavirus-driven global economic downturn.
Halliburton reported a loss of $1 billion, or $1.16 a share, for the first quarter, down from profit of $152 million, or 17 cents a share, during the same period a year ago.
Earnings, when nonrecurring items are eliminated, came in positive, at 31 cents a share, beating analysts' expectations. Despite a 12% drop to $5.04 billion, revenue also same in slightly above what analysts had predicted.
However, the drilling and oilfield services giant offered a less-than-rosy assessment of the road ahead for the remainder of 2020.
Halliburton, in a press statement, said it expects a "further decline in revenue and profitability, particularly in North America," for the rest of 2020.
Revenue in North America fell 25%, to $2.5 billion, in the first quarter, while completion and production revenue worldwide fell 19%, the company said.
Halliburton said it was unable to provide any specific guidance on the "period of time the Covid-19 pandemic and related market conditions will persist, the extent of the impact the will have on the company's business, liquidity, consolidated results of operations and consolidated financial condition, or the pace of any subsequent recovery."