Halliburton Co. (HAL) - Get Free Report posted a narrower-than-expected second loss Monday, but still saw revenues at less than half of last year's total as the coronavirus pandemic crippled crude drilling projects in key markets around the world.
Halliburton said its adjusted loss for the three months ending in June was pegged at 5 cents per share, down from a profit of 35 cents a share last year and modestly better than the Street consensus forecast. The company's reported loss was $1.91 per share, or $1.7 billion. Group revenues, Halliburton said, fell 45.8% from last year to $3.2 billion, missing analysts' estimates of a $3.35 billion tally.
North American revenue for the oil services group fell 57% from last year to $1 billion, largely down to reduced activity across various product lines in the Gulf of Mexico. International revenue, Halliburton said, fell 17% from last year to $2.1 billion.
“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," said CEO Jeff Miller. "Our results demonstrate a significant and sustainable reset to the power of our business to generate positive earnings and free cash flow.”
"Halliburton is charting a fundamentally different course," he added. "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,”
Halliburton shares were marked 5% higher in early trading following the earnings release to change hands at $13.68 each, a move that would trim the stock's year-to-date decline to around 40%.