Crude oil (WTI) is slumping by 2.7% to $47.21 per barrel and Brent crude is also decreasing by 1.89% to $52.30 per barrel, according to the CNBC.com index.
This week's rig count is the fourth increase in the past 34 weeks, Reuters added. The total rig count is now 664.
Additionally, oil prices have been tumbling due to economic unrest in China and concerns that there is an abundance of oil supply, Reuters said.
Halliburton provides a range of services and products to the upstream oil and natural gas industry worldwide.
Separately, TheStreet Ratings team rates HALLIBURTON CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALLIBURTON CO (HAL) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, HAL has a quick ratio of 1.69, which demonstrates the ability of the company to cover short-term liquidity needs.
- HAL, with its decline in revenue, slightly underperformed the industry average of 22.1%. Since the same quarter one year prior, revenues fell by 26.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 93.0% when compared to the same quarter one year ago, falling from $774.00 million to $54.00 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Energy Equipment & Services industry and the overall market, HALLIBURTON CO's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: HAL Ratings Report