Halliburton reports a 36% drop in quarterly revenue, hurt by weak drilling activity and pricing in North America.
Oct 19 (Reuters) – Halliburton Co, the world's No.2 oilfield services provider, reported a bigger-than-expected 36 percent drop in quarterly revenue, hurt by weak drilling activity and pricing in North America.
Many oil and gas companies have cut back on drilling activity and slashed their capital spending plans as crude prices have nearly halved in the past year.
To make up for their falling revenue, oilfield services providers including Halliburton and Schlumberger Ltd have been cutting jobs and trimming expenses.
Halliburton's revenue in North America almost halved to $2.49 billion in the third quarter. The region accounts for about half of the company's total revenue.
Revenue from markets outside North America fell 22.2 percent.
Industry leader Schlumberger reported a 33 percent drop in quarterly revenue last week and said it might have to further cut costs and jobs as a recovery in drilling activity is expected to take longer than anticipated earlier.
Halliburton's shares fell about 1 percent at $37.49 in premarket trading on Monday.
The company said it was working on getting regulatory approvals for its acquisition of smaller rival Baker Hughes Inc .
Halliburton said last month that it would divest more assets in addition to the sale of three drilling businesses planned initially.
Total revenue fell to $5.58 billion in the quarter ended Sept. 30 from $8.70 billion, a year earlier.
Halliburton reported a net loss of $54 million, or 6 cents per share, attributable to the company, compared with a year-earlier profit, as it took charges related to asset write-offs and severance costs.
Excluding items, Halliburton earned 31 cents per share.
Analysts on average had expected a profit of 27 cents per share and revenue of $5.64 billion, according to Thomson Reuters I/B/E/S.
(Reporting by Sneha Banerjee and Amrutha Gayathri in Bengaluru; Editing by Anil D'Silva and Kirti Pandey)
Copyright 2016 Thomson Reuters. Click for Restrictions.
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