Halliburton Posts Hefty Loss In Q1 On Charges

(RTTNews) - Halliburton Company (HAL) reported a loss from continuing operations of $2.4 billion, or $2.81 per share, in the first quarter of 2016, compared to a loss of $639 million or $0.75 per share, previous year. Halliburton recorded company-wide charges related primarily to asset impairments and severance costs of approximately $2.1 billion, after-tax, or $2.39 per share, in the first quarter of 2016. Halliburton also recorded Baker Hughes acquisition-related costs of $378 million, after-tax, or $0.44 per share, in the first quarter of 2016. The company also incurred $45 million, after-tax, or $0.05 per share, of interest expense in the first quarter of 2016 associated with the $7.5 billion of debt issued in late 2015.

Halliburton reported income from continuing operations for the first quarter of 2016 of $64 million, or $0.07 per share, excluding special items. Adjusted operating income was $225 million in the first quarter of 2016. On average, 36 analysts polled by Thomson Reuters expected the company to report profit per share of $0.04 for the quarter. Analysts' estimates typically exclude special items.

Halliburton said market conditions continued to negatively impact its business in the first quarter of 2016. The rig count declined to historic lows during the quarter, in the face of continued depressed commodity prices, which created further widespread pricing pressure and activity reductions for the company's products and services on a global basis.

Halliburton's total revenue in the first quarter of 2016 was $4.20 billion, compared to $7.05 billion, a year ago. Analysts expected revenue of $4.17 billion, for the quarter.