Halliburton Q1 Earnings Beat View

(RTTNews) - Oilfield services provider Halliburton Co. (HAL) Monday reported net loss for the first quarter, reflecting hefty one-time charges and lower revenues amid the downturn in the energy market following the slump in crude oil prices.

However, on adjusted basis, the company reported earnings, that beat the Street estimates. Halliburton warned that industry prospects will continue to be challenged.

The Houston, Texas-based company, which is in a $38 billion deal to acquire smaller peer Baker Hughes, Inc. (BHI), reported net loss for the first quarter of $643 million or $0.76 per share, compared to net income of $622 million or $0.73 per share in the year-ago period.

In the latest quarter, Halliburton recorded company-wide charges of $0.97 per share, primarily as a result of the recent downturn in the energy market. The company also recorded a Venezuela currency devaluation loss of $0.23 per share and Baker Hughes acquisition-related costs of $0.04 per share.

Excluding items, adjusted income from continuing operations for the quarter was $418 million or $0.49 per share. On average, 33 analysts polled by Thomson Reuters expected the company to report earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter declined 4 percent to $7.05 billion from $7.35 billion in the same quarter last year, but beat analysts' consensus estimate of $6.99 billion.

Dave Lesar, Chairman and CEO of Halliburton said, "Total company revenue of $7.1 billion for the first quarter was down 4% year-over-year, significantly outpacing a 19% global rig count decline, and represented industry-leading performance amidst a challenging commodity price environment. Our global customer base has responded by lowering activity levels and seeking price concessions, which has impacted our margins."

Quarterly revenues for the completion and production segment decreased 4 percent from the year-ago period to $4.25 billion.

The company noted that steep rig count declines and price discounts for well completion services in North America as well as decreased activity in Norway, Angola, Mexico and Australia more than offset increased activity across all product lines in Venezuela and increased completion tools sales in Saudi Arabia, Qatar and Nigeria.

Drilling and Evaluation revenue also declined 4 percent from last year to $2.80 billion.

Looking ahead, Lesar said, "Industry prospects will continue to be challenged in the coming quarters, and visibility to the ultimate depth and length of this cycle remains uncertain. We will continue to manage through this downturn focusing on reducing input costs, protecting our market position, and delivering the superior execution and solutions our customers have come to expect."

HAL closed Friday's trading at $46.89. In Monday's pre-market activity, the stock is up $0.16 or 0.34 percent to $47.05.