Halliburton Q4 Adj. Profit Beats View; But Sees 2016 As Challenging Year

(RTTNews) - Oilfield services provider Halliburton Co. (HAL) reported a loss for the fourth quarter on sharply lower revenues and company-wide charges related primarily to asset write-offs and severance costs amid the downturn in the oil industry.

Excluding items, the company recorded adjusted earnings for the quarter that beat analysts' estimates, while revenues missed their expectations. The company expects 2016 to be another challenging year for the industry.

Halliburton, which is in a deal to acquire smaller peer Baker Hughes, recorded company-wide charges related primarily to asset write-offs and severance costs of approximately $0.22 per share in the quarter. The company also recorded Baker Hughes acquisition-related costs of $0.09 per share in the quarter.

The company's net loss for the fourth quarter was $28 million or $0.03 per share, compared to net income of $901 million or $1.06 per share in the year-ago period.

Excluding items, adjusted income from continuing operations for the quarter was $270 million or $0.31 per share. On average, 33 analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter declined 42 percent to $5.08 billion from $8.77 billion in the year-ago period. Analysts expected revenue of $5.11 billion for the quarter.

Quarterly revenues for the completion and production segment decreased 48 percent from the year-ago period to $2.83 billion. Drilling and Evaluation revenue declined 32 percent from last year to $2.25 billion.

Looking ahead, Dave Lesar, Chairman and CEO said, "2016 is expected to be another challenging year for the industry. We believe our customers will remain focused on cost per barrel optimization and gaining higher levels of efficiency, both of which bode very well for Halliburton."