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Halliburton posts third-straight quarterly loss on shale slump

Credit: REUTERS/Andrew Cullen

Oilfield services giant Halliburton Co posted its third straight quarterly loss on Monday as it took a $2.1 billion impairment charge to deal with a slump in oil prices and the resulting collapse in drilling by North American customers.

Compares with estimates, adds background, shares

July 20 (Reuters) - Oilfield services giant Halliburton Co HAL.N posted its third straight quarterly loss on Monday as it took a $2.1 billion impairment charge to deal with a slump in oil prices and the resulting collapse in drilling by North American customers.

Demand for services offered by Halliburton and rivals Schlumberger SLB.N and Baker Hughes BKR.N sank after oil prices collapsed in March, and at around $40 per barrel they remain at the bottom end of the range that most producers need to turn a profit.

Halliburton reported a net loss of $1.7 billion, or $1.91 per share, in the second quarter ended June 30, compared with a profit of $75 million, or 9 cents per share, a year earlier.

However, the company posted a surprise adjusted profit of 5 cents per share, benefiting from aggressive cost cutting. Analysts had expected a loss of 11 cents, according to Refinitiv IBES data.

Halliburton last month slashed it quarterly dividend by 75%, having already cut capital spending forecast to half of last year and targeting other cost reductions of about $1 billion to shore up cash. Its executives have also taken pay cuts and the company has been laying off workers.

Shares of the company rose 2.4% in premarket trading.

(Reporting by Shariq Khan in Bengaluru;Editing by Sriraj Kalluvila)

((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780, outside U.S. +91 80 6182 2681; Twitter: @shariqrtrs))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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