Giant oilfield services provider Halliburton has recorded a $1.7 billion loss in the second quarter, which the firm attributed to $2.1 billion in impairments.
Halliburton on Monday reported $3.2 billion of revenue during the second quarter, a 46 per cent drop compared to the $5.9 billion of revenue during the same period last year.
The company’s $1.7 billion loss was a night-and-day difference from the $75 million profit during the second quarter of 2019. If we look at the loss per share, the $1.91 loss is far from the earnings of 9 cents per share.
Adjusted net income for the second quarter of 2020, excluding impairments and other charges, was $46 million, or $0.05 per diluted share.
Halliburton stated that the second-quarter loss was due to writing down the value of $2.1 billion of the company’s assets.
It must be said that, during the first quarter, Halliburton also had to write down $1.1. billion worth of assets. This is also the third time in a row that Halliburton reported a loss in the billions. The first quarter of 2020 saw a $1 billion loss while the fourth quarter of 2019 saw a $1.7 billion loss.
Minus the write-downs and other charges, Halliburton reported earning $456 million of free cash flow, an increase from the $12 million reported during the first quarter. The company also has $1.8 billion of cash on hand.
Jeff Miller, chairman, president, and CEO of Halliburton, stated: “Halliburton’s second-quarter performance in a tough market shows we can execute quickly and aggressively to deliver solid financial results and free cash flow despite a severe drop in global activity.
“Total company revenue was $3.2 billion and adjusted operating income was $236 million. Despite the market headwinds, the margin performance of our Completion and Production and Drilling and Evaluation divisions and the $456 million of positive free cash flow generated this quarter show the speed and effectiveness of our aggressive cost actions.