Halliburton loss quadruples, revenue tumbles
Oilfield services giant Halliburton's net loss nearly quadrupled in the first quarter, as low oil prices pressured results.
The company posted a net loss of $2.4 billion, down from a loss of $641 million a year earlier. Total revenue tumbled 40% from a year earlier to $4.2 billion, reflecting how plummeting spending by exploration-and-production oil and gas companies is undermining the oilfield services business.
The blistering earnings report comes two days after Halliburton canceled its acquisition of rival Baker Hughes, a deal once valued at $34 billion, after the U.S. Justice Department sought to block the deal.
Halliburton must pay a $3.5 billion breakup fee to exit the deal, further compounding its challenges despite a recent uptick in crude oil prices that is delivering some relief to energy companies.
The company recorded a charge of $538 million for acquisition costs related to the failed Baker Hughes deal, the result of delayed depreciation and amortization expenses tied to assets that were supposed to be sold but are now set to remain within Halliburton's portfolio.
Analysts have speculated that Halliburton, Baker Hughes or other industry players could make other deals following the dissolution of the merger between the No. 2 and No. 3 oilfield services companies.
Halliburton shares (HAL) were down more than 4% in afternoon trading to $40.28.
The company estimated last month that North American spending on drilling and well completion would fall by 50% in 2016, worse than 2015's 40% drop.
Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.