Halliburton’s 1Q’16 Earnings Plunge As Drilling Activity Remains Low, Particularly In North America
As expected, Halliburton (NYSE:HAL), the world’s second largest oilfield services company, reported a weak set of March quarter 2016 numbers last week, due to depressed commodity prices during the quarter. The 30% drop in crude oil and natural gas prices in 1Q’16, led to a 40% decline in the Houston-based company’s revenue on a year-on-year basis. The majority of this fall is attributable to the North American markets, where the company experienced almost a 50% slide in revenue and booked minor losses. International markets, although more resilient than the North American markets, also witnessed weakness in their profitability.
Further, the deteriorating conditions of the commodity markets have forced the company to reduce the infrastructure that it had maintained in anticipation of the pending Baker Hughes acquisition. Also, in order to weather the current downturn, Halliburton reduced its workforce by 6,000 in the last three months. Overall, the company has cut down its workforce by almost one-third since 2014, when the oil slump started.
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Since Halliburton has a deadline of 30th April 2016 to obtain the necessary clearances pertaining to its deal with Baker Hughes, its first quarter conference call has been postponed to 3rd May 2016.
Have more questions about Halliburton (NYSE:HAL)? See the links below:
- How Will The Halliburton-Baker Hughes Deal Failure Impact Halliburton’s Equity Value?
- How Will The Halliburton-Baker Hughes Deal Impacted Halliburton’s Credit Capacity?
- Did Halliburton Pay A Higher Price For Baker Hughes’ Acquisition?
- Downward Revision of Halliburton’s Price From $42 To $38 Per Share
- How Valuable Are Halliburton’s North American Markets Compared To Its Middle East & Asian Markets?
- How Much Will Halliburton’s Revenue Grow If Oil Prices Rebound To $100 Per Barrel By 2018?
- What Is Halliburton’s Fundamental Value Based On 2016 Expected Numbers?
- How Much Will Halliburton’s Revenue And EBITDA Grow Over The Next Five Years?
- How Has Halliburton’s Revenue And EBITDA Changed Over The Last Five Years?
- What Is Halliburton’s Revenue And EBITDA Breakdown?
- How Has Halliburton’s Revenue And EBITDA Composition Changed Over The Last Five Years?
- Halliburton: The Year 2015 In Review
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Halliburton Company
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