US oil field service company Halliburton (NYSE:HAL) on Tuesday announced a net loss of $1.7 billion, or $1.88 per diluted share, for the fourth quarter of 2019. This compares to net income for the third quarter of 2019 of $295 million, or $0.34 per diluted share. Adjusted net income for the fourth quarter of 2019, excluding impairments and other charges, was $285 million, or $0.32 per diluted share.
Halliburton said its total revenue in the fourth quarter of 2019 was $5.2 billion, a 6% decrease from revenue of $5.6 billion in the third quarter of 2019. Reported operating loss was $1.7 billion during the fourth quarter of 2019, compared to operating income of $536 million in the third quarter of 2019. Adjusted operating income for the fourth quarter of 2019, excluding impairments and other charges, was $546 million, a 2% increase sequentially.
Total revenue for the full year of 2019 was $22.4 billion, a decrease of $1.6 billion, or 7%, from 2018. Reported operating loss for 2019 was $448 million, compared to a reported operating income of $2.5 billion for 2018. Excluding impairments and other charges, adjusted operating income for 2019 was $2.1 billion, compared to adjusted operating income of $2.7 billion for 2018.
“I am pleased with how Halliburton executed for the fourth quarter and the full year. We optimized our performance in North America as the market softened, and our international business grew for the second year in a row,” commented Jeff Miller, Chairman, President and CEO.
He said the company delivered over $900 million of free cash flow for the full year 2019, demonstrating its ability to generate consistent free cash flow throughout different business environments.
“International revenue increased 10% sequentially in the fourth quarter of 2019. It also grew 10% on a full year basis, outpacing the international rig count. For the full year, revenue increased in all international regions and in both our divisions,” Miller stated.
In 2020, Halliburton said it expects its international growth to continue. Increased activity, disciplined capital allocation, pricing improvements, and the ability to compete for a larger share of high-margin services should lead to improvement in international margins in 2020.
Miller said the company’s North America revenue decreased 21% sequentially in the fourth quarter and 18% for the full year as a result of reduced customer activity and pricing, and its decision to focus on returns over growth. He said Halliburton took swift actions in the fourth quarter making structural changes to adjust to the current market environment.
“While we expect customer spending in North America to be down again this year, we will continue executing our playbook, implementing our service delivery improvement strategy, and focusing on maximizing our returns,” he said.
