Halliburton Company (NYSE: HAL) announced Monday a net loss of $1.7 billion, or $1.91 per diluted share, for the second quarter of 2020. This compares to a net loss for the first quarter of 2020 of $1.0 billion, or $1.16 per diluted share.
The company said adjusted net income for the second quarter of 2020, excluding impairments and other charges, was $46 million, or $0.05 per diluted share. This compares to adjusted net income for the first quarter of 2020, excluding impairments and other charges and a loss on the early extinguishment of debt, of $270 million, or $0.31 per diluted share.
Halliburton’s total revenue in the second quarter of 2020 was $3.2 billion, a 37% decrease from revenue of $5.0 billion in the first quarter of 2020. Reported operating loss was $1.9 billion in the second quarter of 2020 compared to reported operating loss of $571 million in the first quarter of 2020. Excluding impairments and other charges, adjusted operating income was $236 million in the second quarter of 2020, a 53% decrease from adjusted operating income of $502 million in the first quarter of 2020.
“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. Our results demonstrate a significant and sustainable reset to the power of our business to generate positive earnings and free cash flow,” commented Jeff Miller, Chairman, President and CEO.
He said total company revenue was $3.2 billion and adjusted operating income was $236 million. Despite the market headwinds, the margin performance of the company’s 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 its aggressive cost actions.
“We have an excellent international business, an efficient North America service delivery improvement strategy, a disciplined capital allocation approach, and a committed and competitive team. Our continued deployment of leading digital technologies will drive efficiency and cost reductions for our customers and Halliburton,” Miller said. “Halliburton is charting a fundamentally different course. The strategic actions we are taking will further boost our earnings power and ability to generate free cash flow as we power into and win the eventual recovery.”
Halliburton is one of the world’s largest providers of products and services to the energy industry. With more than 40,000 employees, representing 140 nationalities in more than 80 countries.
It has provided services to some of the largest oil and gas companies, including ExxonMobil in Guyana, and elsewhere.