Halliburton booked a $1 billion loss in the 1st quarter of this year

Houston, April 21 - Neftegaz.RU. Giant oilfield services provider Halliburton fell to a $1billion net loss in the 1st quarter, due to the combination of low oil demand and resulting oversupply being further exacerbated by the coronavirus pandemic.

The US-headquartered firm said Covid-19 continues to negatively impact its business amid the oil price plummet after taking a $1.1 bln write-down in asset valuations.

Earlier this month the company, who employs hundreds of people in north-east Scotland, announced plans to “significantly reduce” its workforce of 50 000, although did not provide further details in the results announcement.

In a statement, the company said: “(Halliburton) cannot reasonably estimate the period of time that the Covid-19 pandemic and related market conditions will persist, the extent of the impact they will have on the company’s business, liquidity, consolidated results of operations and consolidated financial condition, or the pace of any subsequent recovery”.

The 1st quarter results reflect “some” of the reduced activity towards the “latter part of the quarter”, the company said, as revenue was down just $700 mln on the 1st quarter of 2019, at $5.03 bln. On a pre-tax basis, Halliburton recorded a loss of $896 mln.

Jeff Miller, Halliburton CEO, said: “Our industry is facing the dual shock of a massive drop in global oil demand coupled with a resulting oversupply."

However the rhetoric from Miller was more optimistic. He said: “We are taking swift actions to reduce overhead and other costs by approximately $1 billion, lower capital expenditures to $800 million, and improve working capital. We will take further actions as necessary to adjust to evolving market conditions. We believe the actions we take will not only temper the impact of the activity declines on our financial performance, but also ensure that we are in a strong position, financially and structurally, to take advantage of the market’s eventual recovery.”