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Halliburton reports 4Q loss of $149 mln

Shares of Halliburton fell slightly in pre-market trading after the company cautioned on international weakness in its business, but posted better-than-expected earnings for the fiscal 4th quarter.

Halliburton reports 4Q loss of $149 mln Halliburton reports 4Q loss of $149 mln


Shares of Halliburton fell slightly in pre-market trading on January 23, 2017, after the company cautioned on international weakness in its business, but posted better-than-expected earnings for the fiscal 4th quarter.

 

The Houston-based company reported a loss of $ 0.17 a share.

Adjusted for one-time costs, including a class action suit settlement, earnings came in at $ 0.04 a share, which beat analysts' estimates calling for $ 0.02 a share.

 

Revenue of $4 billion fell just short of forecasts.

The company also incurred a $92 million of foreign currency exchange losses, of which $53 million was due to the impact of the devaluation of the Egyptian pound.

 

CEO Dave Lesar said in a statement that, the North America market appears to have rounded the corner, but the international downward cycle is still playing out.

For the full year, Halliburton reported revenue of $15.9 billion, a 33% decline from 2015.

«Guided by the lessons learned from past industry cycles, our strategy focused not only on managing costs but also on aligning our resources to strengthen our market position,» Lesar said.

 

He continued to say that Halliburton gained significant market share through the downturn, which continued into the fourth quarter, «as we outgrew our primary competitor in North America, Latin America and the Eastern Hemisphere.»

The CEO, however, noted that the energy market is «a tale of 2 cycles.»

 

Halliburton said it returned to operating profitability in North American, achieving 65% incremental margins.

The North America segment saw the largest increase in revenue to $1.8 billion, which represents a 9% increase sequentially, as the average U.S. rig count rose 23%.

 

The company said its operating results improved by $94 million driven primarily by increased pricing and utilization throughout the U.S. land sector and effective cost management.

On the international front, Halliburton reported revenue of $2.2 billion, a 2% increase sequentially, which was driven by improved activity in the Production Enhancement, Landmark, and Consulting and Project Management.

Source : Neftegaz.RU