Losses grew in 4Q for Halliburton but its CEO remains optimistic about 2021

 

Halliburton’s CEO Jeff Miller expressed optimism about the oil and gas industry’s recovery this year and next year, at least in North America.

This as Halliburton reported a net loss of $235 million or 27 cents a share for the fourth quarter of the year.  It was an increased loss compared to the third quarter of 2020 when the company suffered a $17 million net loss or 2 cents a diluted share.

Adjusted net income for the fourth quarter of 2020, excluding impairments and other charges, was $160 million, or $0.18 per diluted share. This compares to adjusted net income for the third
quarter of 2020, excluding severance and other charges, of $100 million, or $0.11 per diluted share. Halliburton’s total revenue in the fourth quarter of 2020 was $3.2 billion, a 9% increase from revenue of $3.0 billion in the third quarter of 2020.

Miller’s prediction came as the company revealed it beat profit estimates on cost cuts and gains in activity after last year’s plunge.

“We view 2021 as a bit of a transition year, and 2022 is when we see the global rebalancing of supply and demand,” Miller said on a post-earnings call.

“I am optimistic about the activity momentum I see in North America, and expect international activity to bottom in the first quarter of this year. I am also encouraged by the growing pipeline of international customer opportunities and the unfolding global activity recovery.”

He also said he expects more oil and gas firms to consolidate in the coming year and felt that international markets might bottom out in the first quarter of the year and make gradual improvements in the coming months.

Halliburton, like other oil and gas operators made drastic cuts in costs last year, closing a new command center at El Reno, Oklahoma and laying off hundreds of workers. Months later, workers at its Duncan command center were also laid off.

Click here for Halliburton press release