A second quarter net loss of $1.7 billion or $1.91 per diluted share was announced Monday by Halliburton Company, months after the firm shut down, laid off hundreds of workers and eventually closed its command center in El Reno, Oklahoma.
It was an increase from the $1 billion or $1.16 per diluted share reported lost in the first quarter of 2020. The company, in releasing its earnings report said the adjust net income for the second quarter excluding impairments and other charges was $46 million or 5 cents per diluted share. Adjusted net income in the first quarter was $270 million or 31 cents a share.
COVID-19 and the worldwide pandemic were largely to blame as crude oil production and accompanying services for many energy companies dropped in the past several months.
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.
“Total company revenue was $3.2 billion and adjusted operating income was $236 million. Despite the market headwinds, the margin performance of our 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 our aggressive cost actions.
Completion and Production revenue in the second quarter of 2020 was $1.7 billion, a decrease of $1.3 billion, or 44%, when compared to the first quarter of 2020, while operating income was $159 million, a decrease of $186 million, or 54%.
Drilling and Evaluation revenue in the second quarter of 2020 was $1.5 billion, a decrease of $551 million, or 27%, when compared to the first quarter of 2020, while operating income was $127 million, a decrease of $90 million, or 41%. This decline was primarily due to a global reduction in drilling-related services and lower software sales internationally.
North America revenue in the second quarter of 2020 was $1.0 billion, a 57% decrease when compared to the first quarter of 2020. This decline was driven by reduced activity in U.S. land, primarily associated with pressure pumping, well construction, artificial lift, and wireline activity, coupled with reduced activity across multiple product service lines in the Gulf of Mexico.
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