Halliburton takes $2.1B charge as coronavirus slams business

The firm lost $1.7B in the three months through June

Halliburton Co. booked a $2.1 billion pre-tax impairment charge in the three months through June as the COVID-19 pandemic provided difficult business conditions in North America.

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The Houston-based energy-services provider posted a net loss of $1.7 billion as revenue plunged 46 percent from a year ago to $3.2 billion, missing the $3.31 billion that analysts surveyed by Refinitiv were anticipating.

Adjusted earnings, which excluded impairments and other one-time charges were 5 cents per share, ahead of the 11-cent loss that was expected.

TickerSecurityLastChangeChange %
HALHALLIBURTON COMPANY14.89+0.07+0.47%

“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,” CEO Jeff Miller said in a statement.

A sharp drop in drilling by North American customers resulted in a 57 percent year-over-year plunge in revenue from the region. International sales were off 17 percent.

Halliburton last month cut its quarterly dividend by 75 percent. The firm has also reduced capital expenditures for fiscal year 2020 by 50 percent to $800 million and slashed another $1 billion of costs.

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Halliburton shares were down 47 percent year-to-date, trailing the S&P 500's 0.19 percent decline.