Energy

Charges Slam Halliburton Earnings; Will Wait for Industry Recovery

Paul Ausick

Published: January 25, 2016 7:40 am

Last Updated: January 13, 2020 2:39 pm

Halliburton Co. (NYSE: HAL) reported fourth-quarter and full-year 2015 results before markets opened Monday. For the quarter, the oil and gas services company posted adjusted diluted earnings per share (EPS) of $0.31 on revenues of $5.08 billion. In the same period a year ago, the company reported EPS of $1.19 on revenues of $8.77 billion. Fourth-quarter results compare also to the Thomson Reuters consensus estimates for EPS of $0.24 and $5.11 billion in revenues.

For the full year, Halliburton reported EPS of $1.56 on revenues of $23.63 billion, compared with 2014 EPS of $4.02 on revenues of $32.87 billion. Analysts were looking for EPS of $1.48 on revenues of $23.69 billion.

On a GAAP basis, the firm posted a quarterly net loss of $28 million ($0.03 per share) compared with net income of $9.01 million ($1.06 per share) in the fourth quarter of 2014. In the quarter, Halliburton took charges, primarily for asset impairment and severance, of $192 million ($0.22 per share); a charge of $79 million ($0.07 per share) related to its acquisition of Baker Hughes; and $27 million ($0.03 per share) in interest charges related to its $7.5 billion fourth-quarter debt issue.

In 2015, North American revenue declined by about 28% year over year and operating income dropped from $5.1 billion to an operating loss of $165 million.

The company did not provide guidance in its earnings release, but the first-quarter consensus estimates call for EPS of $0.15 on revenues of $4.79 billion. For the full year, EPS is estimated at $0.87 on revenues of $20.13 billion.

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