On Wednesday, Halliburton released their earnings reports, revealing a $3.21 billion loss. That amounts to a $3.73 per share loss. The firm also announced that they cut another 5,000 jobs in the second quarter. During the same period last year, Halliburton managed to turn a $54 million profit.
Much of the Halliburton loss was due to the $3.5 billion payment to Baker Hughes after the failed merger earlier this year. The combination of the two companies faced opposition from multiple international antitrust organizations.
At this stage in the downturn, it is not entirely unregular for a company to fail to turn a profit. Indeed, as Bloomberg notes, the four largest oilfield suppliers failed to turn a profit in North America in the first quarter of 2016. Schlumberger reported on Thursday that its bottom line was $2.16 billion in the red.
Not all is dismal, as the company expects the North American market to take a positive turn. Halliburton CEO, Dave Lesar, said “We expect to see a modest uptick in rig count during the second half of the year. With our growth in market share during the downturn, we believe we are best positioned to benefit from any recovery, including a modest one.“
With the rig count apparently having hit its bottom, this should be an accurate assumption of the North American market. The companies that have survived the price drop have been forced to become more efficient and lean, and many of these companies have grown in market share through the elimination of enemies. When the market turns around they should be well-positioned to take advantage of the blossoming business opportunities.
Article written by HEI contributor Timothy McNally.