Halliburton reported second-quarter results that crushed expectations on Monday morning, but the oil crash plunged its profits.
The oil field services giant posted diluted earnings per share of $US0.44, versus the estimate for $US0.29 according to Bloomberg. But including special items, profits came in at $US54 million, or 6 cents per share, down from $US774 million, or 91 cents a share last quarter.
Revenues totaled $US5.9 billion, down from $US7.1 billion in the first quarter, and above the estimate for $US5.8 billion.
The company noted that the impact of the plunge in oil prices, which started about a year ago, took out approximately $US0.30 per diluted share in the second quarter, compared to $US0.97 in the first.
In the earnings statement, Halliburton president Jeff Miller said, “total company revenue of $US5.9 billion declined 16% sequentially, outperforming a 26% drop in the worldwide rig count. Operating income declined as a result of lower activity levels for all product lines, exacerbated by pricing declines, primarily in North America.”
Halliburton is still looking for regulatory approval to acquire competitor Baker Hughes.
“We are enthusiastic about and fully committed to closing this compelling transaction, and are confident we can achieve cost synergies of nearly $US2 billion, regardless of market conditions or any cost reduction actions taken by either company to date,” CEO Dave Lesar said.
The stock, down 44% over the past 12 months, jumped 3% in premarket trading.