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Halliburton Q1 revenue falls on weak oil prices

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Halliburton Q1 revenue falls on weak oil prices

Halliburton Co. said Monday its revenue and earnings for the first quarter fell as falling oil prices and the sluggish energy market worldwide took a toll. The Houston-based provider of oil field services booked $418 million of net income from continuing operations, down from $623 million a year ago. Revenue fell 4% year-over-year to $7.1 billion. In a statement, CEO Dave Lesar noted that the rate of its revenue decline was better than the 19% decline in the global rig count. It “represented industry-leading performance amidst a challenging commodity price environment,” said CEO Dave Lesar in a statement released with the earnings announcement.AFP 537640991 A EPN EPN USA LA

Adjusted earnings per diluted share of 49 cents beat analysts’ estimate of 41 cents. Halliburton shares were up just over 3% at $48.31 in afternoon trading Monday. With China and other large customers importing less oil and U.S. shale production rising, prices are down about 21% in the last year, settling at about $60 per barrel. While a boon for penny-counting consumers, falling oil prices have left commodities sectors scrambling for answers, resulting in layoffs, mounting losses and massive write-downs of charges.

Halliburton has laid off approximately 9,000 employees during the two most recent financial quarters, Christian Garcia, the company’s acting chief financial officer, said during a Monday conference call with Wall Street analysts. The reductions represented more than 10% of Halliburton’s global headcount. Halliburton recorded $823 million in charges during the first quarter related to asset write-offs, inventory write-downs, severance costs and other charges, a move that contributed to its operating loss of $548 million. Its profit margins were also impacted by oil-producing customers seeking price concessions and reducing drilling activities, it said.

Halliburton released the financial results as the company pushes forward with it planned acquisition of rival oil field-servicing company Baker Hughes in a $34.6 billion cash and stock deal. Miller told financial analysts Halliburton normally would have made deeper cuts in its operating structure during the industry downturn, but held off while preparing to close the Baker Hughes deal.

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