Image source: Halliburton
Although Halliburton ended 2020 with a nearly $3 billion loss for the year after demand for drilling work dried up during one of the worst oil busts in decades, company executives are hopeful they’re on the cusp of a rebound.
In its fourth-quarter earnings report released Tuesday, the Houston-based energy service firm said it had a net loss of $235 million, or $0.27 per share.
Halliburton, one of the largest oilfield services companies, posted $3.24 billion in revenue during the period, which beat analyst expectations of $3.21 billion.
For the full year, the company reported a $2.95 billion loss, or $3.34 per share, compared to losses of $1.12 billion for 2019. Total annual revenue stood at $14.45 billion, a 36% decrease, according to the report.
Despite a drop in client demand for drilling activity due to declining crude prices, Halliburton said it managed to improve its bottom line through cost cutting.
Measures included reducing its workforce by thousands of employees, a move the company said was done in response to the COVID-19 pandemic and oil price crash.
Altogether, the firm generated free cash flow of $1.15 billion for the year, higher than the $1 billion it targeted.
Jeff Miller, chief executive officer, chairman and president, said in a statement, “I am pleased with our solid execution in the fourth quarter and for the full year. Our swift and decisive cost actions and service delivery improvements reset our earnings power, delivering strong margins and cash flow.”
Halliburton expects oil and gas activity internationally to pick up this year, he said.
“I am optimistic about the activity momentum I see in North America and expect international activity to bottom in the first quarter of this year,” Miller said. “I am also encouraged by the growing pipeline of international customer opportunities and the unfolding global activity recovery.”
Source: Equities News