Services firm Halliburton managed to beat third quarter earning targets on Tuesday despite a 6 percent slide in revenues.
The company booked $265 million in income from continuing operations for the third quarter , or $0.31 per diluted share, excluding special items, down from $380 million last quarter but beating analyst estimates of $0.27 per diluted share, Bloomberg said.
Third quarter adjusted operating income fell to $506 million from $643 million in the second quarter.
Halliburton’s total third quarter revenue ticked down to $5.58 billion from $5.9 billion last quarter, just missing analysts targets of about $5.671 billion, Zacks said.
The firm recorded $257 million in after-tax company-wide charges primarily related to asset write-offs and severance costs, nearly unchanged from the $258 million in after-tax charges taken last quarter.
The company said the charges were prompted by the current energy market downturn and “its corresponding impact on the company’s business outlook.”
Halliburton reported a $54 million loss from continuing operations, or $0.06 per diluted share, down from a reported income of $55 million in the previous quarter.
Third quarter operating income plummeted to $43 million from $1.63 billion during the same quarter last year.
North America third quarter revenue declined 7 percent sequentially with operating income “at near breakeven levels” while the company continues to retain its service delivery infrastructure in anticipation of its merger with Baker Hughes, Halliburton president Jeff Miller said.
The company’s Completion and Production (C&P) revenue dropped to $3.2 billion from $5.4 billion during the same period last year.
Halliburton said the decline is primarily tied to falling activity and pricing pressure for all product service lines in the United States, reduced pressure pumping activity in Latin America, lower stimulation activity in Middle East/Asia and reduced pressure pumping services and completion tools sales in Europe/Africa/CIS.
C&P operating income fell 48 percent sequentially to $163 million while North America C&P operating income fell 167 percent from the second quarter, primarily due to reduced activity levels and downward pricing adjustments for most product service lines.
The company said Drilling and Evaluation (D&E) revenue dipped 4 percent sequentially to $2.4 billion in the third quarter as “decreased drilling and logging services in North America, coupled with a decline in drilling services and offshore testing activity across all regions, more than offset increased project management activity in Middle East/Asia.”
D&E operating income held steady at $401 million from the second quarter.
“There are a number of moving parts in the market today, and we are not going to try to call the exact shape of recovery, but we expect that the longer it takes, the sharper it will be. Ultimately, when this market recovers we believe North America will respond the quickest and offer the greatest upside, and that Halliburton will be positioned to outperform,” CEO David Lesar said.
Halliburton recorded Baker Hughes acquisition-related after-tax costs of $62 million in the third quarter, as compared to $67 million after-tax diluted in the second quarter.
The companies put more assets on the sale block last September as they wait for regulators to approve their pending $34.6 billion merger.
The companies also amended their timing agreement with the Antitrust Division of the U.S. Department of Justice (DOJ) to extend the earliest closing date by three weeks to December 15, 2015, or or 30 days following the date that both companies have certified final, substantial compliance with the DOJ second request.