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Image courtesy of Halliburton.

Halliburton posted a $28 million loss from continuing operations in the fourth quarter as low oil prices and a drilling activity slowdown weighed on revenues.

The Houston-based company reported a fourth quarter income from continuing operations of $270 million, or $0.31 per diluted share, excluding special items, up from $265 million in the third quarter.

Fourth quarter adjusted operating income fell to $473 million, down from an adjusted operating income of $506 million in the third quarter of 2015.

Halliburton’s total revenue in the fourth quarter of 2015 came in at $5.1 billion, down from $5.6 billion in the third quarter of 2015.

Halliburton recorded company-wide after-tax charges of about $192 million in the fourth quarter primarily related to asset writeoffs and severance costs, down from $257 million in the third quarter of 2015.

The company said the charges were “a result of the downturn in the energy market and its corresponding impact on the company’s business outlook.”

Halliburton also recorded $79 million in after-tax costs related to its acquisition of Baker Hughes in the fourth quarter, compared to $62 million after-tax in the third quarter of 2015.

The company incurred a $27 million after-tax interest expense in the fourth quarter associated with a $7.5 billion debt issuance.

Reported loss from continuing operations was $28 million, or $0.03 per diluted share, in the fourth quarter, compared to a reported loss from continuing operations of $54 million in the third quarter.

Reported operating income was $86 million for the fourth quarter, up from a reported operating income of $43 million for the third quarter of 2015.

Total revenue for the full year of 2015 dropped 28 percent from 2014 to $23.6 billion.

The company reported a $165 million operating loss for 2015, down from a reported operating income of $5.1 billion for 2014.

“Both revenue and operating income declines resulted from the impact of reduced commodity prices creating widespread pricing pressure and activity reductions on a global basis,” Halliburton said.

Adjusted income from continuing operations for 2015 was $1.3 billion, or $1.56 per diluted share, down from $3.4 billion, or $4.02 per diluted share, the previous year.

Reported loss from continuing operations for 2015 was $666 million, or $0.78 per diluted share, compared to a reported income from continuing operations of $3.4 billion in 2014.

“Despite pricing and activity headwinds, we were able to improve 2015 operating margins due to a focus on cost management. North America revenue declined 39% compared to 2014, as a result of unprecedented declines in activity, with the U.S. land rig count ending the year down 64% from the 2014 peak,” Halliburton president Jeff Miller said.

Completion and Production (C&P) revenue in the fourth quarter fell about 12 percent sequentially to $2.8 billion primarily due to “activity and pricing headwinds in all regions.”

The company’s C&P operating income was $144 million, a 12 percent decline compared to the third quarter of 2015.

Drilling and Evaluation (D&E) revenue in the fourth quarter of 2015 fell 5 percent from the third quarter to $2.3 billion on an operating income  of $399 million, essentially flat compared to the third quarter of 2015.

Commenting on Halliburton’s pending acquisition of Baker Hughes, Halliburton CEO and chairman Dave Lesar said the copmany is continuing its discussions with competition authorities and recently “offered an enhanced set of divestitures in an effort to resolve competition-related concerns as soon as possible.”

The pending $35 billion merger between services firms Halliburton and Baker Hughes failed to win approval from the U.S. Justice Department last month after the deal’s timing agreement with the Antitrust Division expired without a settlement and without the agency filing litigation to block the deal.

Halliburton said in December that both “companies intend to continue their discussions with the DOJ, and remain focused on completing the transaction as early as possible in 2016.”

Halliburton refiled a request with EU anti-trust regulators earlier this month seeking approval for the merger.

“2016 is expected to be another challenging year for the industry. We believe our customers will remain focused on cost per barrel optimization and gaining higher levels of efficiency, both of which bode very well for Halliburton. 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,” Lesar added.