SHARE
Image courtesy of Halliburton/Facebook.

Halliburton managed to beat expectations despite posting a $3.8 billion operating loss in the second quarter.

The company booked a $3.88 billion operating loss for the second quarter on $3.83 billion in revenues, down 9 percent from the first quarter.

Houston-based Halliburton reported a loss from continuing operations of $3.73 per diluted share and an adjusted loss from continuing operations of $0.14 per diluted share, excluding special items.

According to Marketwatch, analysts had expected an adjusted loss from continuing operations of $0.19 per share.

Halliburton reported an adjusted operating income of $62 million compared, a 72 percent decline from the previous quarter.

North America revenue declined 15 percent sequentially to $1.5 billion, outperforming the average U.S. rig count that was down 23 percent.

An operating loss of $124 million was also recognized for the North America region.

“We believe the North America market has turned. We expect to see a modest uptick in rig count during the second half of the year,” CEO and chairman Dave Lesar said.

International second quarter operating income fell $64 million from the second quarter to $246 million on revenue of $2.3 billion, a 4 percent sequential decline.

Latin America revenue fell to $476 million in the quarter, a 12 percent decline from the first quarter.

Operating income for Latin America sunk 54 percent from the first quarter to $22 million.

“These declines were a result of reduced activity in Brazil, Mexico and Colombia, and Halliburton’s decision to curtail activity in Venezuela,” Halliburton said.

Europe/Africa/CIS revenue ticked up 2 percent sequentially to $795 million in the second quarter, with operating income climbing 12 percent sequentially to $64 million.

Middle East/Asia revenue in the second quarter slipped 3 percent sequentially to $1 billion, with operating income falling 22 percent from the first quarter to $160 million.

The Completion and Production segment reported an operating loss of $32 million in the second quarter on revenues of $2.1 billion, down 9 percent from the first quarter.

Operating income for the Drilling and Evaluation segment fell 36 percent sequentially to $154 million on revenue of $1.7 billion.

Halliburton paid a $3.5 billion termination fee tied to its failed merger with Baker Hughes that was recognized during the second quarter.

Halliburton also said that it mandatorily redeemed $2.5 billion of senior notes during the second quarter of 2016, resulting in $41 million, pre-tax, of redemption fees and associated costs.

Halliburton also recorded company-wide impairments and other charges in the second quarter totaling about $423 million, pre-tax, primarily tied to severance costs and asset impairments as it continued to right-size its cost structure.

“Our activity outlook has not changed and our strategy is working. During the coming recovery, we plan to scale up our integrated delivery platform by addressing our product line building blocks one at a time through a combination of organic growth and selective acquisitions,” Lesar said.