Halliburton Co (HAL) incurred a $2.1 billion impairment charge as oil priced dropped and drilling in North America virtually collapsed. The company posted a net loss of $1.7 billion, or $1.91 per share, in the second quarter, versus with a profit of $75 million, or $0.09 per share. Halliburton posted a second-quarter adjusted profit of $0.05 per share. Analysts called the results “simply outstanding” versus expectations as “structural cost cuts are clearly bearing fruit.”
Along with its peers, Schlumberger (SLB) and Baker Hughes (BKR), Halliburton suffered a plunge in demand for drilling services. It expects third quarter revenue to fall by the low single digits, due to lower drilling activity, while North American production will remain “structurally lower”. The second quarter “marked the near total shutdown of the U.S. oilfield.”