Halliburton (NYSE:HAL) has revealed third quarter results which have missed market expectations.
The company this morning told investors it had made a loss as activity in the sector slowed amid weak oil prices, and at the same time it made write downs on asset values.
Third quarter revenue amounted to US$5.6bn, down from US$5.9bn in the prior quarter and just slightly below market expectations of US$5.64bn.
There were some US$257mln of asset write-offs and severance costs during the three months to September 30.
It revealed a US$54mln loss for the third quarter, versus a US$1.2bn profit in comparative period of 2014. And income from continuing operations amounted to US$265mln compared to US$380mln in the preceding three months of this year.
“This is a challenging market, but our strategy remains the same,” said Jeff Miller, Halliburton president.
Halliburton is in the process of acquiring oil and gas services peer Baker Hughes, via a US$35bn deal.
Dave Lesar, Halliburton chairman and chief executive, said: “As we continue to work toward the closing of the pending Baker Hughes acquisition, we are diligently focused on finalizing all regulatory filings, completing the divestiture process, and preparing for integration activities after the closing of the deal.”
Lesar added that Halliburton is enthusiastic and fully committed to complete the Baker Hughes transaction, which he describes as “compelling”.
The combination of the businesses will achieve annual synergies of nearly US$2bn, Lesar says.
Lesar told investors that when the US oil market recovers, it will be sharp.
“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,” he said.
“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.”