Halliburton Co, the world’s No 2 oilfield services provider, reported a better-than-expected quarterly adjusted profit as deep cost cuts helped offset the impact of a drop in drilling activity.
Halliburton, like rival Schlumberger, said 2016 would be another challenging year for the industry.
Several oil and gas producers have scaled back drilling and slashed capital spending in response to a more than 70% fall in oil prices since June 2014.
Excluding a $192mn impairment charge and costs related to its pending acquisition of Baker Hughes, Halliburton earned 31¢ per share, higher than analysts’ average estimate of 24¢, according to Thomson Reuters I/B/E/S.
Operating margins in the company’s North America operations, which account for more than half of Halliburton’s revenue, improved 1.6 percentage points in the quarter ended December 31.
Chief executive Dave Lesar said the company, which is awaiting regulatory approval for the Baker Hughes deal, was focused on pending regulatory reviews and divestitures required to alley competition-related concerns.
Total revenue fell 42% to $5.08bn, including a 57% drop in North American revenue, mainly due to weak drilling activity and pricing.
The net loss attributable to the company was $28mn, or 3¢ per share, in the quarter, compared with a profit of $901mn, or $1.06 per share, a year earlier.