The coronavirus pandemic stung oilfield service company Halliburton with a $1.7 billion (£1.3bn) loss in the second quarter.
Halliburton reported $3.2 billion of revenue during second quarter, a 46 percent drop compared with the $5.9 billion of revenue during the same period last year.
The company’s $1.7 billion loss was a dramatic swing from the $75 million profit during the second quarter of 2019.
Halliburton took a $2.1 billion write down on the value of its assets in the quarter. The coronavirus pandemic has cut global demand for crude oil, causing prices to fall and companies to cut back drilling and completion activity.
Falling oil prices caused by the pandemic and an oil price war between Russia and Saudi Arabia caused Halliburton to reduce the value of assets by $1.1 billion during the first quarter.
Shutdown orders in the United States, production cuts and reduced oil field activity became more pronounced in the second quarter, when in April, prices for West Texas Intermediate, the U.S. benchmark for crude, went negative.
The effects were most strongly felt in the shale fields of North America, where the company’s second-quarter revenue of $1 billion marked a 68 percent drop compared to the $3.3 billion of revenue one year prior.
Minus the write downs and other charges, Halliburton reported earning $456 million of free cash flow, an increase from the $12 million reported during the first quarter.
“Halliburton’s second-quarter performance in a tough market shows we can execute quickly and aggressively to deliver solid financial results and free cash flow despite a severe drop in global activity,” Halliburton CEO Jeff Miller said.
“Our results demonstrate a significant and sustainable reset to the power of our business to generate positive earnings and free cash flow.”
This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.