Halliburton Co suffers 32% slump in profit due to weak demand in North America

in halliburton •  5 years ago 

Halliburton Co reported a 32% fall in their quarterly profit due to weak demand in its biggest market, North America.

Revenue from North America reported to fall 21% in the third quarter, mainly due to lower activity and pricing in pressure pumping. Reports also stated the fall in profit was due to decrease in demand for services and equipment from oil and gas producers.

Halliburton and other companies are battling decreased spending by oil and gas producers as investors aim for higher returns instead of growth in a time of weak oil price.

Rival Schlumberger recorded a $1.58 billion goodwill impairment charge connected to its North American pressure pumping business.

Halliburton’s net profit fell to $295 million, amounting to 34 cents per share, in the third quarter until Sept. 30. One year ago it was $435 million, amounting to 50 cents per share.

According to Refinitiv IBES data, analysts had an average estimate of 34 cents per share.

Halliburton’s revenue fell 10%, amounting to $5.55 billion, a little lower than analysts’ estimate of $5.80 billion.

http://lexatrade.com/news/halliburton-co-suffers-32-slump-in-profit-due-to-weak-demand-in-north-america

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