Halliburton Company (NYSE: HAL) reported its financial results for the quarter ended March 31, 2020 today.
Halliburton slipped to a loss in the first quarter of 2020 from a profit last year due to the inclusion of impairments, other charges and a loss on the early extinguishment of debt. The top-line dropped by 12% due to the dual shock of a massive drop in global oil demand coupled with a resulting oversupply.
The company expects activity in North America’s land to sharply decline during the second quarter and remains depressed through year-end, impacting all basins. The company is taking swift actions to reduce overhead and other costs by about $1 billion, lower capital expenditures to $800 million, and improve working capital.
Oil demand has significantly deteriorated as a result of the COVID-19 pandemic outbreak and corresponding preventative measures taken around the world to mitigate the spread of the virus. For the remainder of 2020, the company expects a further decline in revenue and profitability, particularly in North America.