Halliburton Ends 2016 with Huge Loss

US oil and gas services giant Halliburton reported a full year loss of $5.77bn January 23, which compares with its 2015 loss of $667mn.

It made a 4Q2016 loss of $153mn, compared to a 3Q2016 profit of $7mn, but that followed a huge $3.2bn loss in 2Q 2016. 

Adjusted 4Q2016 income from continuing operations, excluding impairments and other charges and a class action lawsuit settlement, was $35mn.

Total revenue for full year 2016 was $15.9bn, a decrease of $7.7bn, or 33%, from 2015.

Photo credit: Halliburton

CEO Dave Lesar said: “Despite the positive sentiment surrounding the North American land market, it is important to remember that our world is still a tale of two cycles. The North America market appears to have rounded the corner, but the international downward cycle is still playing out.”

Last month, Halliburton reached an agreement in principle to settle the Erica P. John Fund class action lawsuit that had been pending for over 14 years and which asserted claims in connection with accounting for long-term construction projects and asbestos liability disclosures. As a result, it incurred a ‘corporate and other’ charge of $54mn in 4Q2016.

Mark Smedley