The penalty of pulling out of its takeover of rival Baker Hughes plunged energy services giant Halliburton deep into the red during the second quarter.
Houston-based Halliburton said yesterday net losses totalling £2.4billion net losses for the three months to June 30, against profits of about £40million a year earlier, were fuelled by a £2.6billion-plus termination fee for its aborted Baker Hughes deal.
It was announced in May the £22billion mega-merger of the two global energy service giants would not go ahead, with the pair citing poor market conditions and “challenges” getting it past regulators.
Halliburton and Baker Hughes were heading for a tie-up to create a business employing more than 136,000 people, including several thousand in the north-east, in more than 80 countries.
The enlarged group would have run energy service market leader Schlumberger close in terms of annual revenue.
In yesterday’s results statement, Halliburton chief executive David Lesar said the group had shown “resilience in the face of another challenging quarter marked by lower activity levels and continued pricing pressure around the globe”.
But total revenue was down by more than one-third, at £2.9billion, despite a “seasonal recovery” of activity in the North Sea.
The second quarter losses pushed the half-year trading deficit to nearly £4.3billion, compared with losses of £446.6million a year ago, while total revenue was down by 38% at £6.1billion.
According to Mr Lesar, the troubled North American market has turned.
He said: “We expect to see a modest uptick in rig count during the second half of the year. With our growth in market share during the downturn, we believe we are best-positioned to benefit from any recovery, including a modest one.
“Internationally, we are maintaining our service footprint, managing costs and continuing to gain market share.”
The oil major was still forced to cut 5,000 more jobs in the second quarter.
The company cut nearly 9 percent from from its global headcount in the second quarter, leaving staff at 50,000, a spokesperson said.
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