Halliburton’s segment-wise performance
From 3Q15 to 3Q16, Halliburton’s (HAL) Drilling and Evaluation (or D&E) segment revenues fell 30%. From 3Q15 to 3Q16, its Completion and Production (or C&P) segment revenues fell ~32%.
From 3Q15 to 3Q16, Halliburton’s revenues from North America fell ~33%. Its revenues from Middle East/Asia were more resilient, falling 24% year-over-year in 3Q16. You can read more about Halliburton in Market Realist’s What’s Ahead for Halliburton?
Halliburton’s operating income
With respect to operating income, Halliburton’s (HAL) D&E segment fell 62% in 3Q16 over 3Q15 due primarily to low rig count, lower pricing for HAL’s products and services, and upstream producers’ budget cuts.
The C&P segment’s operating income fell 85% in 3Q16 over 3Q15. This was primarily due to decreased pressure pumping services revenues, lower activity in the Gulf of Mexico, and lower completion tool sales in Nigeria. Higher United States land stimulation activity partially mitigated these negative effects. Halliburton comprises 0.22% of the iShares S&P 500 ETF (IVE).
Halliburton’s net income
Halliburton’s (HAL) reported net loss deteriorated to $5.6 billion in 9M16 compared to its $643 million net loss in 9M15. In comparison, Schlumberger’s (SLB) net loss was ~$1.5 billion, while Baker Hughes’s (BHI) net loss was $2.3 billion in 9M16. Nabors Industries’s (NBR) net loss was $694 million in 9M16.
In its 3Q16 earnings conference call, Halliburton’s management provided an estimate of its drivers in the next quarter. In the next article, we’ll look at HAL’s management outlook during the past few quarters.