Hal­libur­ton says it has cut 9,000 jobs in wake of oil’s price drop

The China Post - - MARKETS -

Hal­libur­ton Co. has cut 9,000 jobs — more than 10 per­cent of its work­force — in about six months and is con­sid­er­ing more cost-cut­ting moves as fall­ing oil prices sap de­mand for its drilling help.

Hal­libur­ton ex­ec­u­tives dis­closed the job cuts Mon­day on a con­fer­ence call with in­vestors. The Hous­ton oil­field-ser­vices com­pany re­ported a loss of US$643 mil­lion (NT$20.01 bil­lion) in the first quar­ter.

Oil prices plunged start­ing last sum­mer, lead- ing to a decline in drilling ac­tiv­ity. Spot prices for crude have risen slightly since early Jan­uary but re­main about half their level of last July.

Hal­libur­ton Pres­i­dent Jeff Miller said he wasn’t ready to say the worst has passed, but that such slumps usu­ally last about three quar­ters.

The oil-mar­ket decline caused Hal­libur­ton to take US$1.2 bil­lion in charges in the first quar­ter, in­clud­ing sev­er­ance and write-offs, said the com­pany’s act­ing chief fi­nan­cial of­fi­cer, Chris­tian Garcia.

Garcia added that ad­di­tional moves are likely in the sec­ond quar­ter but will prob­a­bly re­sult in much smaller charges.

Hal­libur­ton said Mon­day that it lost US$643 mil­lion, or 76 cents per share, in the first quar­ter. Still, the re­sults ex­clud­ing write­downs and other one-time costs amounted to an ad­justed profit of 49 cents per share, beat­ing the fore­cast of 41 cents among 19 an­a­lysts sur­veyed by Zacks In­vest­ment Re­search.

Rev­enue was $7.05 bil­lion, higher than an­a­lysts’ es­ti­mate of US$7.03 bil­lion.

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