Tough Times: Halliburton’s Net Income Drops 93% in 1 Year

chart going downIt’s tough times in the oil patch. Halliburton, the world’s second largest oilfield services company, posted second quarter financial results yesterday. While the marketers and bean counters do their best to put a happy face on the results, there’s no papering over the fact that Halliburton and other oilfield services companies have been hammered hard by the downturn in oil and natural gas prices and the rapid decline in drilling, as evidenced by lower rig counts. Halliburton’s revenue for 2Q14 (a year ago) was $8.051 billion. Revenue for 2Q15 was $5.919 billion–a drop of 26% year over year. When you add in expenses of all types, the picture becomes even clearer–and bloodier. In 2Q14 Halliburton’s net income was $775 million. In 2Q15 it was $53 million–which is a 93% drop year over year. It’s clear that oilfield services companies like Halliburton are being asked to discount their prices by producers and consequently they bear the brunt of the downturn…

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