Saturday, April 23, 2016

Halliburton reports $2.1 billion charge on job cuts, assets

HOUSTON (Bloomberg) -- Halliburton Co. said it’s booking a $2.1-billion expense in the first quarter for cutting jobs and writing off assets, giving some results early and delaying the full earnings release as it strives to wrap up a takeover of rival Baker Hughes Inc.

The world’s largest provider of fracing services is postponing its full earnings report to May 3 from April 25 because of the deadline to complete the deal with Baker Hughes by the end of this month, the company said Friday in a statement.

Halliburton, which announced the takeover in November 2014 in a deal now worth about $25 billion to better compete against industry leader Schlumberger Ltd., is facing a Justice Department lawsuit to stop the merger on concern it will harm competition.

Oilfield service providers were the first to feel the pain when crude prices began falling in the middle of 2014. Of the more than 250,000 jobs cut globally in the energy industry during the downturn, service providers continue to be the most heavily impacted after customers slashed more than $100 billion in spending last year, with promises of more cuts to come.

The industry is going through an unprecedented downturn with a “full-scale cash crisis,” Schlumberger CEO Paal Kibsgaard said Thursday.

Shares of Halliburton were little changed in after-hours trading after closing 1.3% higher at $40.84.


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