Halliburton loses $643 million in 1Q

Oil field services firm Halliburton Co. (NYSE: HAL) posted a loss of $643 million during the first quarter amid what CEO Dave Lesar called an “unprecedented decline in drilling activity” in North America.

The company blamed the weak quarter on the downturn in the oil market, which led to $823 million in charges including asset write-offs, inventory write-downs and severance costs. Halliburton earned $622 million during the same period a year earlier.

Halliburton also recorded a $199 million loss due to Venezuelan currency devaluation and $35 million in costs from the company’s acquisition of Baker Hughes Inc. (NYSE: BHI).

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Total revenue fell to $7.1 billion during the first quarter from $7.3 billion during the same quarter last year. The 4-percent drop in revenue came as the number of rigs exploring for oil and natural gas declined 19 percent worldwide. The U.S. rig count declined 21 percent during the first quarter, according to Halliburton.

“Our global customer base has responded by lowering activity levels and seeking price concessions, which has impacted our margins,” Lesar said in an earnings statement issued Monday. “As evidenced by the restructuring charges taken during the quarter, we are taking steps to help mitigate the ongoing impact.”

Halliburton, like other companies in the industry, has struggled with lower oil prices. Spot prices of West Texas Intermediate crude rose 2 percent to $56.76 Monday, a little more than half of highs surpassing $100 last summer.

In November, Halliburton said it employed 1,200 workers at its Fort Lupton facility. However, the company in February said it anticipated layoffs of between 6.5 and 8 percent of its global headcount, which was to affect all areas of its operations.

Globally, Halliburton saw increased activity from business in South America, including Venezuela, and the Middle East and Asia during the first quarter. The company’s Europe, Africa and Commonwealth of Independent States sector declined, however.

Halliburton shares rose more than 1 point, or 3 percent, to $48.30 in afternoon trading.