Halliburton slashes 6,000 jobs

Halliburton slashed 6,000 jobs during the first quarter of 2016, a period in which the worldwide drilling rig count fell to its lowest level since 1999 amid the continued global downturn in commodities.

The oilfield services firm said in an update that it would postpone its quarterly earnings call to May 3, due to the April 30 deadline set by Halliburton and Baker Hughes to obtain the necessary regulatory approvals for their pending merger.

The US Department of Justice filed an anti-trust lawsuit on April 6 seeking to block the deal, meaning the firms will almost certainly need to extend the deadline in order to complete the transaction.

Total company revenue fell 40% year-on-year to US$4.20bn during the quarter, with the average US rig count down 27% sequentially.

The US rig count has fallen almost 80% since peaking in 4Q14, Halliburton said, projecting that drilling activity will bottom out during the second quarter of 2016. "Once we see stability in the rig count, our cost cutting measures will start to catch up," Halliburton said.

Halliburton said it has reduced its global workforce by nearly one third since the downturn began in the second half of 2014.

LATAM

Revenue from Latin America dropped to US$541mn in 1Q16, down 43% from US$949mn in 1Q15, Halliburton said, with operating income in the region falling 61% year-on-year to US$48mn.

"The international markets continue to hold up better than North America, but they are certainly not immune to the macro challenges," said company president Jeff Miller.

Halliburton cited reduced activity in Mexico, Brazil and Colombia, and said it decided during the quarter "to begin curtailing activity in Venezuela."

Halliburton also reported an uptick in demand for unconventional technology in Argentina, home to the Vaca Muerta shale formation.