Halliburton on Monday reported a net income of $75 million for the quarter, compared to $511 million a year ago.
Adjusted for impairments and other charges net income was $303 million. Halliburton recognized impairments and other charges during the second quarter of 2019 of $247 million, pre-tax.
Of the $247 million, $108 million was for long-lived asset impairments, $58 million was for severance costs, $33 million for inventory write-downs, and $48 million was classified as “other.”
“These charges consisted primarily of asset impairments and severance costs, as the company continues to adjust its cost structure and footprint to the current operating environment,” Halliburton said.
Revenue for the quarter was $5,9 billion, compared to $6,1 billion a year ago.
Completion and Production segment revenue fell from $4,1 billion in the second quarter of 2018, to $3,8 billion in Q2 2019. Drilling and Evaluation revenue grew to $2,1 billion, up from $1,98 billion a year ago.
Earlier this month, Halliburton said it had won the first offshore project in Kuwait since the early 1980s. Halliburton and Kuwait Oil Company signed an Integrated Offshore Drilling Services contract for six high-pressure high-temperature (HPHT) exploration wells on two jack-up rigs in the Arabian Gulf.
Halliburton did not provide the financial details on the deal, however, Bloomberg has reported it to be around $597 million.