The Strategist

Halliburton writes off $ 312 million investment in the oil industry of Venezuela

04/24/2018 - 14:51

One of the world's largest companies serving the oil and gas industry, Halliburton, reported writing off $ 358 million of investments in Venezuela. This is the last package of funds invested earlier in the oil sector of the Latin American country.

The financial director of Halliburton, Christopher Weber, explained the write-off with deterioration of the political climate in the country, as well as with the fall in the rate of the Venezuelan currency. In addition, he recalled the US sanctions against Venezuela, which prohibit buying or selling new debts of the national oil company Petroleos de Venezuela (PDVSA). Last year, the company has already wrote off $ 647 million due to late payment just on the part of PDVSA.

The American corporation intends to continue its work in Venezuela, but in a reduced format, and will be wary of new investments in the Venezuelan oil industry in the future.

The amount of write-offs in the company’s  financial statements for the first quarter of 2018 was $ 312 million.

As stated in Halliburton’s press release, about half of this amount was made by unpaid invoices, and the second part of the sum was comprised of fixed assets, inventory, and other liabilities.

In the first quarter, Halliburton recorded a net profit of $ 46 million, or 5 cents per share, compared to a net loss of $ 32 million, or 4 cents per share, for the comparable period of 2017. Adjusted earnings (excluding write-offs and impairment of assets) amounted to 41 cents per share, the consensus forecast of analysts polled by FactSet was 40 cents per share.

Halliburton's quarterly revenue jumped 34%, from $ 4.279 billion to $ 5.740 billion. Experts on average expected this figure at $ 5.739 billion.

Halliburton shares in the past 12 months rose in price by 10.4%, during the preliminary bidding on Monday their value does not change.