Third Straight Quarterly Loss for Baker Hughes

Share:

Baker Hughes Co reported a third straight quarterly loss on Wednesday, as a coronavirus-induced slump in commodity prices continued to hurt demand for equipment and services.

Producers have been drilling fewer wells following a collapse in crude oil prices this year as demand for oil products has sunk. The downturn has hit rivals Schlumberger NV and Halliburton Co as well, with both reporting quarterly losses.

Global oil prices were trading around $42.46 a barrel on Wednesday, down about 1.62%, as rising coronavirus cases in places like Europe and the United States threaten to stall any recovery in demand.

“After significant turmoil during the first half of the year, oil markets have somewhat stabilized. However, demand recovery is beginning to level off and significant excess capacity remains, which could create volatility in the future," said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.

Baker Hughes in July vowed to further cut costs to prepare for a longer period of oil price volatility.

The company was on track to "right-sizing its business" and to achieve $700 million in cost savings by the year-end, Simonelli said on Wednesday.

Revenue from Baker Hughes' oilfield services unit, which accounts for nearly 46% of its total sales, fell 31% to $2.31 billion in the third quarter.

Orders in Baker Hughes' oilfield equipment business were down 58% year-over-year for the third quarter.

Shares were up about 2.13% to $13.92 in premarket trading.

Net loss attributable to the company was $170 million, or 25 cents per share, in the three months ended Sept. 30, compared with a profit of $57 million, or 11 cents per share, a year earlier.

On an adjusted basis, the company earned 4 cents per share, in line with Wall Street expectations, according to data from Refinitiv.

Revenue fell 14% to $5.05 billion, but beat analysts' estimate of $4.78 billion.

 (Reporting by Arathy S Nair in Bengaluru and Liz Hampton in Denver; Editing by Shounak Dasgupta and Bernadette Baum)

No comments

More Popular Posts

About Crude Oil Brokers Ltd

Crude Oil Brokers Ltd is a dedicated global broker and facilitator of crude oil buying and selling. We work directly with crude oil buyers and crude oil sellers worldwide. We are a United Kingdom and Nigerian based firm, privately owned and devoted to the brokering of crude oil and other petroleum products buying and selling.

We have buyers and sellers of;

1. Nigerian Bonny Light Crude Oil, BLCO

2. D2 Diesel Fuel, JP54 Jet Fuel, Mazut etc.

3. Saudi Light Crude Oil, SLCO

4. Iraqi Light Crude Oil

If you are a buyer or seller of crude oil or other petroleum products or have mandate to buy or sell any of the above oil products, do contact us because we could be of help.

To contact Crude Oil Brokers, click here ». To learn more about Crude Oil Brokers Ltd, click here


Crude Oil Brokers