Baker Hughes sinks deeper into red

Oilfield services provider Baker Hughes widened its second quarter 2016 loss, mainly due to impairments and restructuring charges.

On a GAAP basis, net loss attributable to Baker Hughes for the second quarter was $911 million, compared to $188 million in the second quarter of 2015.

The second quarter includes charges related to goodwill impairment, asset impairments, restructuring, and inventory, almost entirely offset by the merger termination fee paid to the company by Halliburton as a result of the termination of the merger agreement on April 30, 2016.

Adjusted net loss (a non-GAAP measure) for the quarter was $392 million. Adjusted net loss excludes adjustments totaling $519 million after-tax, which are net of the ($3.5) billion merger termination fee.

Revenue for the quarter was $2.4 billion, down $1.6 billion, or 39% compared to the same quarter last year and revenue that that amounted to $3.968 billion.

The oilfield services company said that revenue for the quarter continued to be impacted by activity declines in the market and increasing pricing pressures.

For the quarter, capital expenditures were $70 million, down $188 million, or 73% compared to the second quarter of 2015. The company said that the reduction in capital expenditures is attributable to reduced activity levels and its focus on capital discipline.

Corporate costs were $29 million, compared to $32 million in the prior quarter and $42 million in the second quarter of 2015. The year-over-year reduction in corporate costs is mainly due to workforce reductions and lower spending.

Offshore Energy Today Staff

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