Baker Hughes warned investors last week it would take a US$1.5 billion charge in the first quarter, and a US$15 billion goodwill impairment charge as it reduced the long-term prospects for its oilfield and equipment unit.
The company anticipates spending in North America will contract a by at least 50% this year.
Revenue of US$5.43 billion for the quarter was down 3% from a year earlier. Net loss attributable to Baker Hughes stood at US$10.21 billion, compared with a profit of US$32 million a year earlier.
“The outlook for oil and gas demand and supply appears equally uncertain,” Chief Executive Lorenzo Simonelli said in a statement.
Baker Hughes has cut its 2020 budget by over 20% from the prior year and is restructuring operations. It is accelerating the exit or shutdown of non-core product lines, including its North American full-service drilling and completions fluids business, Simonelli said.
Baker Hughes warned it has seen some business disruptions due to mobility issues stemming from coronavirus lockdowns. The company received an “essential business” designation from the Italian government and said all its plants in the country were operational but not at full capacity.
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