Revenue from Baker Hughes’ oilfield services business, which accounts for about half of total sales, tumbled 26% to US$2.41 billion in 2Q20. Total revenue fell 21% to US$4.74 billion.
The company expects North American drilling and completions spending to be down 50% versus last year, and international spending to drop by 15% to 20%.
Baker Hughes has cut its 2020 budget by over 20% y/y and disclosed plans to exit or shut down non-core product lines, including North American full-service drilling and completions fluids business.
“We are preparing for potential future volatility, while also focusing on structurally reducing our cost base,” Chief Executive Lorenzo Simonelli said, pointing to the risks from a second wave of coronavirus cases and high unemployment that could lead to economic uncertainty.
The company, which provides equipment for LNG projects, gave a bleak outlook for near-term LNG markets, warning it expected just one to two final investment decisions on new projects this year.
Net loss attributable to the company widened to US$201 million in 2Q20, from a loss of US$9 million a year earlier.
The quarter included an income-tax gain of US$75 million related to the federal pandemic-linked CARES Act for aid and relief.
US crude futures CLc1 were trading around US$41/bbl on Wednesday, at the lower end of what most producers need to be profitable.
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