Baker Hughes Inc. (NYSE: BHI) reported a quarterly net loss, hurt by a $1.25 billion impairment charge.
Net loss attributable to Baker Hughes, which is being acquired by larger rival Halliburton Co. (NYSE: HAL), was $1.03 billion, or $2.35 per share, in the three months ended Dec. 31. This is compared with a profit of $663 million, or $1.52 per share, a year earlier.
Excluding a $1.25 billion impairment charge in the quarter, loss was 21 cents per share, much bigger than the average analyst estimate of 10 cents per share, according to Thomson Reuters.
Revenue nearly halved to $3.39 billion, missing Wall Street expectations of $3.47 billion.
Baker Hughes shares closed at $40.83 on Jan. 27.
The stock is down 31% since the deal with Halliburton was announced on Nov. 17, 2014. Halliburton's shares have lost 47% during the same period.
Baker Hughes also said it expected global rig count to decline by as much as 30% in 2016, as the slump in oil prices shows no signs of abating.
A more than 70% slide in global crude prices since June 2014 has forced oil producers to lay down rigs and scale back spending.
The worldwide rig count more than halved in 2015, meaning 2016 will be the second straight year of reduced drilling activity.
Chief Executive Martin Craighead said "customers' challenges of maximizing production, lowering their overall costs, and protecting cash flows were now more acute."
Baker Hughes publishes the closely-watch North American rig count every week, and the international rig count on a monthly basis.
Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell Plc, among other firms in Mexico’s Association of Hydrocarbon Companies (Amexhi), say they have met output targets and investment pledges worth hundreds of millions of dollars in the initial phases of their contracts.
Longer laterals and wider spacing are among the trends being seen, expert says.
Florida Republican Senator Marco Rubio has placed a hold on the Senate confirmation of President Donald Trump's pick to become the deputy secretary of the Interior Department, Katharine MacGregor, over concerns about the agency's plans to expand offshore drilling, his office said on Dec. 4.