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.
Data from a tankless operations pilot project show improvements in cost efficiencies, environmental compliance and more.
U.S. crude oil production is expected to fall by 600,000 bbl/d in 2020 to 11.63 million bbl/d, the EIA said July 7, a smaller decline than the 670,000 bbl/d it forecast previously.
Crude oil stockpiles in the U.S. rise to record high as imports from Saudi Arabia remain elevated.