Baker Hughes Inc. (NYSE: BHI) said on April 27 that U.S. rig count will likely stabilize in the second half of the year after falling in the current quarter.
The oilfield services provider, which also reported a bigger quarterly loss, said it expected the North American rig count to fall 30% in the second quarter from the prior quarter.
The results from Baker Hughes, which is to be bought by bigger rival Halliburton Co. (NYSE: HAL), come three days ahead of a deadline set by the companies to get regulatory approval for the deal.
However, Baker Hughes said it did not expect drilling activity to increase meaningfully this year, even if the rig count held steady.
Globally, rig count is expected to drop steadily through the end of the year due to limited new projects in the pipeline, Baker Hughes said on April 27.
Net loss attributable to Baker Hughes widened to $981 million, or $2.22 per share, in the first quarter ended March 31 from $589 million, or $1.35 per share, a year earlier.
Revenue fell 41.9% to $2.67 billion.
"During the quarter, the industry faced another precipitous decline in activity, exceeding even the most pessimistic predictions, as E&P companies further cut spending in an effort to protect cash flows," said Martin Craighead, Baker Hughes' CEO, in a statement.
RELATED: DOJ Antitrust Suit Hands Halliburton, Baker Hughes Deal Grim Prognosis
Recommended Reading
Oceaneering Won $200MM in Manufactured Products Contracts in Q4 2023
2024-02-05 - The revenues from Oceaneering International’s manufactured products contracts range in value from less than $10 million to greater than $100 million.
E&P Highlights: Feb. 5, 2024
2024-02-05 - Here’s a roundup of the latest E&P headlines, including an update on Enauta’s Atlanta Phase 1 project.
CNOOC’s Suizhong 36-1/Luda 5-2 Starts Production Offshore China
2024-02-05 - CNOOC plans 118 development wells in the shallow water project in the Bohai Sea — the largest secondary development and adjustment project offshore China.
TotalEnergies Starts Production at Akpo West Offshore Nigeria
2024-02-07 - Subsea tieback expected to add 14,000 bbl/d of condensate by mid-year, and up to 4 MMcm/d of gas by 2028.
US Drillers Add Oil, Gas Rigs for Third Time in Four Weeks
2024-02-09 - Despite this week's rig increase, Baker Hughes said the total count was still down 138 rigs, or 18%, below this time last year.