Oilfield services provider TechnipFMC Plc said Feb. 10 that it expects to take asset impairment charges of $2.4 billion in the fourth quarter as producers cut spending due to lower prices for oil and gas.
TechnipFMC also said it expects 2019 revenue to be near $13.5 billion, the midpoint of its previously estimated range, and forecast goodwill impairment charge in the subsea segment to account for $1.3 billion of the total charges.
Weakening North American shale activity due to lower oil prices has taken a toll on oilfield services provider, with Halliburton Co. disclosing a $2.2 billion charge last month, while Schlumberger Ltd. outlined an aggressive cost-cut plan.
TechnipFMC said its market capitalization had declined significantly, driven in part by geopolitical uncertainty and lower commodity prices.
Check out the latest oil and gas drilling activity highlights across the U.S. featured in the September issue of E&P Plus including Occidental Petroleum Bone Spring discoveries plus Marcellus Shale wells completed by Chevron.
Tensions flared in August after Ankara sent its Oruc Reis seismic survey ship into disputed waters, escorted by gunboats, to map out sea territory for possible oil and gas drilling.
Matador said it remains on track to turn all of the remaining Boros wells to sales over the next two weeks as originally planned and previously announced.