Houston, April 23 - Neftegaz.RU. Baker Hughes sank deep into the red during the first quarter as the oil price rout and Covid-19 pandemic took their toll. The company cut the value of assets by more than $16 billion, resulting in a $10.2 billion 1st quarter loss compared with a $20.9 million profit a year earlier.
In its 1Q 2020 report, Baker Hughes said that its orders in the quarter were $5.5 billion, down 20% sequentially and down 3% year-over-year. Its revenues were $5.4 billion for the quarter, down 15% sequentially and down 3% year-over-year
Baker Hughes’ GAAP operating loss for the 1st quarter of 2020 was $16.06 billion, compared to a profit of $176 million in the same period last year. The company’s net loss in 1Q 2020 amounted to $10.2 billion compared to a profit of $32 million in 1Q 2019.
As previously reported, the company’s 1Q 2020 results include goodwill, inventory, restructuring, and other impairment charges of over $15 billion.
Lorenzo Simonelli, Baker Hughes CEO, said: “During the 1st quarter, the macroenvironment changed rapidly. The sudden demand shock from COVID-19 combined with rising global oil supply drove a 67% decline in oil prices during the 1st quarter. Looking forward, the outlook for oil & gas demand and supply appears equally uncertain, and it will largely be driven by the pace of economic recovery from the pandemic and the supply response that ultimately materializes."
Simonelli added: “To navigate this challenging environment, we have taken decisive actions in an effort to cut costs, accelerate structural changes, and deploy technology and optimize processes that can lower costs for our customers. This includes reducing capital expenditures by more than 20% versus 2019, executing a restructuring plan to right-size our operations for anticipated activity levels and market conditions, as well as continuing to deliver on our portfolio evolution strategy”.
As previously reported, the company’s 1Q 2020 results include goodwill, inventory, restructuring, and other impairment charges of over $15 billion.
Simonelli added: “To navigate this challenging environment, we have taken decisive actions in an effort to cut costs, accelerate structural changes, and deploy technology and optimize processes that can lower costs for our customers. This includes reducing capital expenditures by more than 20% versus 2019, executing a restructuring plan to right-size our operations for anticipated activity levels and market conditions, as well as continuing to deliver on our portfolio evolution strategy”.
