US oilfield services firm Baker Hughes yesterday said it will make more cost cuts than anticipated this year as it reported a smaller-than-expected quarterly loss.
Revenue at the Houston-based company fell 38 per cent to $2.35bn (£1.92bn) in the quarter ended 30 September. A more than 30 per cent drop in total costs and expenses brought the adjusted loss to 15 cents per share, lower than the 44 cents analysts had forecast.
Baker Hughes cut its operating losses by 44 per cent, or $249m, through “decisive actions” to “right-size its operating structure”. The group has now raised its target to cut costs over the full year to $650m, up from $500m.
Chairman and chief executive Martin Craighead said: “Our third quarter results demonstrate the progress we have made on our commitment to improve financial performance by reducing operational costs, optimising our capital structure, and strengthening our full-service model while building broader sales channels for our products and technology.”
Craighead added the group expects oilfield activity in North America to “modestly increase” as its customers “slowly [begin] to ramp up activity in what remains a tough pricing environment”.
Internationally, we are forecasting activity declines and pricing pressure to continue, with minimal year-end, seasonal product sales unlikely to offset those declines.
In May, a $28bn merger between Halliburton and Baker Hughes broke down. It would have represented the largest ever oilfield services acquisition.