Oilfield services provider Baker Hughes Inc reported a bigger quarterly loss due to impairment charges.
Net loss attributable to Baker Hughes widened to $429 million, or $1 per share, in the third quarter ended Sept. 30 from $159 million, or 36 cents per share, a year earlier.
The company said it recorded after-tax charges of $365 million related to asset impairments, restructuring, litigation settlements and goodwill impairment.
Revenue fell 37.8 percent to $2.35 billion.
In May, Baker Hughes and Halliburton Co scrapped their long-stalled deal – valued at about $35 billion when it was announced in 2014 – due to opposition from U.S. and European antitrust regulators.
Baker Hughes – whose planned merger with Halliburton fell through in May due to opposition from regulators – warned of continued weakness in international markets.
Oil would have to trade at about $55 for drilling activity to pick up in the North Sea, while drilling in West Africa would need a higher price of $65, Chief Executive Martin Craighead said on a post-earnings call.
Halliburton said last week that oil prices would have to stabilize at above $50 per barrel for producers to meaningfully increase oilfield activity.
Schlumberger Ltd (SLB.N), the world’s No.1 oilfield services provider, said on Friday there were early signs of recovery in industry activity in most parts of the world.
Baker Hughes’ total costs and expenses fell 31.2 percent in the third quarter, helping the company report an adjusted loss of 15 cents per share. That was much smaller than the 44 cents analysts were expecting, according to Thomson Reuters I/B/E/S.
The company on Tuesday raised its target to cut costs for the year to $650 million from $500 million.
Baker Hughes said in a filing it had laid off 1,400 employees in the third quarter, taking the total job cuts this year to 6,400. The company had slashed 18,000 jobs last year. (bit.ly/2e7HG44)
The company had about 34,000 employees as of Sept. 30.