• 4 minutes U.S. Shale Output may Start Dropping Next Year
  • 8 minutes Read: OPEC WILL KILL US SHALE
  • 12 minutes Tidal Power Closer to Commercialisation
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 2 hours Why U.S. Growers Are Betting The Farm On Soybeans Amid China Trade War
  • 2 hours Trump to Make Allies Pay More to Host US Bases
  • 4 hours BATTLE ROYAL: Law of "Supply and Demand". vs. OPEC/Saudi Oil Cartel
  • 2 hours US-backed coup in Venezuela not so smooth
  • 13 hours Solar to Become World's Largest Power Source by 2050
  • 1 day Sounds Familiar: Netanyahu Tells Arab Citizens They’re Not Real Israelis
  • 4 hours Biomass, Ethanol No Longer Green
  • 21 hours THE DEATH OF FOSSIL FUEL MARKETS
  • 1 day Can OPEC CUT PRODUCTION FOREVER?
  • 1 day Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 1 day this is why Climate Friendly Agendas Tread Water
  • 19 hours Exxon Aims For $15-a-Barrel Costs In Giant Permian Operation

Breaking News:

Tesla Wants To Enter India Soon

Pakistan Aims To Become A Natural Gas Hotspot

Pakistan Aims To Become A Natural Gas Hotspot

Positioned perfectly in the Asian…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Baker Hughes Cut 3,000 Jobs in Q2, Plunges Deeper Into Red

Shale Gas Well

Oilfield services group Baker Hughes said on Thursday that it had cut 3,000 jobs in the second quarter in a bid to increase annualized savings as its loss widened to US$911 million, from US$188 million for the second quarter last year.

The adjusted net loss was US$0.90 per share, compared to expectations for a loss of US$0.62 per share by Thomson Reuters I/B/E/S.

Revenues dropped by 39 percent annually and by 10 percent sequentially, to US$2.4 billion, on the back of steep decline in activities and increased pricing pressure, mostly in the Eastern Hemisphere.

Baker Hughes’s corporate costs dropped to US$29 million in the second quarter, from US$42 million in the same period last year.

“The year-over-year reduction in corporate costs is mainly due to workforce reductions and lower spending,” the group said in its second-quarter statement.

Prior to the second-quarter layoffs, Baker Hughes had dismissed 2,000 employees in the first quarter and another 18,000 in 2015.

In April to June, Baker Hughes implemented cost cuts which put it on track to reach its target to achieve US$500 million in annualized savings by the end of this year, chairman and chief executive Martin Craighead said.

In early May this year, Baker Hughes and Halliburton announced the termination of their merger agreement, as the companies said they were unable to overcome the objections of federal antitrust regulators.

Looking ahead, Baker Hughes does not expect its North American business to improve in the second half of 2016, since its customers want to see a more sustained improvement in oil prices before deciding to raise their spending efforts. The group sees activity worldwide to continue on the downward trend in most countries, and steeper declines are projected in markets where lifting costs are higher. Therefore, Baker Hughes expects that the pricing environment will stay challenging.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News