Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Baker Hughes slumps to pre-tax loss of £13bn in first half

© Baker HughesBaker Hughes
Baker Hughes wins Pluto LNG deal

US energy service firm Baker Hughes slumped to pre-tax losses of £13 billion ($16.5bn) in the first half of 2020, highlighting the severe impact of the Covid-19 pandemic and crude price drop.

Baker Hughes recorded pre-tax profits of £175 million in the corresponding period in 2019, but was weighed down by a “goodwill impairment” of £11.6bn in H1 2020.

First-half revenues dropped 12.5% year-on-year to £8bn, with the company facing strong “headwinds” as it attempted to “navigate” through the lockdown and associated price storm.

Orders for the second quarter totalled £3.85bn, down 25% on the same period in 2019.

Chief executive Lorenzo Simonelli said the company was “executing” its plans and was on track to “structurally right-size” and realise £550m of annual cost savings by year-end.

In its first quarter results announcement, Baker Hughes said it would reduce its headcount, but provided no further details on Wednesday.

Mr Simonelli warned that while economic activity “likely troughed” in the second quarter, visibility remained “extremely limited”.

He said: “The risk of a second wave of virus cases, the reinstitution of select lockdowns, and the risk of lingering high unemployment creates an uncertain economic environment that likely persists through the rest of 2020.”

Baker Hughes had some success adapting to remote working during the first half.

It delivered 72% of its global drilling services jobs remotely in the second quarter, up from 60% Q1.

The oilfield service team achieved new milestones, remotely drilling two miles in a 24-hour period and drilling 11,253 feet in a 24-hour period with North American customers.

Baker Hughes’ oilfield equipment branch also expanded its remote capabilities, using its engageSubsea product to install and test equipment.

Recommended for you

More from Energy Voice

Latest Posts