Baker Hughes has posted a quarterly loss compared with its profit one year ago. A decline in oil prices has kept a lid on drilling activity for the company, which was bought over by Halliburton last year. Baker Hughes said net loss attributable was $188million - or 43 cents a share - in the second quarter of 2015.
Halliburton has seen a 93% drop in its quarterly profits following the decline in oil prices since last year. The oilfield services provider said it had incurred about $400million in charges as companies have reduced drilling activity. The company’s net profit fell to $53million – six cents a share – in the second quarter of 2015.
The Baker Hughes weekly rig count has shown further promising results from Canada. The rig estimate, which has been in force for more than 50 years, is used to show the count overall worldwide, as well as internationally and in the US and Canada.
Baker Hughes and Halliburton have entered into a timing agreement with the antitrust division of the US DOJ (Department of Justice). It means the period for the DOJ’s review of the takeover will now be completed at the end of November, 90 days after both companies have certified compliance. A deal has also been reached between Baker Hughes and Halliburton to extend the time period for closing the acquisition to no later than December.
The Baker Hughes rig count showed promise as it was revealed the figures have risen slightly overall from the previous month. The rig estimate, which has been in force for more than 50 years, is used to show the count overall worldwide, as well as internationally and in the US and Canada.
The Baker Hughes rig count was up slightly overall from the previous month, despite both the international and US count remaining slightly down. The worldwide rig count for June 2015 was 2,136 – up nine from the 2,127 counted in May and down 1,309 from the 3,445 counted in June 2014. However company ranked the numbers on the international rig count at 1,146 – down 12 from the 1,158 the month previously.
Statoil has awarded Baker Hughes Norway a £119million (NOK1.5billion) contract for its Johan Sverdrup development.
Aker Solutions and Baker Hughes agreed today to co-operate on early-phase studies to help customers improve the overall economics and value of oil and gas field developments. Aker's front-end spectrum unit and Baker Hughes' reservoir development services group will provide customers with development concept studies that address the entire value chain - from reservoir understanding and well design to subsea and topsides facilities, including flow assurance and risk management.
Baker Hughes has posted a quarterly loss after incurring a $772million charge in relation to restructuring and other items. The company, which is in the process of being acquired by Halliburton, also said it would reduce its global workforce by 17%. It brings the total headcount reductions to 10,500 - up from the 7,000 previously announced.
Baker Hughes said it has suspended its quarterly publication of the US onshore well count. The company said it is prioritising its resources to support the ongoing publication of the weekly North America and monthly international rig counts.
Baker Hughes said its rig count for March was down 94 from the same time last year. The company published its international rig count for the third month of 2015. It said rig count was 1,251 down 24 from the 1,275 counted in February.
The number of rigs drilling for oil in the US has declined further. In a weekly update figures show the number has dropped by 11 to 802 – which is the smallest decline since December last year. The previous two weeks showed a decline of 12 and 41 in comparison to the most recent results.
The Halliburton and Baker Hughes merger has been approved by shareholders. The merger was triggered by the decline in oil prices last year. Halliburton investors voted in favour of issuing shares to allow the multi-billion transaction to go forward.
Baker Hughes is set to make job reductions in the US. According to reports, the company will temporarily close a plant in Louisiana with the loss of 60 positions. The move is part of wider staffing changes being made across the company.
Oil giants Baker Hughes and Halliburton are set to cut thousands of jobs. The company made 1,000 redundancies from its eastern hemisphere operations in the fourth quarter last year. The announcement comes after Talisman Sinopec said it would cut up to 300 jobs from its North Sea operations.
US drillers have taken a record number of oil rigs out of service in the past six weeks as OPEC sustains its production, sending prices below $50 a barrel. The oil rig count has fallen by 209 since December 5, the steepest six-week decline since Baker Hughes Inc. (BHI) began tracking the data in July 1987. The count was down 55 this week to 1,366. Horizontal rigs used in US shale formations that account for virtually all of the nation’s oil production growth fell by 48, the biggest single-week drop.
US oil drillers laid down the most rigs in the fourth quarter since 2009. And things are about to get much worse. The rig count fell by 93 in the three months through December 26, and lost another 17 last week, Baker Hughes Inc. (BHI) data show. About 200 more will be idled over the next quarter as US oil explorers make good on their promises to curb spending, according to Moody’s Corp.
US oil drillers, facing the lowest crude prices in five years and rising competition from suppliers abroad, idled the most rigs since 2012. Rigs targeting oil declined by 37 to 1,499 in the week ended December 26, the lowest since April, Baker Hughes Inc said, extending the three-week decline to 76. Those drilling for natural gas increased by two to 340, the Houston-based field services company said. The total rig count, which includes one miscellaneous rig, dropped 35 to 1,840, also an eight-month low.
US oil drillers pulled rigs this week as crude traded below $60 a barrel for the seventh straight day. Rigs targeting oil declined by 10 to a six-month low of 1,536, Baker Hughes said. Those seeking out natural gas slipped by eight to 338, the Houston-based field services company’s website. The total count fell by 18 to 1,875, the lowest level since July.
Halliburton will cut 1,000 jobs in its eastern hemisphere offices as a result of falling oil prices. The oil services company, which recently announced a $34.6billion merger with Baker Hughes, said the losses will be made in Europe, Africa, Asia, Australia and the Middle East. A spokesman for Halliburton said the decision was not an easy one, but “necessary”.
Halliburton has appointed its chief financial officer (CFO) as chief integration officer to lead its merger with Baker Hughes. Mark McCollum will serve as head of the joint integration team the two companies are assembling. It comes after they revealed plans to merge last month in a $34.6billion deal.
Almost in line with falling global oil prices share value of oilfield service companies have slumped by around 25% over the past four months. These are the same companies that have benefited greatly from the US fracking boom that transformed the standing of the US as an oil and gas producer; its position as number one oil consumer has never been at risk. But the halcyon days of unfettered profits for US frackers and service companies look to be over.
Halliburton is in talks to buy Baker Hughes Inc in a deal that would combine two of the largest and oldest names in the energy business as plunging oil prices send the industry into a downturn. By eliminating a competitor, Halliburton, already the world’s second-biggest provider of oilfield services, would gain market clout that would help insulate it from a sustained market decline. A combination of Halliburton with No. 3 Baker Hughes would be a little more than half the size of larger rival Schlumberger Ltd.