Baker Hughes just reported a massive miss on earnings

Baker Hughes reported a wider-than-expected earnings loss for the first quarter ahead of Wednesday’s market open.

The oilfields-services company posted an adjusted loss per share of $1.58, wider than the estimated loss of $0.33 according to Bloomberg.

Its revenues were also light, down 42% year-over-year to $2.67 billion versus $2.85 billion forecast.

Baker Hughes, which provides the weekly tally of US oil and gas rigs, said it expects the US oil rig count to start to stabilise in the second half of this year. However, this doesn’t mean that drilling activity will meaningfully increase.

Internationally, Baker Hughes expects the rig count to continue falling through the year-end.

Over the past year, the global rig count has been cut nearly in half.

“During the quarter, the industry faced another precipitous decline in activity, exceeding even the most pessimistic predictions, as E&P companies further cut spending in an effort to protect cash flows,” CEO Martin Craighead said in the earnings statement.

Baker Hughes shares fell 2.7% in pre-market trading.

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