Oilfield services firm Baker Hughes, currently mired in a highly contested merger with larger rival Halliburton, on Wednesday reported a $981 million net loss for the second quarter.
The loss compared to a $589 million loss in the year-earlier quarter. Among the quarter’s expenses was a more-than $110 million related to the Halliburton purchase.
Revenue fell 41.8%, to $2.67 billion, from $4.59 billion one year ago.
In North America, Baker Hughes’ largest market, first-quarter operating revenues plunged more than 59%, to $819 million, from more than $2 billion one year ago.
Baker Hughes’ world could be changing considerably if Halliburton kills the deal to purchase Baker Hughes. First, Baker Hughes will receive approximately $3.5 billion as the break fee. These funds will certainly help offset the tough times which Baker Hughes has been experiencing as the result of the price decline.
Baker Hughes was probably handcuffed by the Halliburton deal. If the deal goes down in flames, Baker Hughes will be moving quickly to regain its momentum as a freestanding company.
I’m sure employees at Baker Hughes will be experiencing a sigh of relief if the deal is not completed. We keep monitoring this situation because it impacts so many companies throughout the world, especially in the shale plays where Shale Directories operates.