Baker Hughes expects less drilling as it reports $159-million loss

HOUSTON – Baker Hughes expects activity in North America to fall this quarter, the company said as it reported a loss of $159 million, or 36 cents per share, for the quarter ended Sept. 30.

The service company reported revenue of $3.8 billion for the quarter, a 39% fall from the like period in 2014 and a 5% drop from the preceding quarter.

According to Martin Craighead, chairman and CEO of Baker Hughes, the company is “seeing stronger interest” in its production offerings "that optimize production from existing wells and increase ultimate recovery.”

The company is, however, expecting the downturn in oil prices to continue to take its toll.

“Consistent with our earlier forecast, we expect further activity reductions and pricing pressures to continue across the globe for well construction for the remainder of the year, as our customers adapt their spending to the lower oil price environment,” Craighead said in a statement. "In the fourth quarter, we expect activity in North America to decline as our customers adjust activity for lower commodity prices, exacerbated by an extended holiday impact. Internationally, seasonal year-end product sales are not expected to offset the anticipated decline in activity."