(Reuters) -Baker Hughes Co posted a quarterly loss on Wednesday, compared with a profit a year ago, hit by $230 million in restructuring and impairment charges relating to the oilfield services provider’s latest reorganization.
The company during the recent quarter said it would simplify its organizational structure into two business units from four, one focused on oilfield equipment and services and another dedicated to industrial energy and technology, which includes its Turbomachinery and Process Solutions (TPS) business.
Its oilfield business segments accounted for about 63% of its revenue during the quarter through September.
The loss comes even as oil and gas prices have surged following Russia’s invasion of Ukraine in February, which has squeezed energy supplies and pushed prices to their highest levels in years.
averaged $98.96 a barrel during the third quarter, up about 36% from a year ago.
Net loss attributable to the company was $17 million, or 2 cents per share, for the three months ended Sept. 30, compared with a profit of $8 million, or 1 cent per share, a year earlier.
“The macro outlook has grown increasingly uncertain as the global economy is dealing with strong inflationary pressures, a rising interest rate environment, and sizeable fluctuations in global currencies” said Lorenzo Simonelli, chief executive of Baker Hughes, in a press release on Wednesday.
Revenue from its Oilfield Equipment unit dipped 7% year-over-year, driven in part by lower volumes in its Subsea Production Systems business, while its TPS revenue declined 8% over that period amid lower equipment and project volumes.
On an adjusted basis, the company posted a profit of $264 million, up from $141 million a year earlier. That equates to earnings of 26 cents per share, which topped analysts’ forecasts of around 24 cents per share, according to Refinitiv data.
Shares of Baker Hughes were up 2.23% at $24.72 in premarket trading. They topped $38 earlier this year, but have since softened and are roughly flat in the year to date.
