Baker Hughes to write down $15 billion, cut spending

[Elderberry]

Houston Chronicle by  Sergio Chapa April 13, 2020

Houston oilfield service company Baker Hughes plans to write down the value of its assets by $15 billion and cut capital spending by more than 20 percent from 2019 levels as market conditions worsen for the oil and gas industry.

Baker Hughes expects to take the $15 billion write down in the first quarter. It won't affect the company's cash flow but could result in a net loss when the company reports its first quarter figures on April 22.

A 20 percent cut would mean leave the company with a net capital expenditure budget of $780 million, down from the $976 million spent last year.

More: https://www.houstonchronicle.com/business/energy/article/Baker-Hughes-to-write-down-15-billion-of-assets-15196677.php

[IsailedawayfromFR]

Likely the stupidest move by anybody for GE to buy Baker Hughes, since Mobil bought Montgomery Ward.

It is no wonder why GE's dismal recent performance caused it to be removed from the Dow Industrials.

Jack Welch must be weeping in his grave.