Baker Hughes Pursues $1.8 Billion Restructuring Plan Amid Oil-Price Declines
Oilfield-services company expects to book $15 billion in noncash goodwill impairment
Baker Hughes also plans to cut 2020 capital expenditures by more than 20%.
Baker Hughes also plans to cut 2020 capital expenditures by more than 20%.
PHOTO: CHRIS HELGREN/REUTERS
By Dave Sebastian
Updated April 13, 2020 9:47 am ET
Baker Hughes Co. said it is pursuing a restructuring plan that will result in about $1.8 billion in charges and expects to book a roughly $15 billion goodwill impairment charge for the first quarter as the company faces the coronavirus pandemic and declines in oil and gas prices.
The oil-field services company said Monday it will book $1.5 billion of those charges for the first quarter. Future cash expenditures related to those charges are projected to be about $500 million with an expected payback within a year, it said.