(Reuters) – Baker Hughes Co reported lower-than-expected revenue on Wednesday as demand for its oilfield equipment and services took a hit from a more than 80% plunge in oil prices this year.

As oil producers scramble to cut costs and spending, drilling operations have come to a standstill, drying up the business for equipment and service providers like Baker Hughes.

The company had last week said it would take about $16 billion in charges as falling customer demand led it to reduce its long-term prospects for its oilfield services and equipment unit.

Revenue of $5.43 billion for the quarter was down 3% from a year earlier and below analysts’ average estimate of $5.63 billion, according to Refinitv Eikon data.

Net loss attributable to Baker Hughes stood at $10.21 billion compared with a profit of $32 million a year earlier.

Rivals Schlumberger NV and Halliburton Co also took massive charges to earnings in the quarter from writing down assets amid the double whammy of Covid-19 pandemic and slump in oil demand.

On an adjusted basis, Baker Hughes reported profit of 11 cents per share, in line with market expectations.

Reporting by Shradha Singh in Bengaluru; Editing by Arun Koyyur

Source Article