Baker Hughes Inc. released its fourth quarter and yearly numbers Thursday.
The company posted fourth-quarter revenue of $3.4 billion and $15.7 billion for the year, an $8.8 billion drop from full-year revenue in 2014. Company executives said the oilfield services business was hit hard by falling oil prices, which have slipped by more than 60 percent since 2014.
"Looking ahead, we are forecasting rig activity worldwide to continue to decline throughout 2016," Baker Hughes Chairman and CEO Martin Craighead said. "At current commodity prices, the global rig count could decline as much as 30 percent in 2016, as our customers' challenges of maximizing production, lowering their overall costs, and protecting cash flows are now more acute. As a result of these challenging market conditions, our role in the industry is more relevant today than it has ever been before. Our products and services put us in an excellent position to help our customers achieve their business objectives and to capitalize on opportunities to continue to convert our capabilities into earnings. While targeting these opportunities, we remain focused on generating positive cash flow by proactively managing our cost structure, reducing our working capital, and maximizing return on invested capital."
In accordance with the sagging market and revenue, Baker Hughes also spent 46 percent less in 2015, posting overall capital expenditures of $1 billion, down $826 million from 2014.
Baker Hughes is a publicly traded company based in Houston that provides services to oil field operators with a staff of 46,000 employees working in more than 80 countries.