Baker Hughes ( NASDAQ: BKR ) -10.1% in early Wednesday trading after missing expectations for Q2 earnings and revenues , as benefits from higher oil prices were outweighed by component shortages, supply chain inflation and the suspension of its Russian operations.
Baker Hughes ( BKR ) posted a Q2 net loss of $839M, including a $365M charge from the suspension of Russian operations, compared to a $68M loss in the year-earlier quarter.
Q2 adjusted earnings rose to $0.11/share from $0.10 but were far short of analyst estimates, revenues rose 4% Q/Q but fell 2% Y/Y to $5.05B, and free cash flow plunged 62% to $147M from $385M a year ago.
CEO Lorenzo Simonelli said he expects oil demand will deteriorate in the next 12-18 months, as interest rates rise and inflation hits consumer purchasing power, but commodity prices could remain elevated because of years of energy underinvestment and reduced supply from Russia.
Rival oilfield services company Halliburton yesterday disclosed better than expected Q2 earnings and revenues .
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Baker Hughes plunges as shortages, inflation add to losses