Baker Hughes (NYSE:BKR) says it expects to record a ~$15B non-cash goodwill impairment charge in Q1 and plans to cut 2020 net capital spending by more than 20% from 2019 levels.
The company cites the sharp decline in market cap during Q1, driven by the collapse of oil prices caused by surplus production and supply as well as the decrease in demand caused by the COVID-19 pandemic.
Baker Hughes also approves a plan that will result in restructuring, impairment and other charges totaling ~$1.8B, of which ~$1.5B will be recorded in Q1.
The company says it continues to maintain "solid" financial strength and liquidity, with cash holdings totaling $3B at year-end 2019, excluding assets held on behalf of GE, and a $3B revolving credit facility.
