Oilfield services provider TechnipFMC Plc said Feb. 10 that it expects to take asset impairment charges of $2.4 billion in the fourth quarter as producers cut spending due to lower prices for oil and gas.
TechnipFMC also said it expects 2019 revenue to be near $13.5 billion, the midpoint of its previously estimated range, and forecast goodwill impairment charge in the subsea segment to account for $1.3 billion of the total charges.
Weakening North American shale activity due to lower oil prices has taken a toll on oilfield services provider, with Halliburton Co. disclosing a $2.2 billion charge last month, while Schlumberger Ltd. outlined an aggressive cost-cut plan.
TechnipFMC said its market capitalization had declined significantly, driven in part by geopolitical uncertainty and lower commodity prices.
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