Baker Hughes Posts Bigger Quarterly Loss on Russia-related Charges

(REUTERS) Oilfield services provider Baker Hughes on Wednesday reported a bigger second-quarter loss, hit by a $365 million charge from suspension of its Russian operations and supply chain inflation, dampening the benefits of higher oil prices.

The company’s shares fell about 4.5% to $26.95 in premarket trading.

“Our second-quarter results were mixed as each product company navigated a different set of challenges ranging from component shortages and supply chain inflation to the suspension of our Russian operations” Lorenzo Simonelli, chief executive officer of Baker Hughes, said in a statement.

Oilfield services companies are grappling with higher prices for drilling materials, fracking sand, labor shortage and other inflationary pressures.

Baker Hughes posted a net loss of $839 million, or 84 cents per share, in the three months ended June 30, compared to a loss of $68 million, or 8 cents per share, a year ago.

Its adjusted net income rose to $114 million, or 11 cents per share, from $83 million, or 10 cents per share.

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