Oilfield services provider TechnipFMC said on Monday 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 NV outlined an aggressive cost-cut plan.
TechnipFMC said its market capitalization had declined significantly, driven in part by geopolitical uncertainty and lower commodity prices.
(Reporting by Arundhati Sarkar in Bengaluru)