TechnipFMC to Take $2.4B Impairment Charge

February 11, 2020

Illustration: TechnipFMC Workers -  Source: TechnipFMC
Illustration: TechnipFMC Workers - Source: TechnipFMC

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)



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