Baker Hughes said it expects the US rig count will begin to stabilise in the second half of the year, while the rig count globally will drop steadily through the year.
The company made the assessment as it reported a large first quarter loss with its North American revenue falling 59% in the first quarter.
It expects the current quarter rig count in North America to fall 30% from the previous quarter while the count globally will be limited by fewer newer projects.
Chief executive Martin Craighead said:”During the quarter, the industry faced another precipitous decline in activity, exceeding even the most pessimistic predictions, as E&P companies further cut spending in an effort to protect cash flows.”
Baker’s shares were down nearly 4% in pre-market trading.
The company is set to be bought by Halliburton, with Baker reiterating their merger agreement would not terminate automatically if regulatory reviews extended beyond the deadline of April 30th.