February 10, 2020 / 10:37 PM / 16 days ago

TechnipFMC expects charges of $2.4 billion in fourth quarter

FILE PHOTO - The logo of energy engineering group TechnipFMC is seen on top of the company's building in Courbevoie at the financial and business district of La Defense near Paris, France, May 14, 2018. REUTERS/Charles Platiau

(Reuters) - 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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