Baker Hughes Inc. (NYSE: BHI) reported third-quarter 2015 results before markets opened Wednesday. The oil and gas services company posted an adjusted diluted net loss of $0.05 per share on revenues of $3.9 billion. In the same period a year ago, the company reported EPS of $1.02 on revenues of $6.25 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for a net loss per share of $0.14 and $3.79 billion in revenues.

On a GAAP basis, the firm posted a net loss of $159 million ($0.36 per share) compared with net income of $369 million ($0.86 per share) in the third quarter of 2014. The adjusted net loss excludes a total of $191 million comprising pretax charges for restructuring ($98 million) and merger-related charges ($93 million).

Capital spending in the third quarter totaled $178 million, down 31% ($80 million) sequentially and down 58% ($247 million) year over year.

Free cash flow in the quarter totaled $348 million, including a restructuring charge of $56 million.

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Martin Craighead, the company’s chairman and CEO, said:

In the third quarter, we delivered increased operating profit sequentially, despite deteriorating market conditions and lower revenue. Internationally, despite a 4% decrease in revenue we expanded margins across all of our segments as a result of continued cost reductions. In North America, margins declined further driven by ongoing weakness in the U.S. onshore market, and unfavorable mix in the Gulf of Mexico. … Consistent with our earlier forecast, we expect further activity reductions and pricing pressures to continue across the globe for well construction for the remainder of the year, as our customers adapt their spending to the lower oil price environment. … Regarding the pending merger [with Halliburton], I continue to be pleased with the efforts of the teams working on regulatory matters and developing plans for a successful integration. The recently announced plan to divest certain businesses is another important step in the process to complete the transaction.

The company did not provide guidance, but the consensus analysts’ estimates for the fourth quarter call for a net loss per share of $0.13 on revenues of $3.73 billion. For the full year, analysts are looking for a net loss per share of $0.49 on revenues of $16.05 billion.

The stock was up 1.4% Wednesday morning to $53.91, in a 52-week range of $44.11 to $70.45. The consensus price target is $68.99. When the merger with Halliburton Co. (NYSE: HAL) was announced in November of 2014, the cash-and-stock deal was valued at $78.62 per Baker Hughes share.

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