Producers have been drilling fewer wells following a collapse in crude oil prices this year as demand for oil products has sunk. The downturn has hit rivals Schlumberger NV SLB.N and Halliburton Co HAL.N as well, with both reporting quarterly losses.

Global oil prices were trading around $42.46 a barrel LCOc1 on Wednesday, down about 1.62%, as rising coronavirus cases in places like Europe and the United States threaten to stall any recovery in demand.

“After significant turmoil during the first half of the year, oil markets have somewhat stabilized. However, demand recovery is beginning to level off and significant excess capacity remains, which could create volatility in the future,” said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.

Baker Hughes in July vowed to further cut costs to prepare for a longer period of oil price volatility.

The company was on track to “right-sizing its business” and to achieve $700 million in cost savings by the year-end, Simonelli said on Wednesday.

Revenue from Baker Hughes’ oilfield services unit, which accounts for nearly 46% of its total sales, fell 31% to $2.31 billion in the third quarter.

Orders in Baker Hughes’ oilfield equipment business were down 58% year-over-year for the third quarter.

Shares were up about 2.13% to $13.92 in premarket trading.

Net loss attributable to the company was $170 million, or 25 cents per share, in the three months ended Sept. 30, compared with a profit of $57 million, or 11 cents per share, a year earlier.

On an adjusted basis, the company earned 4 cents per share, in line with Wall Street expectations, according to data from Refinitiv.

Revenue fell 14% to $5.05 billion, but beat analysts’ estimate of $4.78 billion.