Baker Hughes Predicts Oil Market Growth, Misses on Profit

Tuesday, October 30, 2018

Baker Hughes, General Electric Co's oilfield services arm, fell just short of estimates for profit in the third quarter while forecasting a rise in North American and foreign markets in 2019 that ran contrary to signals from its peers.

The results follow those for bigger rivals Schlumberger and Halliburton Co, which barely beat quarterly profit estimates and warned of slowing North America growth in the ongoing quarter.

U.S. rig count, an early indicator of future output, has risen from a year ago thanks to a ramp up in production by companies seeking to benefit from a surge in global oil prices .

But oil services firms have seen demand for their services soften as U.S. producers cut down on spending, and transportation bottlenecks in the Permian Basin of West Texas and New Mexico pushed the price of regional crude lower.

Baker Hughes said revenue in oilfield services, which accounts for more than half of total sales, rose 12.5 percent to about $3 billion from a year earlier.

Revenue from its oilfield equipment business, which includes deepwater drilling, rose 3 percent to $631 million.

"The offshore market is the strongest it has been in many years and the improving tender and order activity is an encouraging sign as we look out to 2019 and beyond," said Chief Executive Lorenzo Simonelli in a statement.

The company reported adjusted net income of $78 million, or 19 cents per share, in the third quarter ended Sept. 30, compared with an adjusted loss of $7 million, or 2 cents per share, a year earlier.

Excluding one-time items, the company earned 19 cents per share, missing analysts' average estimate of 20 cents per share, according to Refinitiv estimates.

Total revenue rose to $5.67 billion from $5.30 billion.


(Reporting by John Benny; Editing by Sriraj Kalluvila)

Categories: Hardware North America Finance Deepwater Shale Oil & Gas Technology Industry News

Related Stories

SBM Offshore, SLB to Optimize FPSO Performance Using AI

Seatrium Secures ABS Backing for Deepwater FPSO Design

Japan Picks Wood Mackenzie to Assess Trump-Backed Alaska LNG Scheme

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

Yinson, PTSC Get $600M Contract for Vietnam-Bound FSO

China Starts Production at Major Oil Field in Bohai Sea

SBM Offshore’s Jaguar FPSO Enters Drydock in Singapore (Video)

CNOOC Finds Oil and Gas in South China Sea

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

Current News

Shell’s Brazil-Bound FPSO Starts Taking Shape

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com