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

Related Stories

ABS Approves Hanwha Ocean’s FPSO Design

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Kuwaiti Oil and Gas Firm Exploring More Opportunities in Indonesia's Natuna Sea

Velesto’s Drilling Rigs Up for Automatization Overhaul Under New Tech Alliance

Beam’s AI-Driven AUV to Hit Offshore Wind Market in 2025

CRC Evans Secures Work at Qatar’s Largest Offshore Oil Field

Floating Wind and the Taming of Subsea Spaghetti

First Oil Starts Flowing at CNOOC’s South China Sea Field

Korea's Hanhwa Sets Out Plan for Full Takeover of Singapore's Dyna-Mac

Indonesia Green Lights Eni Gas Projects

Current News

Offshore Drilling 2025: 3 Things to Watch During a Year of Market Corrections

Subsea Redesign Underway for Floating Offshore Wind

The Five Trends Driving Offshore Oil & Gas in 2025

China’s CNOOC Brings Bohai Sea Oil Field On Stream

Offshore Service Vessels: What’s in Store in 2025

ABS Approves Hanwha Ocean’s FPSO Design

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Floating LNG Conversion Job Slips Out of Seatrium’s Hands

Transocean’s Drillship to Stay in India Under New $111M Deal

INEOS Picks Up CNOOC’s US Assets in $2B Deal

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