Baker Hughes Profit Beats on Oilfield Services Growth
File Image: An offshore Gulf of Mexico energy operation and OSV (CREDIT: BSM)
Baker Hughes, the oilfield services company controlled by General Electric, posted a quarterly profit that beat Wall Street estimates on Friday as improving oil prices prompted companies to ramp up production.
The cost of a barrel of U.S. crude rose 7.5 percent in the first quarter, energizing oil producers to step up investments after holding back over the past few years to counter a steep drop in prices.
Baker Hughes said oilfield services revenue, which accounted for half of overall sales, rose 10.1 percent to $2.64 billion in the quarter, with the company winning major contracts in the Permian Basin and the Gulf of Mexico.
Net income attributable to the company was $70 million, or 17 cents per share, in the three months ended March 31.
The company, formed following the merger of GE's oil and gas equipment and services business with Baker Hughes in July 2017, did not provide earnings for the combined entity in the same quarter a year ago.
Excluding items, Baker Hughes earned 9 cents per share, beating analysts' estimate by 3 cents, according to Thomson Reuters I/B/E/S.
Revenue rose to $5.40 billion from $5.32 billion on a combined basis a year earlier.
Orders rose 8.7 percent in the latest quarter.
Reporting by Yashaswini Swamynathan