Baker Hughes Q3 Profit, Revenue Climb - Update

(RTTNews) - Oilfield services provider Baker Hughes Inc. (BHI) Thursday said profit for the third quarter increased from the prior year, supported by growth in revenues especially from North America. However, revenues were shy of estimates. The stock fell 4 percent in pre-market activity.

Net income advanced to $375 million from $341 million in the prior year. Earnings per share rose to $0.86 from $0.77.

The latest results included $0.03 per share charge relating to the impairment of a technology investment and costs of $0.13 per share, associated with a restructuring of operations in North Africa, resulting primarily from recent disruptions in Libya.

Adjusted earnings per share totaled $1.02, while it amounted to $0.81 last year.

On average, 27 analysts polled by Thomson Reuters expected earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue increased to $6.250 billion from $5.787 billion in the prior year. Analysts expected revenues of $6.29 billion.

In North America, revenue increased to $3.155 billion from $2.854 billion, driven by a significant increase in service intensity in pressure pumping product line and the seasonal rebound of the Canadian business.

Europe/Africa/Russia Caspian reported revenues of $1.114 billion, up from the prior year's $1.036 billion.

In Middle East/Asia Pacific, quarterly revenue advanced to $1.077 billion from $1.012 billion.

Martin Craighead, Baker Hughes Chairman and CEO, said these results were achieved despite several geopolitical events in the Eastern Hemisphere and a sharp reduction of activity in the Gulf of Mexico which caused margins to fall short of expectations.

"Our outlook for the near term remains positive based on increasingly favorable market conditions in our North American business and recent actions to increase profitability internationally," he said.

For the fourth quarter, the North American segment is expected to deliver increased revenue and margins as activity levels return to normal in the Gulf of Mexico and profitability continues to improve in the pressure pumping business.

BHI, which closed up 2.2 percent at $53.63 on Wednesday, is down 4 percent in pre-market activity.