Baker Hughes posts profit rise

Pleased: CEO Martin Craighead

A $62 million litigation settlement cost and a foreign exchange loss in Venezuela ultimately failed to derail Baker Hughes in the second quarter as the services giant piled on profit.

A large increase in revenues was enough to deflect from rising costs as net profit for the three months to the end of June grew to $359 million, up from $245 million a year earlier.

Revenues rose from $5.49 billion to $5.94 billion, while total costs and expenses were up from $5.05 billion to $5.3 billion.

The $62 million expenses related to labour claims, while there were also $12 million of before- and after-tax costs associated with a foreign exchange loss related to the currency devaluation in Venezuela.

Chief executive Martin Craighead put the rise in revenues down in part to the implementation of new drilling technology, particularly in the US, where results more than offset a seasonal decline in Canada.

"Around the world, the fundamentals of our business continue to strengthen,” he continued.

“We anticipate increased activity for the remainder of the year in the form of higher international rig counts, and increased North American well counts.

“As a result, we project strong earnings growth as we fulfill the industry's growing need for innovative new technologies."

Newsletter signup


Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?