GE unit Baker Hughes (BHGE) notched up a fourfold rise in profits in the fourth quarter on higher revenue fuelled by increased demand for its core oilfield services business.

The company reported a quarterly net profit of $131 million, up from $31 million a year earlier, as turnover increased 8% over the year to $6.3 billion, while turning around an operating loss of -$111 million a year ago to a profit of $382 million in the latest quarter.

The value of its orders was up 21% year-on-year to $6.9 billion - its largest out of any quarter in the past three years - as sales were swelled by drilling, completions and artificial lift awards in the Middle East and Latin America, as well as delivery of drilling systems in its main North American patch.

“The market environment changed significantly as we progressed through the year. Through these changes, we stayed focused on our priorities of gaining market share, running the company better to improve margin rates and improving cash generation,” chief executive Lorenzo Simonelli said.

BHGE’s key oilfield services division recorded a 10% year-on-year boost in revenue to $3 billion, while oilfield equipment gained 12% more in takings at $729 million.

“The market dynamics in the fourth quarter demonstrated the volatility in our industry. The recent decline in crude prices will have an impact on the more transactional markets of the US, Canada and Latin America in the first half of 2019,” Simonelli said.

“We expect other international markets as well as offshore activity to remain relatively stable. We are seeing a positive change in the LNG market, with likely project sanctioning accelerating faster than we previously anticipated.”

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Profits leap for Baker Hughes