Baker Hughes tightens net loss in first quarter
Oilfield services provider Baker Hughes narrowed its net loss for the first quarter of 2017 compared to the prior-year period while its revenues declined by 15 percent.
Baker Hughes on Tuesday posted a net loss for the first quarter of 2017 of $129 million, compared to $417 million in the fourth quarter of 2016, and $981 million in the first quarter of 2016.
Revenues for the first quarter 2017 were $2.3 billion. Compared to the same quarter last year and revenues of $2.7 billion, Baker Hughes saw a 15% decline in this year’s first quarter. Sequentially, the company’s revenues dropped by 6%.
According to the company, the sequential decrease in revenue was driven primarily by the deconsolidation of the North America onshore pressure pumping business, lower revenue internationally, mainly related to non-recurring year-end product sales, seasonality and price deterioration, and reduced activity in the Gulf of Mexico.
This decline was partially offset by activity growth in the North America onshore business, primarily in well construction product lines.
For the quarter, Baker Hughes’ capital expenditures were $87 million, down $19 million, or 18%, sequentially, and relatively flat compared to the first quarter of 2016. The sequential reduction in capital expenditures was attributable to reduced activity levels internationally and continued focus on capital discipline.
In October last year Baker Hughes entered into an agreement to combine with GE’s oil and gas business (GE Oil & Gas) to create the second largest oilfield technology provider.
With regards to the pending GE Oil & Gas combination, Martin Craighead, Baker Hughes Chairman and Chief Executive Officer, said: “With the benefits and opportunities that this transaction will create for our customers, shareholders and employees, my expectations for what this transformational combination will achieve has continued to grow as we move closer to completing it in mid-2017.”
Offshore Energy Today Staff