Subsea Setback for Baker Hughes in Q4
Baker Hughes has recognized ‘post GE Oil & Gas merger’ net loss for the quarter ended December 31, 2017 of $29 million, or 7 cents per share.
Sequentially, net loss narrowed from $104 million, or $0.24 per diluted share.
Adjusted earnings for the quarter were $65 million, or $0.15 per diluted share, excluding adjustments of $0.22 per diluted share.
Quarterly revenue was $5.75 billion, down 2 per cent year-over-year, and up some 1 percent when compared to Q3 2017.
The company said that in its ‘Oilfield Equipment’ segment, the subsea market remains challenging with low activity levels and pricing challenges.
Oilfield Equipment orders were down 27 per cent year-over-year, with equipment orders down 42 per cent. Services orders increased by 21 percent year-over-year.
Oilfield Equipment revenues of $672 million for the quarter decreased $182 million, or 21%, year-over-year. The decrease was driven by lower opening backlog in the subsea production systems business, as well as lower transactional services activity mainly in the North Sea and Sub-Saharan Africa, the company said in it’s quarterly financial report.
Baker Hughes was officially announced as a GE company on July 4, 2017, in a partnership structure, pursuant to which Baker Hughes was converted to a partnership and GE contributed its Oil & Gas business into that partnership.
However, following ‘disappointing’ results GE reported for the Q3 2017, GE said it is evaluating exit options on Baker Hughes.
Subsea World News Staff