Baker Hughes Profit Rises on Strong Foreign Demand
Baker Hughes Co reported a rise in quarterly adjusted profit on Wednesday, helped by increased demand for its oilfield services and higher margins for its turbomachinery such as gas turbines and compressors.
The company's results contrasted with steep falls in revenue reported by some of its rivals in the oilfield services industry as it benefited from stronger equipment sales to customers building liquefied natural gas plants and a rise in business outside the United States.
The company, which was separated from General Electric Co. and started trading independently this month, said it had seen about 80 million tons per annum of new LNG capacity reach final investment decision since the fourth quarter of 2018 and that the industry was on track to reach the 100 MTPA by the end of 2019.
Operating income in the turbomachinery and process solutions unit, the company's second largest business, rose 22% on higher margin from equipment sales and cost savings. Revenue from the business, however, fell 14%, partly due to the sale of a business.
International oilfield services revenue grew 6% from the prior quarter, helped by strong growth in Asia Pacific, the Middle East and Europe, although it fell 3% in North America.
Net income attributable to the company rose to $57 million in the three months ended Sept. 30 from $13 million a year earlier.
Adjusted net income rose to $114 million, or 21 cents per share from $78 million, or 19 cents per share.
Revenue rose 4% to $5.88 billion.
Reporting by Shariq Khan