Baker Hughes, a provider of oilfield services, reports a 11% increase in its adjusted quarterly profits

Baker Hughes reported a 11% increase in 'adjusted profits' for the fourth quarter, as demand for?its gas-technology equipment and services outweighed weakness in its oilfield equipment and services business.

In recent quarters, the company has benefited from the demand for its equipment and services such as compressors and gas turbines that it offers to LNG companies, as low oil prices have hurt drilling and completion activity in oil basins.

The company's revenue from its industrial and energy technology business, which includes gas technology and services, and accounts for just over half of the total, rose 9% to $3.8 Billion.

The company reported that revenue from its oilfield equipment and services business fell by?8%, to $3.6 billion. Cost savings were credited with helping increase margins.

The Houston-headquartered company forecast mid-single-digit growth in its adjusted earnings before interest, tax, depreciation and amortization, with margins in its industrial and technology business expanding to its ?20% target and oilfield service and equipment business margins remaining relatively flat.

Baker Hughes said that they expect industrial and energy orders to continue to be at high levels due to the continued growth of LNG, and strong demand for gas infrastructure and floating production, storage, and offloading systems.

Baker Hughes' adjusted net income for the three months ended December 31 was $772m, or 78c per share. This is up from $694m, or 70c per share a year ago.

The company took several charges, including a $215-million restructuring charge. Reporting by Arathy S. Somasekhar, Houston; Editing and rewriting by David Gregorio & Diane Craft

(source: Reuters)