Spending in the Middle East is set to rise next year, according to Baker Hughes, which has released its third quarter results.
The firm described its international Q3 figures as disappointing, but believes that customer spending has now reached its low point.
“International results were disappointing with revenue less than expected and price discounting greater than expected,” Chad Deaton, Baker Hughes chairman, president and chief executive officer told Reuters.
“Our operating profit margin was also impacted by the extra costs we are carrying to assure a smooth organisational transition we announced in May 2009. Given the progress we are making on this company transformation these additional costs should largely be behind us as we enter 2010,” he added.
“Internationally, we believe that customer spending reached its low point this quarter and that forecasts for increasing economic growth, particularly in China, India and the Middle East, combined with modest spare production capacity are supporting higher oil prices and laying the foundation for increased spending in 2010,” said Deaton.
The firm’s net income for the third quarter was $55 million, compared $429 million for the same time in 2008 and $87 million for the second quarter of 2009. Net income for the third quarter 2009 includes expenses of $38 million before tax.
