Baker Hughes has announced a net income for the second quarter 2010 of US$93 million compared to net income of $87 million for the second quarter 2009 and net income of $129 million for the first quarter 2010.
Revenue for the second quarter 2010, which includes revenue for recently-acquired BJ Services for May and June 2010, was $3.37 billion, up 44% compared to $2.34 billion for the second quarter 2009 and up 33% compared to $2.54 billion for the first quarter 2010.
Chad Deaton, Baker Hughes chairman and CEO, said: “Results in the second quarter were mixed. Operationally, our performance improved in North America, Russia and Asia Pacific, each making significant improvement sequentially. However, in Africa and Latin America, where we have invested heavily, revenue has lagged and our profit was below our expectations. With our organisation now well established, our focus is on improving efficiency and operating margins.
“In the quarter, we completed our first year in our new geographic organisation, and on April 28th we closed on our acquisition of BJ Services and began integrating its international operations into those of Baker Hughes. BJ Services has had a positive impact on our results, and excluding acquisition-related costs, was already accretive to earnings per share in its first two months. The international integration is proceeding smoothly, and we look forward to integrating US operations once the agreed sale of our Gulf of Mexico stimulation vessels and related assets has Department of Justice approval.
Gulf of Mexico response
Deaton said his company had in response to the Gulf of Mexico drilling moratorium, deployed people and equipment to the company’s US land operations and to international offshore markets where deepwater drilling continues.
“The drilling moratorium negatively impacted our business on the shelf and in deepwater by $0.03 per share during the quarter and has a potential negative impact per share of $0.08 to $0.11 per quarter in the second half of the year,” he said.
“Looking forward, we expect our North America land business to remain strong compared to last year as unconventional gas and oil-directed drilling in the US continues to grow and as the Canada market, where we are a significant participant, rebounds seasonally. We believe international markets will continue to improve and expect our emphasis on operational efficiency to help us improve our international margins significantly by year end.”
Middle East
In Iraq, Baker Hughes signed a three-year technical services agreement with the South Oil Company (SOC) to develop SOC’s wireline capabilities and deploy state of the art wireline data acquisition and logging services in Iraq.
In Saudi Arabia, Baker Hughes received a purchase order for 30 permanent downhole monitoring systems, including advanced pressure and temperature sensors, to be used in conjunction with intelligent well systems. Also in Saudi Arabia the company achieved the milestone of completing and controlling more than 1,000,000 feet of reservoir section with Equalizer(TM) Technology.
Bahrain Petroleum Company’s (BAPCO) 260,000 bpd petroleum refinery recently awarded several water treatment applications to Baker Petrolite Saudi Arabia, in a three-year contract which was transitioned starting in June from the incumbent supplier.
