US oilfield services firm Baker Hughes has announced soaring Q2 profit on the back of solid performance in Iraq and increasing returns frmo unconventional domestic drilling.
Net income for the quarter was $388 million or 77 cents per share, more than treble the $93 million or 23 cents per share in the same quarter last year.
Revenue for the quarter came in at $4.74 billion, up 41% compared to $3.37 billion for the quarter last year.
The results follow similarly strong quarterly performances from competitors Halliburton and Schlumberger as producers rush to cash in on high crude-oil prices globally and to tap North America’s newfound reserves of oil and natural gas, a strategic growth area for Baker.
Analysts had expected earnings of 91 cents on revenue of $4.5 billion, according to Reuters.
Baker Hughes said operating margins jumped 13% from 6.9% and Chief Executive Chad Deaton said he expects further improvement as the company nudges prices higher.
“The fundamentals of our business indicate that pricing should gradually improve, and we’re evaluating specific markets and technologies for opportunities to raise prices either in existing contracts or submitting new tenders,” Deaton said during a conference call to discuss the results.
“Globally, spare oil production capacity is tight and we expect growing demand in China, India, developing Asia and the Middle East to support high oil prices and sustain increases in international spending. Activity is expected to increase in the second half of 2011 and into 2012 led by steady improvement in Brazil and the Middle East. If activity increases as we anticipate for 2012, conditions should support pricing improvements.”
