Baker Hughes is reporting fourth quarter revenues of $5.8 billion, an increase of 7 percent for the quarter but a decline of 3 percent for the year.
The Houston, Texas based company with extensive operations in Oklahoma described its results as “growth in our shorter-cycle businesses and declines in our longer-cycle businesses.”
The firm had large business for the year, totaling $22 billion in orders for 2017. The adjusted operating income for the quarter was $303 million, a 26 percent increase from the third quarter. But it was also down 16 percent compared to a year ago.
The revenue figured to be a $0.07 net loss per share for the fourth quarter after the company in July combined its Oil and Gas business of General Electric Company and Baker Hughes Incorporated.
“In the first 180 days as BHGE, we have made strong progress on our integration efforts and aligning our team to the priorities of growing market share, improving margins and generating more cash,” said Lorenzo Simonelli, BHGE chairman and chief executive officer. “l product lines grew in North America, despite the rig count being down versus the third quarter. International activity remains muted with some pockets of healthy activity. ”
Simonelli said the company continues seeing improvement in activity as early indications of customer capital spending in 2018 are encouraging.
“ International activity is stabilizing, and we are seeing signs of activity increase both in the volume and size of tenders for new work as customers feel more confident about their operating costs and commodity price stability,” he added.
He commented about international work as BHGE was recently named the exclusive supplier for early production phases of the development of the Camo field northwest of the Shetland Islands in the UK. And the company also secured a three-year multimillion dollar well construction contract in the Middle East.
Corporate costs were $92 million in the fourth quarter of 2017, compared to $89 million in the prior quarter and $181 million in the fourth quarter of 2016.
