Baker Hughes (BHI) Strikes with Impressive Earnings

Michael Teague |

Top US oil & gas services company Baker Hughes (BHI) reported earnings early on Friday morning that testified to an all-around spectacular third quarter.

For the recently ended period, Baker Hughes reported net income of $341 million, or $0.77 cents per share on revenue of $5.79 billion, compared to the prior year period during which the company earned $279 million, $0.63 per share on revenue of $5.03 billion. On an adjusted basis, the company beat surpassed expectations with earnings per share at $0.81, while Street expectations had been for $0.78 cents on revenue of $5.77 billion.

Furthermore, the company saw margins edge up over 10 percent, while the revenue and net income results represent increases of 8 and 22 percent respectively.

The increases are largely due to a ramping-up of international drilling operations, particularly in the Asia Pacific and Western Asian regions, as well as Canada, as lower natural gas prices in the US have put a crimp on demand closer to home. One-time items were the result of restructuring costs in operations in Latin America.

It should be evident by now that the shale/fracking revolution will not be contained to the North American continent. Oil and gas services companies stand to benefit greatly as a result, as they can skip about the globe plying their trade, not tied to any particular project or concern beyond what services operators request of them. Schlumberger Limited (SLB) , the world’s largest services company, also reported earnings on Friday with similarly impressive results.

Stern Agee’s Stephen Gengaro described Baker’s international performance thus: “The Middle East/Asia Pacific revenue and operating profit beat our estimates by 5.4% and 23.6%, respectively. Europe/Africa/Russia/Caspian operating profits were also strong and exceeded our estimates by 13.4%. The Middle East/Asia Pacific region continues to be the largest international segment for BHI.”

Shares for Baker Hughes were trading almost 8 percent higher on Friday, to $55.80 by midday. Schlumberger was also trading higher by 2.4 percent to $93.61.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
BHI Baker Hughes Incorporated 53.70 -0.29 -0.54 1,978,958 Trade
SLB Schlumberger N.V. 65.89 -0.04 -0.06 8,043,471 Trade
DKTS Top Shelf Brands Holdings Corp 0.00 0.00 0.00 0


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