Baker Hughes Incorporated announced today net income on a GAAP basis for the second quarter of 2013 of $240 million or $0.54 per diluted share.
This includes after-tax charges of $20 million ($0.05 per diluted share) for bad debt provisions in Latin America and $7 million ($0.02 per diluted share) for an inventory charge related to certain proppants used in pressure pumping in North America. These results compare to net income of $0.60 per diluted share for the first quarter of 2013, and $1.00 per diluted share for the second quarter of 2012.
Revenue for the second quarter of 2013 was $5.49 billion, up 5% compared to $5.23 billion for the first quarter of 2013 and up 3% compared to $5.33 billion for the second quarter of 2012.
“Our second quarter results reflect mixed performance across our international operating segments,” said Martin Craighead, Baker Hughes’ Chairman and Chief Executive Officer. “Activity levels continued to rise across the Eastern Hemisphere based on strong demand in deepwater markets, particularly in Europe and Africa, as well as seasonal improvements in Russia. However, our gains in the East were more than offset by a sharp decline in Latin America resulting from reduced activity and demobilization costs in Brazil and Mexico. In response to these conditions, during the second quarter we began taking actions to reduce costs in our Latin America operations. This process should be substantially complete in the third quarter leading to increased profitability in the second half of the year.”
Craighead added, “Our U.S. Pressure Pumping business continues to improve as recent share gains and operational improvements are increasing fleet utilization and profitability. Combined with record performance from our Gulf of Mexico operations, revenue in North America grew 3% sequentially, despite Canadian seasonality reaching its lowest level in four years. Now that Canada is returning to normal activity levels, we foresee a strong rebound in operating margins in the third quarter for North America.”
Cash increased $22 million to $1.12 billion as of June 30, 2013, compared to $1.10 billion at March 31, 2013. Debt decreased by $183 million to $4.91 billion compared to the first quarter of 2013.
Capital expenditures were $551 million, depreciation and amortization expense was $424 million and dividend payments were $66 million in the second quarter of 2013.
EBITDA in the second quarter of 2013 was $860 million, a decrease of $10 million compared to the first quarter of 2013.