Oilfield services provider Baker Hughes reduced its loss for the 2Q 2017 while recording a small decrease in revenues.
Baker Hughes, which is now a GE company, noted that these results did not include GE Oil and Gas’ operations as the merger between the two was closed in early July, creating the world’s only fullstream company. Baker Hughes, a GE company, is the successor to Baker Hughes Incorporated.
According to the financial report on Friday for the pre-merger company, on a GAAP basis, net loss attributable to Baker Hughes for the second quarter of 2017 was $179 million, compared to $129 million in the first quarter of 2017 and compared to $911 million in the second quarter of 2016.
Adjusted net loss, a non-GAAP measure, for the second quarter of 2017 was $46 million, compared to $15 million in the first quarter of 2017. Adjusted net loss excludes adjustments totaling $133 million after tax, primarily associated with litigation and other related matters and merger costs.
Revenues for the second quarter of 2017 were $2.4 billion, which is a slight decrease compared to revenues of $2.41 billion in the second quarter 2016. Sequentially, the company’s revenues increased by 6% or $142 million.
The company explained that the sequential increase was driven by improved activity across U.S. operations, a seasonal activity uplift in the Russia Caspian region, process and pipeline business, and North Sea operations, and certain areas of activity growth internationally, such as Mexico, West Africa, and Iraq.
This increase was partially offset by the seasonal spring break-up in Canada, price deterioration in the Middle East, and a large direct sale into China in the prior quarter, not repeating.
Offshore Energy Today Staff