Red ink for Baker Hughes in 4Q

Oilfield services provider Baker Hughes, a GE company, has recorded a loss for the fourth quarter of 2017, the company said on Wednesday in its second quarterly report following a merger with GE’s oil and gas unit. 

Baker Hughes’ orders of $5.8 billion for the fourth quarter 2017 were up 1% sequentially and down 2% year-over-year on a combined business basis.

To remind, following Baker Hughes’ combination with GE Oil & Gas which closed in July 2017, the new company presents its business results on a combined basis to enhance the evaluation of the profitability of the company and its ongoing operations. Combined business results combine the results of GE Oil & Gas with Baker Hughes as if the closing date had occurred on the first day of all periods presented.

The oilfield services company posted revenues of $5.8 billion for the fourth quarter 2017, an increase of $388 million or up 7% sequentially from revenues of $5.4 billion and down 3% year-over-year on a combined business basis when revenues totaled $5.9 billion.

The company’s GAAP operating loss of $92 million for the quarter, decreased 25% sequentially and increased unfavorably year-over-year on a combined business basis.

Net loss for 4Q 2017 amounted to $82 million compared to a $273 million loss in the third quarter of 2017 and compared to a $147 million profit in the fourth quarter of 2016.

Lorenzo Simonelli, BHGE chairman and chief executive officer, commented: “Overall, we continue to see improvement in activity as early indications of customer capital spending in 2018 are encouraging, particularly for our shorter cycle businesses. 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.

“The subsea market continues to be challenging and activity remains low, with prices continuing to be pressured. We expect activity in the LNG space to increase as customers position to make new capacity available in 2022 and beyond.”

Offshore Energy Today Staff

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