HOUSTON (dpa-AFX) - Oilfield services provider Baker Hughes Inc. (BHI) reported Friday a higher profit in its third quarter as revenues were benefited by growth in most regions with increased activity.
Chairman and Chief Executive Officer Martin Craighead said, 'During the quarter, we achieved record revenue and strong earnings growth. In addition, we increased margins sequentially in each of our four geographic segments.'
For the third quarter, net income attributable to Baker Hughes increased to $341 million or $0.77 per share, from $279 million or $0.63 per share in the same quarter last year.
Adjusted attributable net income was $358 million or $0.81 per share, while prior year's adjusted income was $322 million or $0.73 per share. On average, 30 analysts polled by Thomson Reuters expected the company to report earnings of $0.78 per share for the quarter. Analysts' estimates typically exclude special items.
The latest quarter's adjusted results excluded severance charges of $17 million or $0.04 per share related to restructuring in Latin America, but included a charge of $42 million or $0.09 per share for bad debt provisions in Latin America.
Revenues for the quarter rose to $5.79 billion from $5.36 billion in the prior year quarter. Twenty one analysts had consensus revenue estimate of $5.77 billion for the quarter.
On a geographical basis, revenues from Eastern Hemisphere operations increased revenue 20 percent at higher margins as a result of increased activity and improved mix. This growth was led by strong performance in the Middle East, Asia Pacific, Africa, and Russia Caspian.
The company noted that North America delivered higher revenues and margins with the seasonal recovery in Canada and improved performance in all of its product lines. Across the region, growth was led by Drilling Services, Completions Systems, Artificial Lift, and Upstream Chemicals businesses.
Latin America alone generated lower revenues in the third quarter.
Craighead added, 'The increasing complexity of oil and gas production aligns with our strength in technology and reservoir expertise. By leveraging our heritage of innovation, we will continue to deliver new technologies and unique solutions that address tomorrow's exploration and production challenges.'
Bigger rival Schlumberger Ltd. (SLB) posted higher third-quarter earnings and revenues.
Baker Hughes shares closed Thursday's trading at $51.78, up $0.80 or 1.57 percent.
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