• 38 mins Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
OPEC Looks To Permanently Expand The Cartel

OPEC Looks To Permanently Expand The Cartel

OPEC Secretary General Mohamed Barkindo…

Where To Look For Value This Earnings Season

Where To Look For Value This Earnings Season

Energy majors are about to…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Baker Hughes Still Struggling In North America

Eagle Ford drilling rig

Oilfield services group Baker Hughes (NYSE:BHI) reported on Tuesday a lower-than-expected adjusted net loss for the third quarter, but said that its North American business will only slightly grow in the fourth quarter in a persisting tough pricing environment.

The world’s third-largest oilfield services provider Baker Hughes was more bearish on its immediate-term North American business compared to competitors Schlumberger (NYSE:SLB) and Halliburton Company (NYSE:HAL), both of which signaled increased North American activity when they reported third-quarter figures last week.

Baker Hughes today reported an adjusted loss attributable to the company of US$0.15 per share, up from the US$0.05 loss per share for the third quarter of 2015, but down from the US$0.90 per-share loss for the second quarter this year. This quarter’s loss compares to an average analyst estimate for a loss of US$0.44 per share.

Including after-tax charges of US$365 million related to asset impairments, restructuring, litigation settlements, and goodwill impairment, Baker Hughes booked a net loss of US$429 million, versus a US$911-million loss for the second quarter.

The group’s revenue of US$2.353 billion – which fell slightly short of the US$2.41-billion analyst estimate – dropped by 2 percent on the quarter and by 38 percent on the year. Baker Hughes attributed the sequential drop to lower activity, mostly in the Gulf of Mexico, Norway, and West Africa deepwater operations, coupled with higher pricing pressure. In the third quarter, activity in some areas increased compared with the second quarter, mostly in the U.S. onshore business, and in Canada, Saudi Arabia, and Kuwait.

The group’s North America revenue came in at US$674 million, and despite the fact that it increased by 1 percent over the second quarter, the “competitive landscape remains challenging across the entire segment,” Baker Hughes said in its earnings release. The uptick was due to the onshore activity in the U.S. and a seasonal increase in Canada, but they were almost completely offset by a “steep decline” in the Gulf of Mexico.

Elsewhere, the Latin American business was dogged by reduced activity in Venezuela and Mexico. Lower Norway activity and unfavorable exchange rates in West Africa plagued the Europe/African/Russian/Caspian business. Middle East/Asia Pacific revenues were flat, with activity declines and price erosion offsetting pick-ups in activity in Saudi Arabia and Kuwait.

Baker Hughes, which called off a planned merger with Halliburton in the second quarter due to regulatory hurdles and depressed industry conditions – said that it expects its North American business to “modestly increase” in the last quarter of the year, with customers slowly going back to work, but warned that the pricing environment remains “tough”.

Internationally, Baker Hughes sees activity decline and pricing pressure to persist.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News