Baker Hughes sees bright skies ahead

Landing work in some of the largest international oil and gas projects, Baker Hughes said Friday it was expecting growth on a global scale.

Baker Hughes, operating for now under the umbrella of General Electric, reported adjusted net income during the second quarter of $41 million, up 7 percent for the period ending March 31. In its oilfield equipment segment, the company said Friday it secured its largest orders for the quarter in three years.

"North American production is increasing as operators grow rig and well counts, and we are seeing signs of increasing international activity in some geomarkets," Chairman and CEO Lorenzo Simonelli said in a statement. "Our portfolio mix positions us well for short- and long-term growth as the market improves and the next wave of customer projects come into view."

Baker Hughes reported fourth-quarter revenue of $5.8 million, an increase of 7 percent from the third quarter, but down 3 percent year over year. The company publishes a weekly count of rig activity globally and the figures serve as a loose gauge for confidence in the exploration and production, or upstream, side of the energy sector

In its latest report, the company reported a rig count increase for North America, but declining activity elsewhere.

GE in June announced plans to shed its 62.5 percent stake in Baker Hughes. At the time, Mhairidh Evans, a principal upstream analyst at consultant firm Wood Mackenzie, told UPI the divestment says more about GE's plans to simplify its operations than it does about Baker Hughes.

"Baker Hughes remains a tier one player," she said.

GE reported second-quarter revenues of $7.6 billion, down 19 percent.

During the second quarter, Baker Hughes landed contracts with a subsidiary of Chevron in Australia for work at its Gorgon project, one of the largest natural gas projects in the world. In Brazil, the company secured work for a floating production and storage operating vessel for the Libra oil field.

"This will be the largest FPSO in the country at a capacity of up to 180,000 barrels per day," the company stated.

Total orders for Baker Hughes were $6 billion, up 15 percent from the previous quarter.

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