BAKER HUGHES 2016 RESULTS

Baker Hughes 2016 results were announced and commented by Martin Craighead, Baker Hughes Chairman and Chief Executive Officer. “During 2016, against the back-drop of another difficult year for the industry, we achieved significant progress on our commitment to improve financial performance by reducing operational costs, optimizing our capital structure, and strengthening our commercial strategy.” Revenue for the year was $9.8 billion, down $5.9 billion, or 37%, compared to $15.7 billion for 2015. This reduction resulted from the steep decline in activity, as evident by the 32% drop in the average rig count and global pricing pressures.
Revenue for the quarter was $2.4 billion, an increase of $57 million, or 2%, sequentially.
“Looking ahead for the first half of 2017, we expect onshore revenue in North America to increase as our customers ramp up activity, with service pricing improving but limited by overcapacity. Internationally, we are forecasting activity declines and continued pricing pressure, with pockets of growth onshore. In offshore markets, particularly deepwater, activity declines are expected to be more severe,” Martin Craighead said.