BAKER HUGHES Q1 2017 RESULTS

April 26, 2017

Baker Hughes Q1 2017 revenue was $2.3 billion, a decrease of $148 million, or 6%, sequentially. Compared to the same quarter last year, revenue declined $408 million, or 15%. The sequential decrease in revenue was driven primarily by the deconsolidation of the North America onshore pressure pumping business, lower revenue internationally, mainly related to non-recurring year-end product sales, seasonality and price deterioration, and reduced activity in the Gulf of Mexico. This decline was partially offset by activity growth in our North America onshore business, primarily in our well construction product lines.
“Baker Hughes delivered another sequential quarter of improved adjusted operating profit, despite industry headwinds in certain market segments,” said Martin Craighead, Baker Hughes Chairman and Chief Executive Officer.
Operating loss before tax for the quarter was $6 million, a decrease of$17 million, compared to an operating profit before tax of $11 million in the prior quarter. The decrease in profitability was driven by an unfavorable mix of revenue and the seasonal activity decline. Profitability also was negatively impacted by mobilization costs for upcoming projects and other one-time expenses. (Source: BHI – Image: San Antomio Business Joural / BHI employee at a Eagle Ford facility)