Oilfield services provider Baker Hughes Inc. (BHI), which is being acquired by Halliburton Co. (HAL), Tuesday said fourth-quarter profit increased significantly from the previous year, supported by growth in revenues especially in North America. Adjusted revenues topped estimates.
Martin Craighead, Baker Hughes' Chairman and CEO, said, "Our fourth quarter results punctuate a record year for our company in 2014. We delivered very strong growth in revenue, earnings and free cash flow during the fourth quarter."
Net income attributable to the company surged to $663 million or $1.52 per share from $248 million or $0.56 per share last year.
Excluding a $0.08 per share gain associated with the deconsolidation of a joint venture, adjusted net income for the latest quarter was $629 million, or $1.44 per share. Adjusted earnings per share were $0.62 last year. On average, 30 analysts polled by Thomson Reuters expected earnings of $1.07 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue rose to $6.64 billion from $5.86 billion in the prior-year quarter. Analysts estimated revenues of $6.41 billion for the period.
In North America, revenue improved to $3.304 billion from $2.744 billion in the previous year. As the quarter progressed, activity levels rose in Canada, West Texas, and the Southern geomarket, and remained strong across all onshore operations until the holiday period.
Europe/Africa/Russia Caspian as well as Middle East/Asia Pacific saw increased revenues during the period. In Europe/Africa/Russia Caspian, revenue benefited from wireline services, completion systems, and upstream chemicals.
The Middle East/Asia Pacific saw high activity and strong year-end product sales in North Arabian Gulf, North Asia, and Australasia geomarkets. Revenue from Industrial Services also were higher at $377 million, compared to $346 million in the prior year.
BHI closed up 5.6 percent on Monday at $56.56.
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