Oilfield services provider Baker Hughes Inc. (BHI) Friday reported lower profit and revenue for the first quarter that topped analysts' consensus estimates, amid higher activity levels in Canada and improved utilization in the Pressure Pumping business. The company also forecast a modest increase in U.S. rig count for the remainder of the year. The stock is adding 4 percent in pre-market activity.
Peer Schlumberger Ltd. (SLB) also reported Friday a decline in first-quarter profit, but owing to higher charges. Adjusted earnings increased and topped analysts' consensus estimates as revenues were boosted by strong international activity, despite a weak North American performance.
Baker Hughes's net income attributable to the company fell to $267 million or $0.60 per share from $379 million or $0.86 per share last year.
Excluding a foreign exchange loss of $0.05 per share related to the devaluation of Venezuela's currency in February, adjusted net income was $290 million or $0.65 per share for the quarter. On average, 31 analysts polled by Thomson Reuters expected earnings of $$0.63 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue slipped 2 percent to $5.23 billion from $5.36 billion in the prior year. Analysts expected revenues of $5.18 billion.
Revenue slid 9 percent in North America to $2.603 billion and slipped 4 percent in Europe/Africa/Russia Caspian to $854 million.
Latin America and Middle East/Asia Pacificas well as Industrial Services and Other reported revenue growth.
Martin Craighead, CEO, said, ''Our first quarter results reflect improvement in our North America segment. The increased revenues and profit margins in North America are due to higher activity levels in Canada, along with improved utilization in our Pressure Pumping business despite a 3% decline in the U.S. onshore rig count since last quarter.''
After five consecutive quarters of declines in the U.S. rig count, Baker Hughes forecast a modest increase for the remainder of the year.
The international business saw typical seasonal declines, with particular weakness in the Europe/Africa/Russia Caspian segment. The Gulf of Mexico was impacted by industry-wide delays in the quarter.
BHI, which closed at $44.60 on Thursday, is adding 4 percent in pre-market activity.
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