Baker Hughes announced solid second quarter earnings that saw profits rise to US$408mn, compared to US$93mn for the second quarter of 2010 and US$381mn, for Q1 2011.
Chad C. Deaton, Baker Hughes chairman and chief executive officer, said, "Our performance was solid this quarter with steady improvement of our international profit margin."
Revenue for the second quarter 2011 was US $4.74 billion, up 41 per cent compared to $3.37 billion for the second quarter 2010 and up 5 per cent compared to US $4.53 billion for the first quarter 2011.
Debt decreased by US$233 million to $3.61 billion and cash and short-term investments decreased by US $458 million to $937 million compared to the first quarter 2011.
Baker Hughes also posted a strong performance at its business outside North America, international profit exceeding 13 per cent. That was up more than a percentage point from the first quarter and put the company closer to its 15 per cent margin level it has said it would reach later this year.
The largest sequential improvement was in the Europe, Africa, Russia/Caspian segment. "Globally, spare oil production capacity is tight and we expect growing demand in China, India, developing Asia and the Middle East to support high oil prices and sustain increases in international spending."
"Activity is expected to increase in the second half of 2011 and into 2012 led by steady improvement in Brazil and the Middle East. If activity increases as we anticipate for 2012, conditions should support pricing improvements," Deaton added.
