Baker Hughes' Reports Lower Profits, Revenue for 1Q 2013

Oilfield services provider Baker Hughes Inc. reported lower profits and revenue for the first quarter amid higher activity levels in Canada and improved utilization in its pressure pumping business.

The company's net income fell to $267 million, or $.60 per share, from $379 million, or $.086 per share last year. Revenue for the first quarter of 2013 was $5.23 billion, down 2 percent compared to $5.33 billion for the fourth quarter of 2012 and down 2 percent compared to $5.36 billion for the first quarter of 2012.

"Our first quarter results reflect improvement in our North America segment," said Martin Craighead, Baker Hughes' president and chief executive officer, in a released statement. "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 percent decline in the U.S. onshore rig count since last quarter. Following five consecutive quarters of declines in the U.S. rig count, we are now forecasting a modest increase for the remainder of the year."

The company also reported that adjusted net income for the first quarter of this year excludes a foreign exchange loss of $23 million before and after-tax ($.05 per diluted share) on the devaluation of Venezuela's currency in February.

Baker Hughes' revenue decreased 9 percent in North America to $2.603 billion and slipped 4 percent in Europe/Africa/Russian Caspian to $854 million.

"We believe Baker Hughes' 1Q13 earnings release has positive implications for the stock," noted analyst James West in Barclays Earnings at a Glance analysis. "Results in North America improved sequentially with higher revenue and stronger operating margins and the company showed solid growth, especially for margins, in the Middle East/Asia Pacific region as well."

Baker Hughes' cash increased roughly 8 percent from last quarter to $1.1 billion and its capital expenditure for the quarter was $490 million, compared to $727 million in 4Q 2012, West reported. Additionally, Baker's debt increased from $176 million to more than $5 billion.

An area worth noting in the company's lineup is the Middle East/Asia Pacific region. Revenue for this segment, $894 million, improved 1 percent sequentially and was higher than Barclay's forecast of $864 million.

"Operating income of $116 million rose 45 percent from the previous quarter and far exceeded our $77 million estimate," West stated. "The margin at 13 percent expanded from 9 percent in the prior period and was well above our 8.9 percent forecast."

"Offset was impressive in the Middle East/Asia Pacific region, which suggests BHI is making progress in Iraq," Tudor Pickering Holt also noted in its daily Energy Thoughts analysis.   

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Baker Hughes' Reports Lower Profits, Revenue for 1Q 2013

Oilfield services provider Baker Hughes Inc. reported lower profits and revenue for the first quarter amid higher activity levels in Canada and improved utilization in its pressure pumping business.

The company's net income fell to $267 million, or $.60 per share, from $379 million, or $.086 per share last year. Revenue for the first quarter of 2013 was $5.23 billion, down 2 percent compared to $5.33 billion for the fourth quarter of 2012 and down 2 percent compared to $5.36 billion for the first quarter of 2012.

"Our first quarter results reflect improvement in our North America segment," said Martin Craighead, Baker Hughes' president and chief executive officer, in a released statement. "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 percent decline in the U.S. onshore rig count since last quarter. Following five consecutive quarters of declines in the U.S. rig count, we are now forecasting a modest increase for the remainder of the year."

The company also reported that adjusted net income for the first quarter of this year excludes a foreign exchange loss of $23 million before and after-tax ($.05 per diluted share) on the devaluation of Venezuela's currency in February.

Baker Hughes' revenue decreased 9 percent in North America to $2.603 billion and slipped 4 percent in Europe/Africa/Russian Caspian to $854 million.

"We believe Baker Hughes' 1Q13 earnings release has positive implications for the stock," noted analyst James West in Barclays Earnings at a Glance analysis. "Results in North America improved sequentially with higher revenue and stronger operating margins and the company showed solid growth, especially for margins, in the Middle East/Asia Pacific region as well."

Baker Hughes' cash increased roughly 8 percent from last quarter to $1.1 billion and its capital expenditure for the quarter was $490 million, compared to $727 million in 4Q 2012, West reported. Additionally, Baker's debt increased from $176 million to more than $5 billion.

An area worth noting in the company's lineup is the Middle East/Asia Pacific region. Revenue for this segment, $894 million, improved 1 percent sequentially and was higher than Barclay's forecast of $864 million.

"Operating income of $116 million rose 45 percent from the previous quarter and far exceeded our $77 million estimate," West stated. "The margin at 13 percent expanded from 9 percent in the prior period and was well above our 8.9 percent forecast."

"Offset was impressive in the Middle East/Asia Pacific region, which suggests BHI is making progress in Iraq," Tudor Pickering Holt also noted in its daily Energy Thoughts analysis.   

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Baker Hughes' Reports Lower Profits, Revenue for 1Q 2013

Oilfield services provider Baker Hughes Inc. reported lower profits and revenue for the first quarter amid higher activity levels in Canada and improved utilization in its pressure pumping business.

The company's net income fell to $267 million, or $.60 per share, from $379 million, or $.086 per share last year. Revenue for the first quarter of 2013 was $5.23 billion, down 2 percent compared to $5.33 billion for the fourth quarter of 2012 and down 2 percent compared to $5.36 billion for the first quarter of 2012.

"Our first quarter results reflect improvement in our North America segment," said Martin Craighead, Baker Hughes' president and chief executive officer, in a released statement. "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 percent decline in the U.S. onshore rig count since last quarter. Following five consecutive quarters of declines in the U.S. rig count, we are now forecasting a modest increase for the remainder of the year."

The company also reported that adjusted net income for the first quarter of this year excludes a foreign exchange loss of $23 million before and after-tax ($.05 per diluted share) on the devaluation of Venezuela's currency in February.

Baker Hughes' revenue decreased 9 percent in North America to $2.603 billion and slipped 4 percent in Europe/Africa/Russian Caspian to $854 million.

"We believe Baker Hughes' 1Q13 earnings release has positive implications for the stock," noted analyst James West in Barclays Earnings at a Glance analysis. "Results in North America improved sequentially with higher revenue and stronger operating margins and the company showed solid growth, especially for margins, in the Middle East/Asia Pacific region as well."

Baker Hughes' cash increased roughly 8 percent from last quarter to $1.1 billion and its capital expenditure for the quarter was $490 million, compared to $727 million in 4Q 2012, West reported. Additionally, Baker's debt increased from $176 million to more than $5 billion.

An area worth noting in the company's lineup is the Middle East/Asia Pacific region. Revenue for this segment, $894 million, improved 1 percent sequentially and was higher than Barclay's forecast of $864 million.

"Operating income of $116 million rose 45 percent from the previous quarter and far exceeded our $77 million estimate," West stated. "The margin at 13 percent expanded from 9 percent in the prior period and was well above our 8.9 percent forecast."

"Offset was impressive in the Middle East/Asia Pacific region, which suggests BHI is making progress in Iraq," Tudor Pickering Holt also noted in its daily Energy Thoughts analysis.   

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Groups Praise Revenue Sharing Bill, Call for More Access to US Acreage

The American Petroleum Institute (API) and National Ocean Industries Association welcomed an offshore revenue sharing bill proposed by Sen. Lisa Murkowski (R-Alaska) and Sen. Mary Landrieu (D-La.) Wednesday.

The senators this week introduced Fixing America's Inequality with Revenues (FAIR) Act, which is designed to ensure all energy-producing states receive a full share of the revenues they help produce while also encouraging investments in clean energy and conservation.

"The federal treasury benefits from the royalties and taxes on production in federally owned waters off Alaska's coast," said Murkowski in a statement Tuesday. "Providing a portion of that money to Alaska would help the state strengthen its emergency response capabilities and build critical infrastructure, such as airfields, deepwater ports, and docks that will help safely open the Arctic, which will further increase federal revenues."

The FAIR Act would provide up to 37.5 percent of all revenues from offshore development to coastal states, including revenues from oil and gas and the development of alternative and renewable energy resources.

Under the bill, states would automatically receive 27.5 percent of these revenues, 25 percent of which would go to the coastal communities most impacted by offshore development. States are eligible for an additional 10 percent if they establish funds to support projects relating to clean energy or conservation.

The bill also would expand revenue sharing onshore to include renewable energy production on federal lands at the same 50-percent share currently given for oil and gas production. The bulk of revenues from offshore development, 62.5 percent, would still flow to the federal government.

The legislation marks an important step towards an all-of-the-above energy policy for the United States, said API Director of Upstream & Industry Operations Erik Milito in a statement Wednesday.

"As today's successful lease sale in the Central Gulf of Mexico demonstrates, the industry is investing billions in American energy development but could do more if additional areas are opened for business," Milito commented. "Expanding access could create one million new jobs, generate $127 billion in government revenue in under a decade, and dramatically increase domestic energy production."

Allowing all U.S. coastal states to share in prospective future revenue from both traditional and renewable offshore energy activities is sound public policy, NOIA President Randall Luthi commented in a Wednesday statement. The group has long supported revenue sharing as fair and equitable treatment for coastal states supporting responsible offshore oil and gas exploration and development.

"However, steps must be taken to ensure that lease sales are actually conducted in new areas where they're currently prohibited or else the revenue is merely theoretical."

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Groups Praise Revenue Sharing Bill, Call for More Access to US Acreage

The American Petroleum Institute (API) and National Ocean Industries Association welcomed an offshore revenue sharing bill proposed by Sen. Lisa Murkowski (R-Alaska) and Sen. Mary Landrieu (D-La.) Wednesday.

The senators this week introduced Fixing America's Inequality with Revenues (FAIR) Act, which is designed to ensure all energy-producing states receive a full share of the revenues they help produce while also encouraging investments in clean energy and conservation.

"The federal treasury benefits from the royalties and taxes on production in federally owned waters off Alaska's coast," said Murkowski in a statement Tuesday. "Providing a portion of that money to Alaska would help the state strengthen its emergency response capabilities and build critical infrastructure, such as airfields, deepwater ports, and docks that will help safely open the Arctic, which will further increase federal revenues."

The FAIR Act would provide up to 37.5 percent of all revenues from offshore development to coastal states, including revenues from oil and gas and the development of alternative and renewable energy resources.

Under the bill, states would automatically receive 27.5 percent of these revenues, 25 percent of which would go to the coastal communities most impacted by offshore development. States are eligible for an additional 10 percent if they establish funds to support projects relating to clean energy or conservation.

The bill also would expand revenue sharing onshore to include renewable energy production on federal lands at the same 50-percent share currently given for oil and gas production. The bulk of revenues from offshore development, 62.5 percent, would still flow to the federal government.

The legislation marks an important step towards an all-of-the-above energy policy for the United States, said API Director of Upstream & Industry Operations Erik Milito in a statement Wednesday.

"As today's successful lease sale in the Central Gulf of Mexico demonstrates, the industry is investing billions in American energy development but could do more if additional areas are opened for business," Milito commented. "Expanding access could create one million new jobs, generate $127 billion in government revenue in under a decade, and dramatically increase domestic energy production."

Allowing all U.S. coastal states to share in prospective future revenue from both traditional and renewable offshore energy activities is sound public policy, NOIA President Randall Luthi commented in a Wednesday statement. The group has long supported revenue sharing as fair and equitable treatment for coastal states supporting responsible offshore oil and gas exploration and development.

"However, steps must be taken to ensure that lease sales are actually conducted in new areas where they're currently prohibited or else the revenue is merely theoretical."

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Groups Praise Revenue Sharing Bill, Call for More Access to US Acreage

The American Petroleum Institute (API) and National Ocean Industries Association welcomed an offshore revenue sharing bill proposed by Sen. Lisa Murkowski (R-Alaska) and Sen. Mary Landrieu (D-La.) Wednesday.

The senators this week introduced Fixing America's Inequality with Revenues (FAIR) Act, which is designed to ensure all energy-producing states receive a full share of the revenues they help produce while also encouraging investments in clean energy and conservation.

"The federal treasury benefits from the royalties and taxes on production in federally owned waters off Alaska's coast," said Murkowski in a statement Tuesday. "Providing a portion of that money to Alaska would help the state strengthen its emergency response capabilities and build critical infrastructure, such as airfields, deepwater ports, and docks that will help safely open the Arctic, which will further increase federal revenues."

The FAIR Act would provide up to 37.5 percent of all revenues from offshore development to coastal states, including revenues from oil and gas and the development of alternative and renewable energy resources.

Under the bill, states would automatically receive 27.5 percent of these revenues, 25 percent of which would go to the coastal communities most impacted by offshore development. States are eligible for an additional 10 percent if they establish funds to support projects relating to clean energy or conservation.

The bill also would expand revenue sharing onshore to include renewable energy production on federal lands at the same 50-percent share currently given for oil and gas production. The bulk of revenues from offshore development, 62.5 percent, would still flow to the federal government.

The legislation marks an important step towards an all-of-the-above energy policy for the United States, said API Director of Upstream & Industry Operations Erik Milito in a statement Wednesday.

"As today's successful lease sale in the Central Gulf of Mexico demonstrates, the industry is investing billions in American energy development but could do more if additional areas are opened for business," Milito commented. "Expanding access could create one million new jobs, generate $127 billion in government revenue in under a decade, and dramatically increase domestic energy production."

Allowing all U.S. coastal states to share in prospective future revenue from both traditional and renewable offshore energy activities is sound public policy, NOIA President Randall Luthi commented in a Wednesday statement. The group has long supported revenue sharing as fair and equitable treatment for coastal states supporting responsible offshore oil and gas exploration and development.

"However, steps must be taken to ensure that lease sales are actually conducted in new areas where they're currently prohibited or else the revenue is merely theoretical."

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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AWE Sees Revenue Increase, HSE Measurement Improves

AWE posted Wednesday a rise in revenue and production volume, and an improvement in its health and safety (HSE) measurement for the quarter ended Dec. 31, 2012.

In its quarterly report, AWE noted that sales revenue for the three months to Dec. 31, 2012, was at $80.6 million, up 13 percent from the previous quarter. The company produced 1.3 million barrels of oil in the same period, up 33 percent from three months ago.

AWE attributed the rise in production mostly to the resumption of output from the BassGas project and a ramp up in drilling activity at the Sugarloaf asset. The BassGas project – located offshore southeast Australia – was shut-in for ten months last year for platform upgrading works. AWE was able to restart production at the BassGas project in mid-October last year. For its onshore Texas-based Sugarloaf project, AWE saw increased oil and gas production through an additional 12 wells which were brought online last year. At present, the Sugarloaf project houses 63 producing wells.

AWE also saw improvements on the HSE front. The company posted zero Lost Time Injuries (LTI) for the quarter ended Dec. 31, 2012.

"Given the nature of our industry, it is important that we remain committed to our goal of zero harm and strive to ensure that our employees are award of safety at all times," AWE's Managing Director Bruce Clement said in a statement.

During the financial year 2011/12 ended June 30, the company recorded six LTIs across its operations. AWE acknowledged that the outcome was unacceptable.

AWE stated in its 2012 report that its key HSE objectives for 2012/13 include: recruiting a corporate HSE manager, developing an integrated HSE management system, implementing a recognition program for business units delivering the best safety performance and establishing systems for sharing best practices.

AWE is maintaining its target of zero LTIs for the financial year 2012/13.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Origin Energy Sees Decline in Production, Sales Revenue

Origin Energy released its quarterly production report for its exploration and production business, reporting production of 29 petajoules equivalent (PJe) and sales revenues of $207 million (AUD 200 million).

When compared to the previous quarter, production was 13 percent lower, while sales revenues saw a decline of 11 percent.

Origin said that the drop in production is due to scheduled maintenance shutdowns at the Otway and Kupe gas plants for 23 days and 25 days respectively, partly offset by the return of production at the BassGas project. The company's lower production volume directly impacted its revenue for the quarter.

Origin noted that significant progress continues on the Australia Pacific LNG (APLNG) project, and at the end of the reporting period, the upstream component of the project was 29 percent complete and the downstream component was 31 percent complete. Origin added that it was not required to make any cash contributions in the December quarter as a result of Sinopec's cash injection and the first draw down from APLNG's $8.5 billion project finance facility.

Origin also revealed that the APLNG project ran into recent operational hiccups following tropical cyclone Oswald in late January.

"Flooding and rainfall impacted construction activities due to access restrictions and wet conditions. Drilling was halted for approximately three days due to access constraints, while site activities on Curtis Island were restricted for seven days," Origin said in a statement.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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