Despite a dramatic drop in crude oil prices during the fourth quarter, Houston oil field service company Baker Hughes, a GE company (BHGE) closed 2018 with a $195 million profit.
BHGE posted a $131 million profit on nearly $ 6.9 billion of revenue during the fourth quarter. The fourth quarter figures translated into earnings per share of 28 cents.
The service giant finished 2018 with a $195 million profit on $22.9 billion of revenue. The annual figures translated into earnings per share of 46 cents.
The company’s fourth quarter figures beat analyst expectations for earnings per share by a penny and beat revenue expectations by $6.9 billion.
The end-of-year results mark the first full year of earnings for BHGE following a July 2017 merger with the oil and natural gas division of General Electric.
Crude oil prices dropped by 40 percent during the fourth quarter causing pain for oil field service companies but the price of domestically produced West Texas Intermediate crude oil has since bounced back to the $54 per barrel range.
“As we look forward to 2019, our core mission as a company is unchanged — delivering productivity solutions to the oil and gas industry through differentiated technology and innovative commercial models,” CEO Lorenzo Simonelli said in a statement. “We are positioning the company to navigate a dynamic macroeconomic environment, while remaining focused on delivering for our customers and on our priorities of share, margins, and cash.”
With a history going back to 1907, BHGE now employs more than 64,000 people in 120 nations.
This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.