Baker posts 41% leap in revenue

GLOBAL energy service giant Baker Hughes posted a jump in second-quarter revenue yesterday.

The Houston-based firm, with more than 50,000 employees in 90 countries, including about 2,000 in the Aberdeen area, said revenue was up 41% year-on-year to £2.9billion and up 5% compared with the first quarter of 2011.

The 2010 results included figures from BJ Services, acquired in 2010, however, it has taken a £43million hit in costs because of unrest in Libya, giving it a net income for the 2011 second quarter of £207million, still up significantly on £57million 12 months earlier.

Chief executive Chad Deaton said: “Our performance was solid this quarter”, with steady improvement in the group’s international profit margin. He added that the service intensity of the unconventional oil and gas plays in North America was helping the firm and would continue to do so.

Baker Hughes said Gulf of Mexico drilling had increased but the pace of permits being issued had slowed significantly, dampening growth in the region.

Last week, rival Schlumberger posted a rise in revenue from £3.5billion to £5.9billion for the three months to June 30.

Oil prices edged lower in choppy trading yesterday as the inability of the US Congress to reach agreement on raising America’s debt limit kept investors wary of risky assets.

September Brent crude fell 73 cents to $117.94 a barrel, with US crude fell 67 cents to $99.20.