Houston oilfield service company Baker Hughes closed 2019 with a profit at a time when peers in the troubled sector are reporting multibillion dollar losses.
Baker Hughes reported a $128 million of net income in 2019, a 34 percent drop compared to the $195 million profit in 2018. The company’s 2019 revenue of $23.8 billion was a four percent increase over the $22.9 billion of revenue one year prior.
The financial results come at a time when a slump in demand for hydraulic fracturing services in the United States is hurting peers in the sector. Schlumberger, the largest oilfield service company in the world, reported closing 2019 with a $10.1 billion loss. Number two Halliburton closed the year with a $1.7 billion loss.
Baker Hughes exited the U.S. hydraulic fracturing business in January 2017 and has since diversified its products and services.
“As we look forward to 2020, we are clearly focused on executing our strategy and generating strong free cash flow, improving margins, and driving returns,” Baker Hughes CEO Lorenzo Simonelli said.
Looking at the company’s fourth quarter results, Baker Hughes reported $48 million of net income, a 64 percent drop compared to the fourth quarter of 2018. Baker Hughes reported $6.4 billion of revenue during the fourth quarter, a 1.4 percent increase over the $6.3 billion of revenue one year prior.
The company’s fourth quarter revenue and earnings per share of 7 cents missed Wall Street expectations by $120 million and earnings per share by 23 cents. Administrative costs, restructuring, impairments and separation costs dragged the company’s fourth quarter performance by $964 million.
With roots in Texas going back to 1907, Baker Hughes now employs more than 64,000 people in 120 nations.
Boston industrial conglomerate General Electric bought Baker Hughes in July 2017 but the Houston oilfield service company became independent again in October 2019.
This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.