Baker Hughes on Thursday reported its first profitable quarter since oil markets crashed last year, a further sign that the industry could be recovering after a devastating 2020.
The Houston oil-field services company made $653 million in the fourth quarter compared with a $170 million loss in the third quarter of 2020 and a $48 million profit in the same period a year earlier.
Yet for the year, one in which the coronavirus pandemic decimated demand for crude, the company lost $9.9 billion after drilling work dried up. Baker Hughes had made $128 million in 2019 and $195 million in 2018.
Revenue for the quarter rose 10 percent to nearly $5.5 billion from $5 billion in the third quarter, but was still down from $6.3 billion during the same period a year earlier. Annual revenue fell 13 percent to $20.7 billion, compared with $23.8 billion a year earlier.
Oil-field service companies, which have taken the brunt of the economic fallout from the oil crash last year, are growing more optimistic about the sector’s recovery as crude prices recently climbed above $50 a barrel, allowing many U.S. oil exploration and production companies to break even on shale production. The number of operating drilling rigs nationally has risen by more than 100 since August to 373, according to the latest Baker Hughes and Enverus rig count.
“As we look ahead to 2021, we are cautiously optimistic that the global economy and oil demand will begin to recover from the impact of the global pandemic,” Baker Hughes CEO Lorenzo Simonelli said in a statement. “We believe this macro environment likely translates into a tepid investment environment for oil and gas during the first half of 2021. However, we expect spending and activity levels to gain momentum through the year as the macro environment improves, likely setting up the industry for stronger growth in 2022.”
Check back later for more on this developing story.
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January 21, 2021 at 08:40PM
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Baker Hughes reports first profitable quarter since oil crash - Houston Chronicle
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