NEW YORK (Reuters) - Baker Hughes Inc , the
third-largest U.S.-listed oilfield services company, posted a
higher quarterly profit but warned the drilling moratorium in
the Gulf of Mexico would hurt results through the year, sending
its shares down 12 percent.
The April 20 blow-out at a BP Plc well, on which
Halliburton had performed cementing work, led to a
regulatory crackdown as the U.S. government froze deepwater
activity in the Gulf through November while it crafts new
Baker Hughes said the moratorium hurt its business on the
shelf and in deepwater by 3 cents per share during the quarter
and could reduce earnings by 8 cents to 11 cents per quarter in
the second half of the year.
Baker Hughes' estimate came in above smaller rival Smith
International, which said the moratorium would impact earnings
by 4 cents to 6 cents per share in the third quarter, and
Halliburton, which expects the moratorium to trim earnings per
share by 5 cents to 8 cents a quarter for the rest of 2010
NORTH AMERICA BOOSTS RESULTS
Both Baker Hughes and Smith International, however,
reported higher second-quarter profits, helped by strong North
American drilling activity.
The results come little over a week after oilfield services
leaders Schlumberger Ltd and Halliburton reported a
jump in quarterly profits on brisk activity on land in North
Net income at Baker Hughes rose to $93 million, or 23 cents
per share, from $87 million, or 28 cents per share, last year.
Revenue at the company, which bought smaller peer BJ
Services last year, grew 44 percent to $3.37 billion.
Baker Hughes said while performance improved in North
America, Russia and Asia Pacific over the first quarter, it
lagged in Africa and Latin America.
Lower customer spending in Latin America hurt Smith
International as well, but this was offset by a sequential
increase in land-based revenue in the United States.
Net income at the company, which agreed to sell itself to
Schlumberger, rose to $65.1 million, or 26 cents per share,
from $24.4 million, or 11 cents a share, last year. Revenue
rose 21 percent to $2.3 billion.
(Reporting by Adveith Nair, editing by Dave Zimmerman)