Baker Hughes Shares Jump On Strong 4Q

By Houston Business Journal

Increased drilling activity helped Baker Hughes Inc. to nearly quadruple net income for the fourth quarter, pushing its shares to a new 52-week high.

The Houston-based oilfield services company on Tuesday reported net income of $335 million, or 77 cents per share, up from $84 million, or 27 cents per share, earned in the fourth quarter of 2009.

Revenue in the fourth quarter 2010 was $4.4 billion, up 82 percent from the $2.4 billion recorded in the fourth quarter of 2009.

Analysts polled by Thomson Reuters expected Baker Hughes (NYSE: BHI) to have net earnings per share of 65 cents.

⿿In North America, margins increased almost 500 basis points sequentially reflecting the ongoing strength of customer spending in unconventional oil and gas plays and price realization,⿝ Chad Deaton, chairman and CEO, said in a statement. ⿿Looking ahead, we expect the economic recovery to continue resulting in increased oil demand and support for higher oil prices and a sustained multi-year expansion of international spending. However, at the current pace, we do not expect meaningful price leverage in our international markets until late 2011.⿝

For the year, net income was $812 million, or $2.06 per share, compared with $421 million, or $1.36 per share, in 2009.

Year-end revenue was $14.4 billion, up 49 percent from revenue of $9.7 billion in 2009.

Click here to read the company's 4Q earnings press release.

Baker Hughes shares reached the new high of $62.50 earlier Tuesday before closing at $62.32 per share, up $3.82 or 6.5 percent.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/houston/news/2011/01/25/baker-hughes-4q-net-income-up-298.html?ana=thestreet

Copyright bizjournals.com 2010

More from Commodities

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern

Market Bears Have Devoured Gold Prices

Market Bears Have Devoured Gold Prices

Chevron Falls With Crude After Mizuho Analyst Touts Its Mega-Assets

Chevron Falls With Crude After Mizuho Analyst Touts Its Mega-Assets

Oil Falls as J.P. Morgan Cuts Price Forecast, Producers Ramp Up Drilling

Oil Falls as J.P. Morgan Cuts Price Forecast, Producers Ramp Up Drilling

Gold to Skyrocket as Italian Rebellion Unfolds

Gold to Skyrocket as Italian Rebellion Unfolds