Baker Hughes Inc. on Wednesday reported net income for the first quarter ended March 31 of $374.7 million, or $1.17 per share, on revenue of $2.5 billion, compared with net income of $339.2 million, or 99 cents per share, on revenue of $2.1 billion for the same period in 2006.
The Houston-based oil and gas company said the increase stemmed from higher revenue from its projects in North America and continued growth in activity despite a seasonal decline in sales and activity in Russia.
"In North America, a colder-than-normal late-January and February has resulted in U.S. natural gas storage levels that, while higher than the recent five-year average, are lower than previously expected," said Chad Deaton, Baker Hughes chairman and chief executive officer. "U.S. gas-directed drilling activity appears to be sufficient to satisfy modest growth in natural gas demand in the short term but may be insufficient to offset decreases in imports from Canada and the decline in the productivity of reservoirs being developed over the longer term.
"The company's additions in North America have been tempered to more closely match our expectations for slower near-term growth and have resulted in improved margins. We will continue to monitor the North America market closely and will make additional adjustments, if necessary, while exercising care not to sacrifice our ability to respond to increased activity levels in the future."
Analysts polled by Thomson Financial expected Baker Hughes (NYSE: BHI - News) to have net income of $1.10 per share.
Published April 25, 2007 by the Houston Business Journal
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