Oil services provider Baker Hughes said its second-quarter profit more than tripled to $338 million, or 77 cents a share, from $93 million, or 23 cents a share, a year earlier as revenue surged 41% to $4.74 billion. The company cited growth in U.S. market and increasing international profit margins as catalysts behind the strong numbers.
Baker Hughes reported that revenue from North American operations, which accounts for about half of Baker Hughes' total sales, grew to $2.4 billion in the second quarter, up 59% over the second quarter of 2010, according to the Houston Chronicle. As several of its rivals have done already, Baker Hughes noted that demand for oilfield services remains robust and is outstripping supply.
Baker Hughes (BHI) said the number of wells for which it is providing three or more services has doubled over the past three quarters following completion of the company's purchase of BJ Services, the Chronicle reported.
The company pointed to the Canadian market as one weak spot during the quarter and joined the chorus of exploration and production companies and services providers to criticize the U.S. government's slow pace of new permit approvals for deep-water projects in the Gulf of Mexico. Along those lines, Baker Hughes did say it expects its Gulf market share to increase in the fourth quarter if its customers receive the permits they are expecting.