Oilfield services major Baker Hughes saw profits down after a ‘mixed performance’ which saw a decrease in activity in Mexico and Brazil counteract success elsewhere.
Profits dropped to $240 million for the second three months of 2013, compared to $439million the previous year.
The company admitted that the decline in business from Latin America had offset success from Russia and Africa – with a costcutting exercise now underway in the region to improve third quarter profits.
“Activity levels continued to rise across the Eastern Hemisphere based on strong demand in deepwater markets, particularly in Europe and Africa, as well as seasonal improvements in Russia,” said chief executive Martin Craighead.
“However, our gains in the East were more than offset by a sharp decline in Latin America resulting from reduced activity and demobilization costs in Brazil and Mexico. In response to these conditions, during the second quarter we began taking actions to reduce costs in our Latin America operations.
“This process should be substantially complete in the third quarter leading to increased profitability in the second half of the year.”
North American revenues grew by 3%, despite Canadian levels dropping to their lowest level in four years, thanks to improved performance from the Gulf of Mexico operations.
“Now that Canada is returning to normal activity levels, we foresee a strong rebound in operating margins in the third quarter for North America,” said Craighead.
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