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Baker Hughes posts first quarter profit and praises technology for driving oil and gas sector growth

18th April 2014

Demand for new technology is getting stronger and stronger as the second major oil and gas technology innovator posts its quarterly review.

Baker Hughes posts first quarter profit and praises technology for driving oil and gas sector growth
"Our performance is the result of actions to optimise operational efficiency, along with increasing demand for several innovative new product offerings," - Baker Hughes chairman Martin Craighead

The chairman of Baker Hughes has praised new cutting-edge technology for 10 per cent rise in profits, but highlights bad northern hemisphere weather for slower production levels and technology purchases than expected.

"This quarter we delivered an increase in profit margins and earnings," said Martin Craighead, Baker Hughes chairman and CEO. "Our performance is the result of actions to optimise operational efficiency, along with increasing demand for several innovative new product offerings.

"The benefit of these actions can be seen in our North America operations this quarter. On an adjusted basis, this segment delivered 200 basis points of margin improvement, despite a drop in well count caused by poor weather in the Rockies and northeast United States. Outside of North America, our operations experienced the typical seasonal decline in product sales to start the year, along with severe weather conditions in the North Sea and Russia, leading to a five per cent sequential drop in revenue for our international business. However, resumption of our activity in Iraq, along with increased demand for high technology services in Africa, the Middle East, and Asia Pacific, led to a six per cent sequential increase in international adjusted operating profit.

"The demand for both innovative and integrated products and services has never been greater. We are continuing to redefine the technical limits for our customers in drilling efficiencies, production optimisation, and ultimate recovery. These factors, along with our continued focus on operating efficiency, are driving profitable growth in the company, leading to an increase in our shareholders' returns."

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