Baker Hughes Announces Fourth Quarter and Annual R
Baker Hughes Announces Fourth Quarter and Annual Results
HOUSTON, Jan. 23, 2013 /PRNewswire/ -- Baker Hughes Incorporated (NYSE: BHI) announced today income from continuing operations attributable to Baker Hughes for the fourth quarter of 2012 of $211 million or $0.48 per diluted share, including an after-tax charge of $63 million ($0.14 per diluted share) for bad debt provisions in Latin America. These results compare to adjusted income from continuing operations (a non-GAAP measure) of $526 million or $1.20 per diluted share for the fourth quarter of 2011, and $308 million or $0.70 per diluted share for the third quarter of 2012. Third quarter of 2012 results included an after-tax charge of $27 million ($0.06 per diluted share) for bad debt provisions in Latin America and Europe.
Adjusted income from continuing operations for the year 2012 was $1.32 billion or $3.00 per diluted share, compared to $1.81 billion, or $4.14 per diluted share for the year 2011.
Revenue for the fourth quarter of 2012 was $5.22 billion, down 1% compared to $5.30 billion for the fourth quarter of 2011 and flat compared to $5.23 billion for the third quarter of 2012. Revenue for the year 2012 was a record $20.93 billion, up 8% compared to $19.43 billion for the year 2011.
On a GAAP basis, income from continuing operations attributable to Baker Hughes for the fourth quarter of 2012 was $211 million or $0.48 per diluted share compared to $0.76 per diluted share for the fourth quarter of 2011, and $0.60 per diluted share for the third quarter of 2012. Income from continuing operations attributable to Baker Hughes for the year 2012 was $1.28 billion or $2.90 per diluted share, compared to $3.96 per diluted share for the year 2011. Please see Table 1 for a reconciliation of GAAP to non-GAAP Financial Measures.
"In 2012 we posted record revenue, with growth coming from all operating segments," said Martin Craighead, Baker Hughes President and Chief Executive Officer. "Our international operations increased revenue by 11%, despite only a 2% rise in the international rig count during the year. We've built a strong position in many of the world's offshore markets and significantly expanded our Integrated Operations business in the Middle East. In North America, our business grew by 5%, based largely on the successful introduction of several well construction technologies, and strong demand for our production product lines in the growing unconventional market."
Craighead added, "We are very pleased with our performance in the Gulf of Mexico where our business expanded more than 30% for the year, based on a rebound in deepwater activity, share gains in drilling and wireline services, and modest improvements in price. Looking ahead, we see a favorable mix of development work building, and this will play well to our strength in completions and production."
Craighead continued, "Our fourth quarter results reflect the challenges faced by the industry as North American activity declined sharply towards the end of the year, and we continue to deal with unfavorable pricing conditions in the pressure pumping market. As a result, we experienced a decline in North America revenues and margins this quarter. The revenue declines were almost entirely offset by gains in our international business, driven by record revenues in all of our international segments during the quarter."
Craighead added, "During the quarter, our balance sheet improved, with receivables and inventories being reduced by nearly $400 million combined. Maintaining a strong balance sheet and capital discipline will remain a theme, and we intend to reduce our capital expenditures by approximately 30% in 2013."
Cash was $1.02 billion as of December 31, 2012, compared to $1.01 billion at September 30, 2012. Debt decreased by $229 million to $4.92 billion compared to the third quarter of 2012.
Capital expenditures were $714 million, depreciation and amortization expense was $406 million, and dividend payments were $66 million during the fourth quarter 2012. For the year 2012, capital expenditures were $2.87 billion, depreciation and amortization expense was $1.53 billion, and dividend payments were $263 million.
Adjusted EBITDA (a non-GAAP measure) in the fourth quarter of 2012 was $841 million, down $83 million compared to the third quarter of 2012. For the full year, Adjusted EBITDA was $3.73 billion. A reconciliation of income from continuing operations attributable to Baker Hughes to Adjusted EBITDA is provided in Table 2. Supplemental financial information for revenue and adjusted operating profit before tax (a non-GAAP measure) is provided in Tables 5a and 5b.