* Expects continued activity reduction in Gulf of Mexico
* Q1 loss of 24 cents per share vs est. loss of 21 cents
* Shares fall as much as 4.3 percent
(Adds details, comments)
April 25 Baker Hughes Inc said on
Tuesday it expects revenue from North America to rise in the
current quarter from the first as oil producers drill more
onshore wells, helping the oilfield service provider make up for
a fall in demand in the Gulf of Mexico.
Oil producers are spending more on lucrative shale fields to
take advantage of oil prices stabilizing at over $50 per barrel,
while clamping down on expensive and time-consuming offshore
"Activity growth in the U.S. onshore well construction
product lines is forecast to more than offset the seasonal
decline in Canada and ongoing activity reductions in the Gulf of
Mexico," Chief Financial Officer Kimberly Ross said in a
Larger rival Halliburton Co said on Monday oil
producers were completing nearly as many wells as they were
drilling, leading to revenue and margin growth in its completion
and production unit.
Market leader Schlumberger said on Friday that it
was redeploying service capacity and technical support resources
from the Gulf of Mexico to other markets.
Shares of Baker Hughes, which reported a
bigger-than-expected loss on Tuesday, fell as much as 4.3
percent to $56.15, before paring losses to trade down
The company, which is being acquired by General Electric Co
, said quarterly revenue fell 15.3 percent to $2.26
billion in the first quarter ended March 31.
Analysts' on average had expected revenue of $2.27 billion,
according to Thomson Reuters I/B/E/S.
In contrast, Schlumberger's first quarter revenue
rose 5.7 percent and Halliburton's 1.9 percent.
Baker Hughes is much more exposed than Halliburton to
international markets, where activity and pricing for oilfield
services has remained persistently low.
About 31 percent of Baker Hughes' total revenue comes from
North America, with operations in the Gulf of Mexico account for
15 percent of its revenue from the region.
Net loss attributable to Baker Hughes narrowed to $129
million, or 30 cents per share, in the first quarter ended March
31, from $981 million, or $2.22 per share, a year earlier.
According to Thomson Reuters I/B/E/S, the company lost 24
cents per share, on an adjusted basis. Analysts' on average had
estimated a loss of 21 cents.
GE said last week the merger of its oil and gas business
with Baker Hughes remained on track to close in mid-2017.
Up to Monday's close, Baker Hughes shares had fallen 9.7
percent this year, compared to a 8.8 percent decline in
globally-traded Brent crude prices.
(Reporting by Arathy S Nair in Bengaluru; Editing by Arun