Baker Hughes beats by $0.01, beats on revs (36.16)
- Reports Q2 (Jun) loss of $0.11 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of ($0.12); revenues fell 0.2% year/year to $2.4 bln vs the $2.35 bln Capital IQ Consensus.
- Revenue for the second quarter of 2017 was $2.4 billion, an increase of $142 million, or 6%, sequentially. The increase was driven by improved activity across U.S. operations, a seasonal activity uplift in the Russia Caspian region, process and pipeline business, and North Sea operations, and certain areas of activity growth internationally, such as Mexico, West Africa, and Iraq. This increase was partially offset by the seasonal spring break-up in Canada, price deterioration in the Middle East, and a large direct sale into China in the prior quarter, not repeating.
- Adjusted EBITDA was $276 million for the second quarter of 2017, a decrease of $33 million, or 11% sequentially. Adjusted EBITDA in the first quarter of 2017 included an $84-million benefit related to bad-debt recoveries in Ecuador from receiving government-backed bonds in exchange for outstanding fully reserved receivables.
- For the quarter, capital expenditures were $129 million, an increase of $42 million, or 48%, sequentially. The sequential increase in capital expenditures was mainly attributable to revenue generating assets to meet increased activity levels. Depreciation and amortization expense for the quarter was $216 million, a decline of $2 million, or 1%, sequentially.