Baker Hughes misses by $0.11, misses on revs
- Reports Q4 (Dec) loss of $0.21 per share, $0.11 worse than the Capital IQ Consensus of ($0.10); revenues fell 48.8% year/year to $3.4 mln vs the $3.49 bln Capital IQ Consensus.
- Adjusted EBITDA for 4Q15 was $376 mln, a decrease of $146 mln or 28% sequentially, and a decrease of $1.1 bln or 74% compared to4Q14.
- Free cash flow for the quarter was $436 mln. Excluding restructuring payments of $108 mln, free cash flow would have been $544 mln for the quarter.
- Co states: "Revenue for our international operations declined 5% sequentially for the quarter as seasonal year-end product sales were insufficient to offset the drop in activity. The reduction in revenue, exacerbated by an unfavorable geographical and product mix in the eastern hemisphere, resulted in a contraction of our international margins. In North America, revenue declined 17% compared to the prior quarter, driven not only by activity and price, but also by onshore pressure pumping share losses as we strive to maintain cash flow positive operations despite continuing deteriorating market conditions. Even with the steep revenue drop, margins in this geographic segment remained flat as a result of cost-saving measures...Looking ahead, we are forecasting rig activity worldwide to continue to decline throughout 2016. At current commodity prices, the global rig count could decline as much as 30% in 2016, as our customers' challenges of maximizing production, lowering their overall costs, and protecting cash flows are now more acute..