What To Expect From Baker Hughes’ 2Q’16 Earnings Results?
- Baker Hughes (NYSE:BHI), the world’s third largest oilfield contractor, is set to report its June quarter 2016 financial results on 28th July 2016. [1]
- Due to the production disruptions because of a wildfire in Alberta, Canada, and geo-political disturbances in Nigeria and Venezuela, WTI crude oil prices rose by more than 35% in the June quarter compared to the previous quarter. However, Baker Hughes’ stock did not improve much, despite its high sensitivity to oil prices.
- The rise in oil prices caused a slight improvement in the global rig count in the month of June. However, the overall rig count for 2Q’16 continued to remain weak both annually as well as sequentially.
- Although the commodity prices have shown signs of recovery in the June quarter, the global upstream capital expenditure is likely to remain low for the full year 2016. The lower upstream capital spend will continue to weigh heavily on the demand for rigs and further intensify pricing pressure in the oilfield services industry globally. Thus, we expect Baker Hughes’ 2Q’16 revenue to drop significantly on the back of weak drilling demand.
- Further, the company’s significant presence in the North American oil and gas markets, which have been severely impacted by the weak commodity prices, will hit the Houston-based company’s operating margins for the June quarter.
Have more questions about Baker Hughes (NYSE:BHI)? See the links below:
- How Will Baker Hughes’ Revenue Move If Crude Oil Prices Rebound To $100 Per Barrel By 2018?
- How Will Baker Hughes’ Revenue Move If Crude Oil Prices Average At $50 Per Barrel In 2018?
- What Is Baker Hughes’ Fundamental Value Based On Estimated 2016 Value?
- How Will Baker Hughes’ Revenue And EBITDA Grow Over The Next Five Years?
- How Has Baker Hughes’ Revenue And EBITDA Changed Over The Last Five Years?
- How Has Baker Hughes’ Revenue And EBITDA Composition Changed Over The Last Five Years?
- What Is Baker Hughes’ Revenue And EBITDA Breakdown?
- Baker Hughes 1Q’16 Earnings Continue To Slide As Commodity Prices Remain Depressed
- 2015 Earnings Review: A Tough Year For Baker Hughes Due To Weak Drilling Demand
- HAL-BHI Merger: Is No Action Better Than A Rejection?
Relevant Articles
- Fed Rate Hike Causes Oil Prices To Hit Their Lowest Level For The Year
- Baker Hughes Exceeds 1Q’17 Earnings Expectations; Continues To Focus On Product Innovation
- Baker Hughes To Report A Subdued Recovery In 1Q’17 Compared To Its Peers
- Baker Hughes Is On The Path To Recovery, Despite Weak 4Q’16 Earnings
- Baker Hughes’ Fourth Quarter Earnings To Witness A Rise Driven By An Improvement In Oil Prices
- Baker Hughes’ 2016 In Review: Halliburton’s Loss Is GE’s Gain
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Baker Hughes
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
Notes:- Baker Hughes Announces Second Quarter 2016 Results Conference Call, 24th June 2016, www.bakerhughes.com [↩]