Baker Hughes Issues Q4 Operational Update; To Buy Back Shares - Quick Facts

(RTTNews) - Oilfield services provider Baker Hughes Inc. (BHI) provided an update for the fourth quarter of 2013. Following the disruption to its business in Iraq in the fourth quarter, Baker Hughes resumed operations by December end. Due to the lost revenue related to this event, expenses associated with personnel movements and security measures, and other nonrecurring items, the pretax and after-tax profit impact from the disruption in Iraq during the fourth quarter is around $80 million, or $0.18 per share.

In the U.S. and the North Sea, activity dropped mainly due to weather delays late in the quarter. Therefore, North America and Europe/Africa/Russia Caspian operating profit margins fell sequentially.

As a result of the operational items, adjusted earnings per share are projected to lie between $0.60 and $0.62 per share for the quarter. The estimated adjusted earnings per share exclude $29 million in after-tax severance costs, or $0.06 per share, incurred during the quarter. If not for the Iraq disruption, the projected adjusted earnings would be between $0.78 and $0.80 per share.

Baker Hughes repurchased nearly 6.3 million shares, totaling $350 million, in the fourth quarter.