Halliburton, Baker Hughes Beat Profit Estimates as International Demand Offsets Weak N. America
Halliburton Co and Baker Hughes beat analysts' estimates for second-quarter profit on Wednesday on the back of strong demand for oilfield services internationally, even as domestic activity stumbled. While oilfield drilling has seen a resurgence abroad, particularly in regions like the Middle East and Latin America, since Russia's invasion of Ukraine, weaker oil and gas prices have forced U.S. shale producers to cut oil rigs. "Growing economic uncertainty continues to drive commodity price volatility globally... Market softness in North America is expected to be more than offset
Schlumberger expects reactivation costs to squeeze margins
demand from North American shale producers after a two-year lull. Shares of the company, whose quarterly profit nearly halved due to a jump in costs, fell as much as 4.4 percent to $73.18, their lowest in nearly a year. Oilfield service providers, including Schlumberger's rival Halliburton Co, are reviving equipment they stacked during the downturn in oil prices. But bringing most oilfield fleets online comes at a cost, including expenses involved with repair and upkeep, and re-hiring of employees to man the equipment. "We will have some headwinds around one-time
GE to Merge Oil & Gas Unit with Baker Hughes
the oil industry eyes its potential to boost oil recovery. Baker Hughes, by contrast, is seen as one of the world leaders in horizontal drilling, chemicals used to frack and other services key to oil production. The new company will vault Baker Hughes's market share ahead of rival Halliburton Co, which tried and failed to buy Baker until the deal collapsed last May, and also compete heavily with Schlumberger NV, the world's largest oilfield service provider, for customers. Simonelli called Baker CEO Martin Craighead after the Halliburton deal collapsed, seeking some kind of
Technip Explores Sale; Talks with FMC Technologies
Subsea, aimed at reducing the cost of subsea oilfield exploration, a sector that has been badly hurt by the drop in the price of oil. Technip tried to do a deal with CGG SA last year, but talks fell apart when CGG rebuffed Technip's 1.47 billion euro preliminary takeover approach. Halliburton Co, the world's No. 2 oilfield services provider, is currently in the midst of securing regulatory approvals for its acquisition of smaller rival Baker Hughes Inc in a stock-and-cash $34.6 billion deal. (Reporting by Mike Stone; Additional reporting by Freya Berry, Benjamin Mallet
Schlumberger to Buy Cameron in $14.8 Bln Deal
allow a more complete solution to customers and should allow SLB to grow market share," said BMO Capital Markets analyst Daniel Boyd. "Smaller companies offering discrete products and services will likely be at a disadvantage going forward." Schlumberger's closest rivals Halliburton Co and Baker Hughes Inc agreed in November to merge in an effort to contain costs. That deal has run afoul U.S. antitrust enforcers who believe the $35 billion-merger could lead to higher prices and stifle innovation, according to Reuters sources. Whether Schlumberger's bid for
February 2024
