12 January 2014 – US services giant Baker Hughes has warned of an $80 million hit to its adjusted earnings for the fourth quarter over its force majeure in Iraq.
The Houston-based, New York-listed outfit said that it had resumed operations in Iraq’s Basra region in mid-December after declaring a force majeure a month earlier when protesters raided their offices.
“Due to the lost revenue related to this event, expenses associated with personnel movements and security measures, and other nonrecurring items, the pre-tax and after-tax profit impact from the disruption in Iraq during the fourth quarter is approximately $80 million, or $0.18 per share,” the company said.
Baker Hughes also said that its North America and Europe/Africa/Caspian regions would see profits fall quarter on quarter due to weather delays in the US and the UK North Sea.
As a result the contracting giant is forecasting earnings per share of between $0.60 and $0.62, off a Thomson Reuters I/B/E/S view of $0.82.
For the third quarter, Baker Hughes reported adjusted net income of $358 million, or $0.81 per diluted share.
The company will announce its fourth quarter results on 21 January.
*Bill Lehane, Upstreamonline
