HOUSTON, Jan. 20 (UPI) -- Lower oil prices since mid-2014 are expected to damage this year's finances, though progress is steady, U.S. oil services company Baker Hughes said Tuesday.
Baker Hughes said it had a record year, with full-year revenues of $24.6 billion coming in 10 percent above 2013 levels.
Chairman and Chief Executive Officer Martin Craighead said fourth quarter results only punctuated the full-year performance. With oil prices off more than half of their June values, however, Craighead said to expect challenges ahead.
While demand is holding steady, the number of rigs exploring for or producing oil is declining as company's pull back in the bear mark. Craighhead said that would "clearly" impact the revenue stream for 2015.
"We are taking proactive steps to manage the business through these challenges, and we are well positioned financially for the months ahead," he said in a statement. "Our strategy remains unchanged as we continue to focus on execution and delivering new technologies that lower the cost of well construction, optimize well production, and increase ultimate recoveries."
Year-on-year, Baker Hughes said the fourth quarter well count was 5 percent higher. Oil was priced at about $80 at the start of fourth quarter 2014, about 40 percent higher than early in Tuesday trading.
On a short-term basis, the oil service company said things were slowing down in the United States. U.S. production from shale basins is shifting markets toward the supply side, putting negative pressure on oil prices.
Last year, rival Halliburton made a move to acquire Baker Hughes. Craighead said the merger would be "efficient and effective."
Halliburton last week said it was adjusting its workforce in Texas as it works to streamline operations in the weakened market.
