Soros Fund Management and Baker Hughes
Soros Fund Management added new positions in Baker Hughes Inc. (BHI), RF Micro Devices Inc. (RFMD), Devon Energy (DVN), Spansion Inc. (CODE), and Marathon Petroleum (MPC) in 1Q14. The top positions it sold include J.P. Morgan Chase & Co. (JPM), Citigroup (C), and J.C. Penney (JCP).
Soros Fund Management added a new position in Baker Hughes Inc. (BHI) that accounts for 0.67% of the fund’s 1Q 2014 portfolio.
Baker Hughes is a leading supplier of oilfield services, products, technology, and systems to the worldwide oil and natural gas industry. It also provides industrial products and services to the downstream chemicals and process and pipeline industries. Its oilfield products and services fall into one of two categories, Drilling and Evaluation or Completion and Production. Industrial Services consists primarily of its downstream chemicals as well as process and pipeline services businesses. For 2013, Baker Hughes generated revenue of $22.36 billion, an increase of $1 billion, or 5%, compared to 2012. Net income was $1.10 billion for 2013, compared to $1.31 billion for 2012.
On April 17, 2014, Baker Hughes (BHI) reported its 1Q14 earnings. The company generated recurring EPS (earnings per share) of $0.84—above consensus estimates of $0.78. EPS were up sequentially from 4Q13 EPS of $0.62 due to improved performance in both the company’s North America and International operations, as well as reduced per-share corporate expenses and reduced tax, interest, and other expenses.
Baker Hughes is part of the Big Three oilfield service companies, which also include Schlumberger (SLB), with a market cap of ~$130 billion, and Halliburton (HAL), with a market cap of ~$55 billion. These companies are also significant components of the VanEck Vectors Oil Services ETF (OIH) and the Energy Select SPDR ETF (XLE).
Market Realist published an in-depth view of the 1Q 2014 earnings and outlooks of the Big Three oilfield service companies. You can access this research at Why the Big 3 oilfield service companies are bullish on 2014.