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How Will the International Rig Count Impact Baker Hughes?

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Revenue from international operations

In 3Q16, Baker Hughes’s (BHI) revenue share generated outside North America remained unchanged at 72%—compared to 2Q16. In comparison, Schlumberger’s (SLB) revenues from its international operations remained unchanged at 76% in 3Q16—compared to the previous quarter. Halliburton’s (HAL) revenues from international operations were 57% in 3Q16. To learn more, read Schlumberger before 4Q16: A Pre-Earnings Analysis.

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International rig count

From September to December, the international rig count fell 1%. A lower international rig count could mitigate Baker Hughes’s revenues and earnings growth in 4Q16. Baker Hughes accounts for 0.12% of the iShares Dow Jones US ETF (IYY). The energy sector makes up 7.0% of IYY. The lower international rig count can also impact FMC Technologies (FTI). It’s in a merger agreement with Technip. Read Is FMC Technologies’ Merger with Technip Almost Complete? to learn more.

Next, we’ll discuss Baker Hughes’s implied volatility.

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