Revenue from international operations
In 4Q16, Baker Hughes’s (BHI) revenue generated outside North America fell compared to 4Q15. The fall was the highest among our selected oilfield equipment and services (or OFS) companies.
Despite the fall in its revenue share, BHI’s international segment was relatively resilient. Its revenue share fell to 59% in 4Q16, compared to 61% in 4Q15. This was because BHI’s North American revenue fell more sharply, as we discussed in the previous part of this series.
SLB’s and HAL’s international revenues
By comparison, Schlumberger’s (SLB) 4Q16 revenues from its international operations rose to 75% of its total revenue, compared to 71% a year earlier. Halliburton’s (HAL) 4Q16 revenues from its international operations fell to 55% of its total revenue, compared to 58% a year earlier.
HAL makes up 3.2% of the Guggenheim S&P 500 Equal Weight Energy ETF (RYE). The energy equipment and services industry makes up 19.3% of RYE. National Oilwell Varco’s (NOV) geographic revenue breakup isn’t yet available.
International rig count
By December 31, 2016, the international rig count had fallen 15% compared to a year earlier. From December 2016 to January 2017, the international rig count rose by four. A higher rig count is positive for OFS companies’ revenue outlook.
Next, we’ll discuss capital expenditure growth for some of the OFS companies under review.