GE Oil & Gas sees income drop

HOUSTON, April 24, 2017 – GE Oil & Gas reported a 33% year-on-year fall in quarterly profits late on Friday, hitting USD 207 million. Revenue over the first three months of the year was also down.

The company recorded some USD 3 billion in revenues over the first quarter, down 9% compared with the same period last year. While GE Oil & Gas’ drilling and subsea business saw its revenues decline by 31%, it did record a 13% rise in orders.

The turbomachinery and downstream business, as well as GE’s digital solutions posted higher revenues for the first quarter of 2017. Turbomachinery and downstream orders were up by 7%, along with those of the surface unit – 6%.

Digital solutions order stood out in that it was the only division to report a decline in orders, falling by 3%. For GE Oil & Gas as a whole, the order volume was up 7% for the quarter.

Oil and gas companies across the board, ranging from upstream players to engineering majors, have thus far posted disappointing first-quarter results.

Operator Woodside Petroleum last week posted lower output and revenue. Schlumberger on Friday reported a 3% sequential drop in revenue while Saipem that day said both its revenue and profit had taken a hit.

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