Following the disruption to its business in Iraq during the fourth quarter, Baker Hughes resumed operations by the end of December. Due to the lost revenue related to this event, expenses associated with personnel movements and security measures, and other nonrecurring items, the pretax and after-tax profit impact from the disruption in Iraq during the fourth quarter is approximately $80 million, or $0.18 per share.
In the U.S. and the North Sea, activity declined primarily due to weather delays late in the quarter. As a result, North America and Europe/Africa/Russia Caspian operating profit margins declined sequentially.
As a result of the operational items highlighted above, adjusted earnings per share (a non-GAAP financial measure) are estimated to be between $0.60 and $0.62 per share for the quarter. The estimated adjusted earnings per share exclude $29 million in after-tax severance costs, or $0.06 per share, incurred during the quarter. If not for the Iraq disruption, the estimated adjusted earnings would be between $0.78 and $0.80 per share.
During the fourth quarter Baker Hughes repurchased approximately 6.3 million shares of common stock, totaling $350 million.
Baker Hughes will discuss the final results of the fourth quarter of 2013 and the outlook for 2014 during its previously announced fourth quarter earnings conference call, which is scheduled to begin at 8:00 a.m. EST on Tuesday, January 21, 2014.
Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 60,000-plus employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources.
