Baker Reports Gains in Oil-Services Sales

While many oil services companies are suffering from an industrywide slump, Baker International Corp. posted a 42.5% increase in net income and a 5% boost in revenues for the second quarter of its fiscal 1985. The Orange-based oil services company attributed the gains to strong international sales and the drilling of deeper, more expensive oil and gas wells by exploration companies.

For the past four years, the oil services industry has been plagued by a downturn in domestic oil drilling brought on by a worldwide surplus of oil.

But Baker’s net income for the quarter ended March 31 was $21 million, compared to the $14.7 million reported for the same period a year ago. Revenues increased to $480.1 million from the $456.6 million reported in the second quarter of fiscal 1984.

For the first six months of the year, Baker reported a 43.7% jump in net income and a 4.3% revenue hike. Net income was $38.7 million, up from the $26.9 million reported in the first six months of fiscal 1984. Revenues increased to $929 million from the $890.8 million reported in the first half of last year.

E.H. Clark Jr., Baker’s chairman and chief executive officer, said in a statement that Baker’s increase in revenues reflects the fact that while the total number of operating oil rigs in the country has dropped, wells that are being drilled are deeper and costlier than in the past.