Baker Hughes 2004 Annual Report Download - page 11

improved฀their฀return฀on฀capital฀compared฀
to฀2003.
In฀2004,฀Centrilift฀again฀delivered฀a฀
record฀year฀for฀revenues฀and฀profitability.฀
Strong฀oil฀and฀gas฀prices฀drove฀worldwide฀
demand฀for฀electric฀submersible฀pumps฀
(ESPs),฀while฀growth฀in฀the฀Eastern฀Hemi-
sphere฀made฀the฀largest฀contribution.฀To฀
support฀the฀growing฀business฀in฀Russia฀and฀
the฀Middle฀East,฀Centrilift฀commissioned฀
new฀ESP฀service฀centers฀in฀Western฀Siberia฀
and฀Dubai.฀The฀division฀also฀established฀
North฀American฀manufacturing฀capabilities฀
for฀its฀growing฀LifteqTM฀progressing฀cavity฀
pump฀line.
Baker฀Petrolite’s฀revenues฀increased฀
14.7%,฀with฀growth฀in฀all฀product฀lines.฀
The฀oilfield฀chemical฀business฀grew฀world-
wide฀as฀customers฀strived฀to฀optimize฀
mature฀field฀production.฀Baker฀Petrolite฀
established฀a฀venture฀with฀Sonangol,฀the฀
National฀Oil฀Company฀in฀Angola.฀The฀divi-
sion’s฀pipeline฀management฀group฀had฀
strong฀demand฀for฀its฀FLO®฀drag฀reducing฀
agents฀and฀enhanced฀its฀pipeline฀integrity฀
business,฀adding฀new฀technology฀to฀the฀
CPIGTM฀in-line฀inspection฀offering.฀Baker฀
Petrolite’s฀EXCALIBURTM฀metals฀removal฀
technology฀enabled฀refining฀customers฀to฀
process฀low-grade฀“opportunity”฀crudes,฀
and฀its฀TOLADTM฀Silver฀Shield฀fuel฀additive฀
helped฀gasoline฀marketers฀reduce฀sulfur฀in฀
fuel฀and฀avoid฀damage฀to฀vehicles.฀
Throughout฀the฀year,฀the฀division฀was฀able฀
to฀offset฀rising฀material฀costs฀through฀
improved฀manufacturing฀efficiency฀and฀
price฀increases.
INTEQ฀delivered฀solid฀performance฀
in฀2004฀with฀record฀revenues฀and฀a฀
strong฀improvement฀in฀profitability.฀
With฀industry-leading฀experience,฀the฀
AutoTrak®฀rotary฀steerable฀system฀has฀now฀
drilled฀more฀than฀10฀million฀feet.฀INTEQ฀
expanded฀its฀AutoTrak฀fleet฀with฀the฀first฀
commercial฀applications฀of฀its฀4-3/4”฀and฀
3-1/8”฀rotary฀closed฀loop฀systems.฀INTEQ฀
also฀deployed฀new฀formation฀evaluation฀
technology,฀including฀its฀Acoustic฀Proper-
ties฀eXplorerSM฀system฀and฀TesTrakSM฀forma-
tion฀pressure฀tester.฀These฀new฀Logging฀
While฀Drilling฀(LWD)฀systems฀were฀run฀in฀
conjunction฀with฀the฀AutoTrak฀system฀in฀
high-profile฀wells฀in฀the฀North฀Sea฀and฀
West฀Africa,฀and฀were฀recognized฀with฀
Spotlight฀on฀New฀Technology฀Awards฀at฀
the฀2004฀Offshore฀Technology฀Conference.
During฀2004,฀the฀drilling฀fluids฀product฀
line฀was฀separated฀from฀INTEQ฀to฀form฀a฀
stand-alone฀division,฀Baker฀Hughes฀Drilling฀
Fluids.฀The฀new฀division฀is฀focused฀on฀฀
providing฀drilling฀and฀completions฀fluids฀
and฀services,฀as฀well฀as฀drilling฀fluids฀฀
environmental฀services.฀During฀the฀year,฀
the฀division฀successfully฀launched฀its฀฀
PERFORMAXTM฀water-based฀drilling฀fluid,฀
which฀is฀designed฀to฀enhance฀drilling฀฀
performance฀while฀meeting฀strict฀environ-
mental฀requirements.฀The฀division฀also฀
demonstrated฀its฀leadership฀in฀deepwater฀
operations฀by฀providing฀SYN-TEQ®฀CF฀syn-
thetic฀emulsion฀fluids,฀fluids฀engineering฀
software,฀and฀dynamic฀kill฀drilling฀services.
Hughes฀Christensen฀had฀a฀record฀year฀
in฀revenues฀and฀profits.฀In฀2004,฀the฀divi-
sion฀set฀a฀goal฀of฀drilling฀“further,฀faster”฀
than฀competitors฀with฀each฀of฀its฀bits.฀The฀
company฀maintained฀its฀position฀as฀the฀
leader฀in฀PDC฀and฀Tricone®฀drill฀bits฀with฀
the฀introduction฀of฀new฀technology.฀New฀
Genesis®฀XT฀PDC฀bits,฀with฀enhanced฀cut-
ters฀and฀other฀design฀improvements,฀set฀
records฀for฀penetration฀rates฀and฀bit฀life฀
during฀the฀year.฀Hughes฀Christensen’s฀new฀
Mini-MXTM฀bits฀extended฀the฀performance฀
0%
4%
2%
6%
8%
10%
12%
Return฀on฀Assets
2002–2004,฀by฀Quarter
(Annualized฀Operating฀
Profit฀After฀Tax,฀Divided฀
by฀Total฀Assets)
2002฀฀฀฀฀฀฀฀฀2003฀฀฀฀฀฀฀฀2004
2004฀Annual฀Report฀฀฀฀฀7