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18 B a k e r H u g h e s I n c o r p o r a t e d
Latin America
Latin America revenue increased 43% in 2010 compared
to 2009. Excluding BJ Services, revenue for 2010 was up 14%.
The primary drivers of the increase included increased activity
and commensurate revenue growth in the Andean, Brazil and
Southern Cone geomarkets driven by strong demand for artifi-
cial lift, directional drilling and drilling fluids products and ser-
vices, partially offset by reduced activity in the Venezuela/
Mexico geomarket.
Latin America profit before tax decreased 5% in 2010
compared to 2009. Excluding BJ Services, profit before tax
increased 17%. Improved profit before tax from the Andean
and Southern Cone geomarkets was partially offset by
decreased profit before tax from the Brazil and Venezuela/
Mexico geomarkets.
Europe/Africa/Russia Caspian
Europe/Africa/Russia Caspian revenue increased 8% in
2010 compared to 2009. Excluding BJ Services, revenue for
2010 decreased 1%. Reduced revenue from the North Africa
and Continental Europe geomarkets was partially offset by
higher revenue in the Russia, U.K., Nigeria and Norway
geomarkets, where strong demand for directional drilling
and artificial lift products and services was experienced.
Europe/Africa/Russia Caspian profit before tax decreased
43% in 2010 compared to 2009. Excluding BJ Services, profit
before tax decreased 41%. Improved profit before tax in the
Russia and Nigeria geomarkets was more than offset by
reduced profit before tax throughout the rest of the region
primarily due to lower activity in the North Africa geomarket,
higher overhead costs and lower realized pricing.
Middle East/Asia Pacific
Middle East/Asia Pacific revenue increased 16% in 2010
compared to 2009. Excluding BJ Services, revenue for 2010
was flat. Revenue increases occurred in the Saudi Arabia,
Egypt, Australasia and Southeast Asia geomarkets, driven by
higher activity benefiting our chemicals, artificial lift and com-
pletion systems products and services. These increases were
offset by decreased revenue primarily in the Middle East Gulf
and India geomarkets.
Middle East/Asia Pacific profit before tax decreased 27%
in 2010 compared to 2009. Excluding BJ Services, profit before
tax decreased 34% as improved profit before tax in the Egypt
and North Asia geomarkets was more than offset by lower
realized pricing and higher overhead costs throughout the
rest of the region.
Industrial Services and Other
Industrial Services and Other revenue increased 40% in
2010 compared to 2009. Excluding BJ Services, revenue for
2010 increased 10%. Industrial Services and Other profit
before tax increased 41% in 2010 compared to 2009.
Excluding BJ Services, profit before tax increased 14%.
2009 Compared to 2008
Year Ended
December 31,
2009 2008 Increase (decrease) % Change
Segment Revenues:
North America $ 3,165 $ 4,691 $ (1,526) (33)%
Latin America 1,094 1,089 5 –
Europe/Africa/Russia Caspian 2,774 3,209 (435) (14)%
Middle East/Asia Pacific 1,937 2,090 (153) (7)%
Industrial Services and Other 694 785 (91) (12)%
Segment revenues $ 9,664 $ 11,864 $ (2,200) (19)%
Year Ended
December 31,
2009 2008 Increase (decrease) % Change
Segment Profit Before Tax:
North America $ 201 $ 1,249 $ (1,048) (84)%
Latin America 78 196 (118) (60)%
Europe/Africa/Russia Caspian 458 629 (171) (27)%
Middle East/Asia Pacific 241 414 (173) (42)%
Industrial Services and Other 70 192 (122) (64)%
Segment profit before tax $ 1,048 $ 2,680 $ (1,632) (61)%