DEVALUATION

Baker Hughes forecasts USD 25-million loss upon devaluation in Venezuela

The fall in the revenue of the oil services firm will represent some nine percent of the estimated average net income in the first quarter, Reuters reported

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EL UNIVERSAL

Thursday February 14, 2013 01:51 PM

Oil services company Baker Hughes calculated that devaluation of the Venezuelan currency from VEB 4.30 to VEB 6.30 per US dollar would unavoidably result in a USD 25 million loss this quarter, according to an annual report published on Wednesday.

The fall in the revenue of the oil services firm will represent some nine percent of the estimated average net income in the first quarter, Reuters reported.

Last Friday, the Venezuelan Government announced it would devalue its currency to bring relief to public finances. The adjustment in the foreign exchange rate entered into force this Wednesday.

Additionally, Baker Hughes' major rival, Halliburton Co. estimated that devaluation in Venezuela would lead to exchange losses amounting to some USD 30 million, around 6% of the expected revenue in the first quarter.

Translated by Jhean Cabrera

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José Vicente Rangel clearly said: "We are not conducting negotiations threatened with a gun in the head." He warned behind closed doors in the midst of the social upheaval occurred during the oil strike in 2002 and 2003. Dissenting Timoteo Zambrano answered back that no other option was available: "The thing is that otherwise, you do not negotiate."

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