DEPA Privatization Process Provides More Suspense

The privatization process of DEPA has met a further delay.  Privatization of Greek public gas company, which should have concluded the binding offer submission process by mid-December, has taken another postponement by the Greek agency for privatizations (TAIPED) without any official explanation.

Unofficially, pundits in Greece cite the political complications on EU regulations that this privatization has ensured due to the speculated offer by Gazprom which outstrips the competition by far, although the particulars of offers have yet to be made public.

An interesting aspect that came about recently is the intention of Sintez Group which participates through its subsidiary Negusmeft, to acquire a larger role than previously thought. Although it was seen as an outsider when compared to Gazprom, SOCAR or the Greece’s M & M Gas, Sintez’s CEO Andrei Korolev relayed to the press that his company has serious intentions and strives to be a winner.

Sintez-Negusneft is a holding of the Russian multi-billionaire Alexander Lebedev, who has a wide range of activities, especially in UK and Russia. According to the company, Sintez wants to make DEPA a global gas player, while Gazprom’s and SOCAR’s intentions as Korolev put it, will be to just monopolize the local market.

Moreover, Korolev stated that his company has a distinct advantage, which is the intention to buy both DEPA and the subsidiary DESFA which is the gas network manager. He estimates that ultimately Gazprom and SOCAR as well will fail to acquire DESFA due to EU rules of competition, thus their efforts would not constitute a full-fledged privatization process.

Another interesting aspect from Sintez point of view, is the belief that SOCAR may eventually ally with M&M gas, an assumption quite interesting judging by the fact that one of the shareholders of the Greek company, the Vardinoyannis family has developed over the years cordial relations with the leadership of Azerbaijan and the Aliyev Presidency in particular, a fact not well-knownintendified by Natural Gas Europe a few weeks ago.

That points out that the Sintez group has developed its business intelligence tactics to “feel out” the competition before venturing at the last moment to become a favorite. It’s not by coincidence that British media have talked about Alexander Lebedev’s past as a high -ranking KGB officer in London in the 1980's, whilst over the past few years he has been in a sort of a conflict with the Kremlin and Putin’s presidency. Therefore Sintez-Negusneft stance in the Greek privatization surely clashed with that of Gazprom and has a Russian political flavor as well.

Sintez’s CEO Korolev also noted on the capabilities of his company to assist DEPA into interconnecting its network with that of neighboring countries and also to expand into LNG trade. By that DEPA could become a sort of a global player and a hub for the gas commodity. At that point it is also interesting to note that Sintez operates electricity power stations in Russia and in the Balkans of 2,800 MW capacity, and gets its gas from Gazprom and in favorable terms, presenting another view of the complicated relations between the two gas companies.

In respect to DEPA’s privatization, Gazprom that came first as a favorite keeps a low profile, along with SOCAR which seems to prefer an overall delay of the competition so as to coincide with the early 2013 announcement of the Southern Corridor for the transfer of Azeri gas to Europe. In case Trans-Adriatic pipeline is selected, that will surely elevate Baku’s interest for Greece, since the pipeline would run from there to the EU.

Lastly the Greek M&M is elevating its lobbying activities within the Greek government and media world, although it has to battles the growing unpopularity of the leading Greek business families, a role which was negatively described in certain high-level reports by Reuters andStern magazine recently. Suspicion-wary Greek experts believed these attacks were related to DEPA’s privatization and aimed against the shareholders of M&M Company.

Moreover, the competition of all these companies has gripped the attention of the Athens-based diplomatic community of most major EU countries and USA which consult on a regular basis local media and politicians in order to examine what lies ahead for DEPA and how the interests of their own country conform or not with the strategies of the players involved. Up to date according to all available and reliable information, German diplomacy seems neutral in the competition , while the American is adamant in accepting a leading role for Gazprom in Greece, citing fears of geopolitical nature. Other European countries such as Italy are in favor of both Russian and Azeri gas, due to the importance of Greece as a traverse point for the commodity to the Italian market.

Neighboring countries such as Bulgaria, Serbia, seem to be favoring Gazprom either due to political reasons or due to South Stream’s project evolution prospects. Lastly the EU’s Commission seems to be divided between the Energy directory and the Competition one, in a period where crucial negotiations are underway with the main EU’s supplier, Gazprom.

In overall, judging by the reluctance of the Greek state to proceed with the privatization of DEPA, it is likely that until binding offers are concluded, upturns and surprising alliances could not be excluded. Sintez latest appearance indicates that this competition may not have a definite outcome.

Cited from http://www.naturalgaseurope.com/

May 2013

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Baker Hughes Provides Revised Regional Financial Information

HOUSTON, Oct 06, 2008 /PRNewswire via COMTEX News Network/ -- Baker Hughes Incorporated (NYSE: BHI) today is providing revised information for regional revenue and operating profit before tax for its North America and Latin America regions for the fourteen quarters from the quarter ended March 31, 2005 through the quarter ended June 30, 2008 and is identified on the attached schedules as "(revised)". The original data was released on July 17, 2008.

In this revised disclosure, revenue and operating profit before tax for Trinidad, which is supported by our U.S. Gulf Coast operations, has been reclassified from Latin America to North America. There are no changes to the total revenue or operating profit before tax as previously disclosed. The revised information is also posted on our website at http://www.bakerhughes.com/investor.

Revenue and Operating Profit Before Tax(1) by Region For the 12 Months Ended December 31, 2005 12 months 3 months ended ended 3/31/2005 6/30/2005 9/30/2005 12/31/2005 12/31/2005 -------------------------------------------------------------------------- Segment Revenue Drilling and Evaluation $839.3 $893.7 $915.0 $1,046.2 $3,694.2 Completion and Production 803.2 873.8 869.8 943.2 3,490.0 -------------------------------------------------------------------------- Oilfield Operations 1,642.5 1,767.5 1,784.8 1,989.4 7,184.2 ========================================================================== Geographic Revenue North America (revised) 730.6 769.9 779.1 861.6 3,141.2 Latin America (revised) 141.5 157.5 161.1 178.1 638.2 Europe, Africa, Russia, and the Caspian 463.6 496.3 499.2 547.5 2,006.6 Middle East, Asia Pacific 306.8 343.8 345.4 402.2 1,398.2 -------------------------------------------------------------------------- Oilfield Operations 1,642.5 1,767.5 1,784.8 1,989.4 7,184.2 Corporate and Other Corporate and other revenue 0.4 0.9 - - 1.3 -------------------------------------------------------------------------- Total revenues $1,642.9 $1,768.4 $1,784.8 $1,989.4 $7,185.5 ========================================================================== Segment Operating Profit Drilling and Evaluation $153.3 $174.2 $190.0 $232.1 $749.6 Completion and Production(2) 146.3 171.3 170.0 178.4 666.0 -------------------------------------------------------------------------- Oilfield Operations 299.6 345.5 360.0 410.5 1,415.6 ========================================================================== Geographic Operating Profit North America (revised) 149.8 160.4 169.3 197.1 676.6 Latin America (revised) 31.0 37.2 30.3 35.5 134.0 Europe, Africa, Russia, and the Caspian 73.3 86.6 92.2 97.9 350.0 Middle East, Asia Pacific 45.5 61.3 68.2 80.0 255.0 -------------------------------------------------------------------------- Oilfield Operations 299.6 345.5 360.0 410.5 1,415.6 WesternGeco 19.3 18.5 25.5 33.4 96.7 -------------------------------------------------------------------------- Total Oilfield 318.9 364.0 385.5 443.9 1,512.3 Corporate and Other Operating Profit Interest expense (18.6) (16.7) (18.8) (18.2) (72.3) Interest and dividend Income 1.9 3.3 4.9 7.9 18.0 Corporate and other (32.0) (45.2) (49.2) (52.4) (178.8) -------------------------------------------------------------------------- Corporate, net interest and Other (48.7) (58.6) (63.1) (62.7) (233.1) -------------------------------------------------------------------------- Total Operating Profit(1) $270.2 $305.4 $322.4 $381.2 $1,279.2 ==========================================================================

See "Notes to Revenue and Operating Profit Before Tax by Region" in this news release.

Revenue and Operating Profit Before Tax(1) by Region For the 12 Months Ended December 31, 2006 12 months 3 months ended ended 3/31/2006 6/30/2006(1) 9/30/2006 12/31/2006 12/31/2006(1) -------------------------------------------------------------------------- Segment Revenue Drilling and Evaluation $1,084.5 $1,118.4 $1,204.1 $1,253.7 $4,660.7 Completion and Production 977.5 1,084.9 1,105.3 1,199.0 4,366.7 -------------------------------------------------------------------------- Oilfield Operations 2,062.0 2,203.3 2,309.4 2,452.7 9,027.4 ========================================================================== Geographic Revenue North America (revised) 959.4 996.0 1,059.1 1,061.7 4,076.2 Latin America (revised) 168.9 181.0 189.6 211.5 751.0 Europe, Africa, Russia, and Caspian 557.1 605.4 637.9 689.2 2,489.6 Middle East, Asia Pacific 376.6 420.9 422.8 490.3 1,710.6 -------------------------------------------------------------------------- Oilfield Operations 2,062.0 2,203.3 2,309.4 2,452.7 9,027.4 Corporate and Other Corporate and other Revenue - - - - - -------------------------------------------------------------------------- Total revenues $2,062.0 $2,203.3 $2,309.4 $2,452.7 $9,027.4 ========================================================================== Segment Operating Profit Drilling and Evaluation(4) $277.3 $288.0 $320.7 $355.8 $1,241.8 Completion and Production 204.8 246.3 241.1 249.7 941.9 -------------------------------------------------------------------------- Oilfield Operations 482.1 534.3 561.8 605.5 2,183.7 ========================================================================== Geographic Operating Profit North America (revised) 253.3 265.8 284.5 290.9 1,094.5 Latin America (revised) 34.7 37.2 37.9 44.9 154.7 Europe, Africa, Russia, and the Caspian 116.4 129.3 142.5 148.9 537.1 Middle East, Asia Pacific 77.7 102.0 96.9 120.8 397.4 -------------------------------------------------------------------------- Oilfield Operations 482.1 534.3 561.8 605.5 2,183.7 WesternGeco(3) 47.9 10.8 - - 58.7 -------------------------------------------------------------------------- Total Oilfield 530.0 545.1 561.8 605.5 2,242.4 Corporate and Other Operating Profit Interest expense (16.5) (17.0) (18.1) (17.3) (68.9) Interest and dividend income 7.3 24.2 22.6 13.4 67.5 Charge for investigation resolution(5) - - - (46.1) (46.1) Corporate and other (41.4) (45.3) (49.0) (65.9) (201.6) -------------------------------------------------------------------------- Corporate, net interest and other (50.6) (38.1) (44.5) (115.9) (249.1) -------------------------------------------------------------------------- Total Operating Profit(1) $479.4 $507.0 $517.3 $489.6 $1,993.3 ==========================================================================

See "Notes to Revenue and Operating Profit Before Tax by Region" in this news release.

Revenue and Operating Profit Before Tax(1) by Region For the 12 Months Ended December 31, 2007 12 months 3 months ended ended 3/31/2007 6/30/2007 9/30/2007 12/31/2007 12/31/2007 -------------------------------------------------------------------------- Segment Revenue Drilling and Evaluation $1,288.5 $1,278.7 $1,356.0 $1,370.0 $5,293.2 Completion and Production 1,184.2 1,258.7 1,321.8 1,370.3 5,135.0 -------------------------------------------------------------------------- Oilfield Operations 2,472.7 2,537.4 2,677.8 2,740.3 10,428.2 ========================================================================== Geographic Revenue North America (revised) 1,095.5 1,071.4 1,140.7 1,132.8 4,440.4 Latin America (revised) 206.3 216.5 240.3 240.2 903.3 Europe, Africa, Russia, and the Caspian 709.2 765.0 799.1 803.0 3,076.3 Middle East, Asia Pacific 461.7 484.5 497.7 564.3 2,008.2 -------------------------------------------------------------------------- Oilfield Operations 2,472.7 2,537.4 2,677.8 2,740.3 10,428.2 Corporate and Other Corporate and other revenue 0.1 0.1 (0.2) - - -------------------------------------------------------------------------- Total revenues $2,472.8 $2,537.5 $2,677.6 $2,740.3 $10,428.2 ========================================================================== Segment Operating Profit Drilling and Evaluation(6) $365.1 $326.6 $357.1 $347.4 $1,396.2 Completion and Production 245.0 265.2 287.2 314.8 1,112.2 -------------------------------------------------------------------------- Oilfield Operations 610.1 591.8 644.3 662.2 2,508.4 ========================================================================== Geographic Operating Profit North America (revised) 309.9 267.7 310.1 289.9 1,177.6 Latin America (revised) 36.1 36.1 48.9 53.9 175.0 Europe, Africa, Russia, and the Caspian 157.2 179.3 170.6 178.3 685.4 Middle East, Asia Pacific 106.9 108.7 114.7 140.1 470.4 -------------------------------------------------------------------------- Oilfield Operations 610.1 591.8 644.3 662.2 2,508.4 Corporate and Other Operating Profit Interest expense (16.8) (16.2) (16.7) (16.4) (66.1) Interest and dividend income 11.5 10.7 10.5 11.1 43.8 Corporate and other (49.7) (54.5) (61.7) (63.5) (229.4) -------------------------------------------------------------------------- Corporate, net interest and other (55.0) (60.0) (67.9) (68.8) (251.7) -------------------------------------------------------------------------- Total Operating Profit(1) $555.1 $531.8 $576.4 $593.4 $2,256.7 ==========================================================================

See "Notes to Revenue and Operating Profit Before Tax by Region" in this news release.

Revenue and Operating Profit Before Tax(1) by Region For the 6 Months ended June 30, 2008 3 months ended 3/31/2008 6/30/2008 ----------------------------------------------------------------- Segment Revenue Drilling and Evaluation $1,390.9 $1,527.1 Completion and Production 1,279.5 1,470.4 ----------------------------------------------------------------- Oilfield Operations 2,670.4 2,997.5 ================================================================= Geographic Revenue North America (revised) 1,177.0 1,278.4 Latin America (revised) 234.6 266.5 Europe, Africa, Russia, and the Caspian 762.4 905.4 Middle East, Asia Pacific 496.4 547.2 ----------------------------------------------------------------- Oilfield Operations 2,670.4 2,997.5 Corporate and Other Corporate and other revenue - - ----------------------------------------------------------------- Total revenues $2,670.4 $2,997.5 ================================================================= Segment Operating Profit Drilling and Evaluation $349.5 $366.9 Completion and Production 263.1 322.6 ----------------------------------------------------------------- Oilfield Operations 612.6 689.5 ================================================================= Geographic Operating Profit North America (revised) 316.3 325.8 Latin America (revised) 45.4 43.8 Europe, Africa, Russia, and the Caspian 149.3 212.4 Middle East, Asia Pacific 101.6 107.5 ----------------------------------------------------------------- Oilfield Operations 612.6 689.5 Corporate and Other Operating Profit Litigation settlement(8) - (62.0) Gain on sale of product line(7) 28.2 - Interest expense (15.7) (17.1) Interest and dividend income 8.0 4.2 Corporate and other (63.9) (63.7) ----------------------------------------------------------------- Corporate, net interest and other (43.4) (138.6) ----------------------------------------------------------------- Total Operating Profit(1) $569.2 $550.9 =================================================================

See "Notes to Revenue and Operating Profit Before Tax by Region" in this news release.

Notes to Revenue and Operating Profit Before Tax by Region

1 - Operating profit before tax is a non-GAAP measures comprised of income from continuing operations excluding the impact of certain identified non-operational items. The company believes that operating profit is useful to investors because it is a consistent measure of the underlying results of the company's business. Furthermore, management uses operating profit internally as a measure of the performance of the company's operations. Income from continuing operations before tax is reconciled to operating profit before tax in the table below. Reconciliation of GAAP and operating profits for historical periods can be found on the company's website at http://www.bakerhughes.com/investor.

Reconciliation of GAAP and Operating Profit Before Tax ------------------------------------------------------------------------- UNAUDITED for the three for the twelve (In millions except earnings months ended months ended per share) June 30, 2006 December 31, 2006 ------------------------------------------------------------------------- Income from continuing operations (GAAP) $2,250.5 $3,736.8 Less non-operational items: Gain on sale of interest in WesternGeco (1,743.5) (1,743.5) ------------------------------------------------------------------------- Operating results, excluding the impact of Non-operational items $507.0 $1,993.3 =========================================================================

The non-operational item in the second quarter of 2006 and the year ended December 31, 2006 related to the pre-tax gain of $1,743.5 million ($1,035.2 million after tax) from the sale of our 30% interest in WesternGeco, our seismic joint venture with Schlumberger, to Schlumberger on April 28, 2006 for $2.4 billion in cash.

There were no non-operational items in any other period between Quarter 1 2005 and Quarter 2 2008.

2 - Quarter 4 2005 results for Completion and Production include a $5.1 million write-off of in-process research and development associated with the acquisition of the remaining interest in QuantX. The impact on the region operating profit was: North America: $2.1 million; Europe Africa Russia and the Caspian: $3.0 million.

3 - Our 30% minority interest in WesternGeco was sold to Schlumberger on April 28, 2006.

4 - Fourth quarter 2006 results were favorably impacted by a change in accounting procedures related to certain inventory of our Baker Atlas division. The pretax impact of this change was a $21.2 million reduction to cost of services and rentals. The full amount is reflected in Drilling and Evaluation operating profit. The impact on the region operating profit was: North America: $7.5 million; Latin America: $2.6 million; Europe Africa Russia and the Caspian: $6.4 million; Middle East, Asia Pacific: $4.7 million.

5 - Fourth quarter 2006 results included a financial charge of approximately $46 million before tax ($38.5 million after tax or approximately $0.12 per diluted share) associated with the resolution of the investigations by the Securities and Exchange Commission and Department of Justice into activities in Angola, Kazakhstan and Nigeria.

6 - 2007 results were favorably impacted by an increase in the depreciable lives of certain assets of our Baker Atlas division. The pretax impact of this change was approximately $6.0 million reduction to cost of services and rentals per quarter.

7 - Profit before tax includes a gain of $28.2 million (approximately $18.4 million after tax or $0.06 per diluted share) for the sale of the Completion and Production segment's Surface Safety Systems ("SSS") product line in February 2008.

8 - Profit before tax includes a net charge of $62.0 million ($40.3 million after-tax or $0.13 per diluted share) relating to the settlement of litigation with ReedHycalog in May 2008.

Baker Hughes provides reservoir consulting, drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry.

Contact:

Gary R. Flaharty (713) 439-8039

H. Gene Shiels (713) 439-8822

SOURCE Baker Hughes Incorporated

http://www.bakerhughes.com

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