Drilling technology company Baker Hughes has posted net income of $432 million for the fourth quarter of 2008, an eight percent swelling of profit for the Houston-based firm.

Company revenues reached $3.2 billion, or 16 percent more business over the same time in 2007. Net profit and net revenue for all of 2008 had both grown, and in the final three months, the company completion, production and “service-intensive” horizontal drilling businesses led the way, especially in a strong North American market.

But there were strong words on future business:

"Looking forward, the outlook for 2009 has continued to deteriorate,” chief exec Chad Deaton said in a statement citing the roll-call “economic recession, lower oil prices, “less credit” and their expected effects on customers.

Deakon said companies were prioritizing production and development over exploration. The North American rig count is down 25 percent from peak, he said, and customers were trimming budgets to “address an oversupplied gas market” in North America.

Meanwhile, Baker Hughes would still “invest in research and engineering, employee development” but change was coming with “further adjustments to our cost structure as conditions dictate."

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