Baker Hughes rounds out the oilfield sector’s revenue with a profit beat.
July 22 (Reuters) – Oilfield service provider Baker Hughes (BKR.O) surpassed Wall Street’s expectations for second quarter profits on Tuesday.
Baker Hughes joined US rivals Halliburton (HAL.N) and SLB (SLB.N) to warn of slowing upstream activity and spending as producers tackle weakness and volatility in commodity prices.
In North America, upstream spending is expected to decline with low multiples, Baker Hughes said Tuesday, but said international spending could fall with high single digits.
However, Big 3 oilfield services companies are focused on their resilience pockets, surviving slower, more uneven recovery, including LNG infrastructure, power grid upgrades, and data center-driven electricity demand.
The energy industry benefits from the increased demand for NATGAS, driven primarily by LNG exports and increased power consumption, as a result of higher temperatures, data centers and AI operations.
Baker Hughes is looking to leverage its Industrial and Energy Technology (IET) portfolio to drive growth and expand its presence in the natural gas and LNG sectors.
With demand from data centers accelerating rapidly, Baker Hughes said it is well positioned to “meet or exceed” its three-year target and book $1.5 billion orders on data center equipment earlier than expected.
The company’s shares rose more than 2% after the bell.
Orders in Baker Hughes’ gas technology services business rose 28% during the quarter, increasing revenues for the IET segment to $32.9 billion.
However, total revenues fell 3% from last year to $69.1 billion, with slowing drilling activities in key markets in demand for oilfield equipment and technology.
The Houston-based company recorded an adjusted earnings per share of 63 cents for the three months ended June 30th and the three months ended June 30th, according to data compiled by LSEG.
Reported by Vallari Srivastava of Bengaluru. Edited by Alan Barona
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