Baker Hughes reported stronger-than-expected third-quarter profits, boosted by sustained international demand for its drilling equipment and oilfield technology. The company’s adjusted profit reached US$67 per share, surpassing Wall Street’s forecast of US$61.
Chief Executive Officer Lorenzo Simonelli expressed optimism, stating, “We remain confident in achieving our full-year [earnings before interest, taxes, depreciation, and amortization] EBITDA guidance midpoint.”
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Despite robust international gains, Baker Hughes’ total third-quarter revenue stood at US$6.91 billion, falling short of Wall Street’s US$7.22 billion expectation.
International markets played a key role in offsetting weaker performance in North America, where revenue dropped 9%. Baker Hughes saw a 4% revenue increase in its oilfield services and equipment segment internationally, with notable growth of 34% in Europe and Sub-Saharan Africa. However, the Middle East and Asia experienced a 6% revenue decline in this sector, despite a rise in regional drilling post-pandemic.
The company’s industrial and energy technology segment performed well, with revenue climbing 9% to US$2.95 billion compared to the previous year. Baker Hughes has also secured several contracts in the Middle East, including projects with Saudi Aramco.
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The company’s success aligns with a broader trend among oilfield services firms benefiting from liquefied natural gas (LNG) projects, as energy companies expand LNG production in anticipation of long-term demand.
Baker Hughes has been one of ExxonMobil’s prime contractors for its operations in Guyana’s Stabroek Block. The company operates out of a supercentre facility at Land of Canaan, East Bank Demerara.
