Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Oilfield firm Baker Hughes beats profit estimates on international demand, LNG bets

Published 01/23/2024, 05:08 PM
Updated 01/23/2024, 05:52 PM
© Reuters. The logo of energy services firm Baker Hughes is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo
HAL
-
BKR
-

(Reuters) -U.S. oilfield technology firm Baker Hughes beat Wall Street estimates for fourth-quarter profit on Tuesday, powered by strong demand for its services and equipment from LNG producers, as well as offshore and international markets.

The company concludes fourth-quarter reports from the world's top oilfield services providers. International demand also helped rivals SLB and Halliburton (NYSE:HAL) beat estimates amid slowing activity in the U.S. shale region.

International rig count, an indicator of future production, stood at 948 on an average in 2023, 11.4% higher than a year earlier, as per Baker Hughes data, while U.S. rig count fell 4.4% to 689.

Baker Hughes reported a 15% rise in international revenue for its oilfield services segment, while North America revenue slipped 1%.

Revenue from its industrial and energy technology segment jumped 24% to $2.88 billion.

The company has also benefited from equipment supply contracts from new LNG producing facilities as energy firms are betting on long-term demand for the super chilled commodity.

An "unprecedented surge" in LNG projects coming online from 2025 is set to add more than 250 billion cubic metres (bcm) per year of new capacity by 2030, the International Energy Agency said in October.

© Reuters. The logo of energy services firm Baker Hughes is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo

On an adjusted basis, the company posted net income of 51 cents per share for the quarter ended Dec. 31, compared with the average analysts' estimate of 48 cents, according to LSEG data.

Shares were marginally higher after the bell.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.