Baker Hughes Reports Strong Third-Quarter Profit

(Reuters) – Baker Hughes beat Wall Street estimates for third-quarter profit on Tuesday, driven by sustained demand for its drilling equipment and oilfield technology in international markets.

The robust activity in several international markets has helped oilfield services companies offset some declines in North America.

> "We remain confident in achieving our full-year EBITDA guidance midpoint," said CEO Lorenzo Simonelli in a statement.

Houston-based Baker Hughes has benefitted from several liquefied natural gas projects as energy firms rush to build new LNG-producing facilities, betting on long-term demand for the super-cooled commodity.

Revenue from its industrial and energy technology segment rose 9% to $2.95 billion from a year earlier.

Baker Hughes, which makes power-generating turbines, has also inked several contracts for non-LNG projects this year in the Middle East with companies like Saudi Aramco (TADAWUL:2222).

Larger rival SLB mentioned last week that natural gas projects in Asia, the Middle East, and the North Sea are expected to grow regardless of decisions on oil production curbs by the OPEC+ producers' alliance.

Baker Hughes reported that revenue in its larger oilfield services and equipment segment rose 4% in international markets, aided by a 34% growth in Europe and Sub-Saharan Africa.

However, the company noted a decline of 6% in oilfield services revenue in the Middle East and Asia, a region that has seen increased drilling demand post-pandemic. North American revenue at the unit fell by 9%.

Total third-quarter revenue of $6.91 billion missed estimates of $7.22 billion.

Baker Hughes posted an adjusted profit of 67 cents per share for the three months ended Sept. 30, surpassing the average analyst expectation of 61 cents, according to data compiled by LSEG.