News wire — Oilfield services firm Baker Hughes beat analysts’ estimates for second-quarter profit on Thursday, powered by higher demand for its drilling services and equipment in international markets.The results echo those from SLB and Halliburton, as strong global demand helps the world’s largest oilfield firms counter weakness in North America due to mega mergers among oil majors and lackluster natural gas prices.
International rig count, an indicator of future production, was marginally up at 963 on an average in the second quarter, from a year earlier, according to Baker Hughes data.
Total revenue from Baker Hughes’ international segment rose 5.4% to $2.99 billion, while total revenue from its North America segment slipped 1.8% to $1.02 billion.
A slump in natural gas prices due to high inventories and lower demand forecast had prompted operators in the U.S. to rein in activity.
Baker Hughes, in a post earnings call on Friday, said it continues to have a “positive outlook for global gas market”
“Rise in generative AI could provide upside to our current expectations for natural gas demand to increase by almost 20% between now and 2040,” CEO Lorenzo Simonelli said on the conference call.
The rapid growth of data centers fueled by generative AI is set to boost U.S. electricity consumption, prompting experts to foresee increased demand for natural gas as a reliable energy source.
Baker Hughes declared quarterly dividend of 21 cents per share, reflecting a 5% jump compared to the same quarter last year.
The company reported an adjusted profit of 57 cents per share for the three months ended June 30, compared with analysts’ average estimate of 49 cents, according to LSEG data.
Reporting by Tanay Dhumal in Bengaluru; Editing by Sriraj Kalluvila and Tasim Zahid – Reuters
