Houston, Texas — U.S. oilfield technology firm Baker Hughes and oilfield services provider Halliburton Co posted impressive second quarter profits, according to latest data on their 2023 operations.
Baker Hughes beat second quarter profit estimates, helped by strong demand for its services and equipment as exploration activities remained resilient despite lower oil prices.
On an adjusted basis, the company earned 39 cents per share in the quarter ended June 30, compared with the average analysts’ estimate of 33 cents per share, Refinitiv data showed.
Halliburton posted a 41% increase in second-quarter adjusted profit compared to the first quarter, and predicted years of growth in demand for drilling.
Driven by high oil prices, the company’s gain came in spite of a $344 million hit from the company winding down assets in Russia in response to its invasion of Ukraine.
Halliburton and rival oilfield companies have benefited this year from oil prices above $100 per barrel, up 53% from the same time last year, and around 6% higher compared to the first quarter.
Chief Executive Jeff Miller said spending by international customers was on track to hit mid-teens percentage growth, predicting “multiple years” of increased activity.
He said “political agendas and under-investment” have made it hard to address energy security issues that have pushed up global prices.
Europe is dealing with fuel shortages that are eroding support among some in business and government for a move to low carbon energy. At the same time, record high temperatures are increasing concern about the continued use of fossil fuels.
The International Energy Agency last year said for the world to reach net-zero emissions by 2050, there should be no new investments in oil, gas and coal projects.
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