SEATTLE (Oil Monster): Houston-based energy technology firm Baker Hughes’ second quarter earnings surpassed Wall Street estimates, primarily driven by ongoing strong demand for natural gas technology.
The company reported adjusted earnings per share of 63 cents for the quarter, exceeding analysts' estimates of 56 cents. However, the total revenue recorded a marginal decline of 3% year-on-year to $6.91 billion. The slower drilling activity across key markets resulted in muted demand for oilfield equipment, it noted.
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The orders of the company’s gas technology services in Industrial & Energy Technology (IET) segment witnessed 28% surge over the previous year, thus lifting IET revenue to $3.29 billion. Baker Hughes has been focusing on this portfolio to expand its presence in the natural gas and LNG sectors.
Baker Hughes warned that North American upstream spending may likely decline in the low-double digits, while the international spending will be down in the high-single digits. Earlier, Halliburton and SLB too had warned of a possible industry slowdown.
Commenting on the results, Lorenzo Simonelli, Baker Hughes Chairman and CEO noted that the company delivered strong second-quarter results, despite a modest decline in revenue. The company remains confident in its ability to deliver solid performance in 2025. The continued IET growth would help offset weakness in more market-sensitive areas, Simonelli added.
