Baker Hughes exceeds its quarterly profit expectations on natgas demand

Baker Hughes, a U.S. oilfield equipment company, beat Wall Street's fourth-quarter profit estimates on Thursday as strong demand for natural gas products and services offset the weak sales of its drill gear in North America.

Oilfield services companies are struggling with lower demand, as extraction technology becomes more efficient and increased supplies discourage more drilling from energy companies.

Baker Hughes reported that revenue for its oilfield service segment in North America fell by 5%, while international markets saw a 1% drop.

SLB and Halliburton, two of the largest rivals, announced earlier this month that their revenue would be flat in 2025 due to customers limiting their spending and activity because of a glut.

Baker Hughes' industrial and energy technologies (IET) segment revenue increased to $3.5 billion as orders for gas technology equipment grew by 44%.

Lorenzo Simonelli, CEO of IET, said that the company had received $3.8 billion in orders during the third quarter. This was largely due to strong LNG orders as well as another award for gas infrastructure.

The Houston-based firm provides customers with compressors, turbines and valves as well as other modular systems for gas processing.

The United States will guarantee gas supplies to Europe. This is despite concerns that the growing export industry may increase gas prices for U.S. customers.

Baker Hughes reported an adjusted profit per share of 70 cents for the three-month period ended December 31, compared to analysts' expectations of 63 cents on average, according estimates compiled by LSEG. Reporting by Seher dareen and Mrinalika roy in Bengaluru, editing by Sriraj Kalluvila

(source: Reuters)