financetom
Business
financetom
/
Business
/
Baker Hughes beats quarterly profit estimates on international demand
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Baker Hughes beats quarterly profit estimates on international demand
Jul 26, 2024 10:49 AM

July 26 (Reuters) - Oilfield services firm Baker Hughes ( BKR )

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 ( HAL )

, 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 ( BKR ) data.

Total revenue from Baker Hughes' ( BKR ) 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 ( BKR ), 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 ( BKR ) 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.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved