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.