HOUSTON, July 26 (Reuters) - Baker Hughes ( BKR ) cut

its outlook for spending by oil producers on Friday, citing

lower drilling activity by North American companies, joining

other oilfield service companies in warning about softness in

the region.

However, the company raised its full-year revenue and profit

estimates, banking on strong international growth and demand for

gas equipment.

Shares of the company, which

beat

analysts' estimates for second-quarter profit on Thursday,

rose 4% to $36.99.

Lukewarm demand and a wave of mergers have constrained

producer budgets in North America, with service companies

betting on international and offshore markets to offset the

weakness.

Baker Hughes ( BKR ) now expects spending by North America producers

to decline in the mid-single digits year-over year, instead of

in the low- to mid-single digits in its previous estimate.

Top service company SLB said last week that North

American growth would be lower than expected, while Halliburton

estimated full-year revenues from the region will decline by 6%

to 8% on lower activity.

Baker Hughes' ( BKR ) North American revenue will outperform the

market, Chief Executive Officer Lorenzo Simonelli said in an

earnings conference call on Friday.

The company raised the midpoint range of its full-year

revenue expectations by nearly 2% to between $27.60 billion and

$28.40 billion. It raised the estimate for its adjusted earnings

before interest tax depreciation and amortization by 5% to

between $4.40 billion and $4.65 billion.

The company also affirmed expectations for spending by

international companies to grow by high single digits over last

year, adding that it expects strong oilfield demand from Latin

America, West Africa and Middle East beyond 2024.

Baker Hughes ( BKR ) has focused on booking more orders for its gas

technology as customers delay some liquefied natural gas

projects and a US pause in the approval of applications to

export LNG.

"LNG has not gone away and we anticipate it's going to be

coming back again," Simonelli said.