Oilfield firm Baker Hughes Co beat first-quarter profit estimates on Wednesday, as stronger oil prices have supported demand for its equipment and services.
Global oil futures are currently trading around $83.12 a barrel, down about 22% from a year ago but still well above a level where firms can drill profitably. Markets have been choppy in the past month, falling to around $70 a barrel amid concerns of a banking crisis and economic jitters before rebounding on a surprise cut by OPEC+.
"While 2023 has already started off with some macro volatility, we remain optimistic on the outlook for energy services," CEO Lorenzo Simonelli said in a statement. He sees the current spending-cycle for oil and gas as "less sensitive to commodity price swings," pointing to factors such as the development of liquefied natural gas projects.
Shares of Baker Hughes were up 2.64% in pre-market trading at $30.28 each. They are flat year-to-date. Revenue from Baker's Oilfield Services & Equipment business rose 19% year-over-year, while sales in its Industrial & Energy Technology business grew by 18% over that time frame. Adjusted net income was $289 million, or 28 cents per share, for the three months ended March 31, topping Wall Street expectations of 26 centsper share, according to Refinitiv data.
That's down from earnings of 38 cents per share in the prior quarter. Baker Hughes kicks off first-quarter earnings for the oilfield services industry. SLB SLB.N, the largest firm in the sector, is expected to report quarterly results on Friday and Halliburton Co HAL.N on Tuesday.
(Reuters - Reporting by Arunima Kumar in Bengaluru and Liz Hampton in Denver; Editing by Sriraj Kalluvila and Louise Heavens)