Oilfield Firm, Baker Hughes, Beats Profit Estimate on Strong Oil Prices

Emmanuel Addeh in Abuja

 Oilfield firm, Baker Hughes, has beaten first quarter profit estimates as stronger oil prices supported demand for its equipment and services.

Global oil futures are currently trading around $83.12 a barrel, down about 22 per cent from a year ago but still well above a level where firms can drill profitably.

Markets have been choppy in the past month, with the price of a barrel falling to around $70 amid concerns of a banking crisis and economic jitters before rebounding on a surprise cut by the Organisation of Petroleum Exporting Countries (OPEC).

“While 2023 has already started off with some macro volatility, we remain optimistic on the outlook for energy services,” Chief Executive, 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, according to Reuters.

The company is anticipating double-digit spending growth by upstream oil and gas companies this year, eyeing full-year revenue of between $24 billion and $26 billion, up from $21.2 billion in 2022.

Shares of Baker Hughes were up 1.4 per cent in pre-market trading at $29.90 each. They are flat year-to-date.

Revenue from Baker’s Oilfield Services & Equipment business rose 19 per cent year-over-year, while sales in its Industrial & Energy Technology business grew by 18 per cent.