Baker Hughes Incorporated (NYSE:BHI) has delivered second-quarter earnings that beat expectations despite volatile commodity prices due to global economic uncertainty.
The oil field services company said it is maintaining a “constructive outlook” for global upstream spending in 2023 despite lower oil prices in the first half of the year.
For the period to June 30, 2023, it reported revenue of $6.3 billion, up 25% from a year earlier, while adjusted diluted earnings per share jumped 254% year-over-year to $0.39, ahead of the consensus forecast of $0.33, according to Zacks Investment Research.
“We maintained our strong order momentum in Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE), specifically within Subsea & Surface Pressure Systems (SSPS),” chairman and CEO Lorenzo Simonelli said in a statement.
“We also delivered solid operating results at the higher end of our guidance in both business segments, booked almost $150 million of New Energy orders and generated approximately $620 million of free cash flow.”
Outside of the upstream markets, the company said it remains confident on the outlook for liquefied natural gas (LNG), with solid demand growth seen this year led by Europe and Asia.
“Based on the continued development of the LNG project pipeline, we still expect the market to exceed 65 million tons per annum (MTPA) of FIDs this year and should see a similar level of activity in 2024,” Simonelli added.
“We continue to see the potential for this LNG cycle to extend for several years with a pipeline of new international opportunities expanding project visibility out to 2026 and beyond."
The company’s shares traded 3% lower at $34 ahead of the market open.
Contact the author at stephen.gunnion@proactiveinvestors.com