Baker Hughes Incorporated shares were up 1.2% in premarket deals, to $34.42, after the oil services contractor swung to a third quarter profit reporting $518 million of net income, versus a $17 million loss this time last year.
Third quarter revenue came in at $6.64 billion, versus $5.34 billion in 2022, and importantly it topped Wall Street consensus of $6.52 billion
Adjusted earnings were $0.42 per share, up from $0.26 a year earlier and above Street expectations of $0.39.
"We maintained strong orders performance in both Industrial & Energy Technology and Oilfield Services & Equipment, with large awards coming from Venture Global in Liquefied Natural Gas and Vår Energi in subsea,” CEO Lorenzo Simonelli said in a statement.
Looking ahead, Simonelli noted the impact of rising oil prices.
"Oil prices have rebounded as the combination of resilient oil demand and production cuts have tightened the market,” he said. “As a result, the oil market is likely to see inventory draws through the rest of 2023. Continued discipline from the world’s largest producers, the pace of oil demand growth in the face of economic uncertainty, and geopolitical risk will be important factors to monitor as we look into 2024."