Headline: Baker Hughes Surpasses Q3 Profit Forecasts on Robust Global Demand

Houston-based energy technology company Baker Hughes announced today that it exceeded Wall Street's third-quarter earnings expectations. The company attributed this success to strong international demand for drilling equipment and oilfield technologies. The company's success in various global markets helped offset some declines in North America.

CEO Lorenzo Simonelli expressed confidence in meeting the midpoint of the company's year-end EBITDA guidance. Baker Hughes experienced an increase in business volume due to the rush by energy companies to build new liquefied natural gas (LNG) facilities, foreseeing long-term demand for super-cooled fuel. This led to a 9% year-over-year revenue increase in the company's industrial and energy technology segment, reaching $2.95 billion.

In addition to electricity generation turbines, the company signed multiple contracts for non-LNG projects, including deals with Saudi Aramco in the Middle East.

Baker Hughes' main competitor, SLB, recently noted that natural gas projects in Asia, the Middle East, and the North Sea are expected to expand independently of OPEC+ decisions.

Internationally, Baker Hughes recorded a 4% revenue increase in the oilfield services and equipment segment. Notably, there was a remarkable 34% growth in Europe and Sub-Saharan Africa. However, oilfield services revenue saw a 6% decline in the Middle East and Asia regions, where post-pandemic drilling demand had been rising. In North America, the unit's revenue decreased by 9%.

Despite these mixed results, Baker Hughes reported a total revenue of $6.91 billion in the third quarter. However, this figure fell short of the expected $7.22 billion. Still, the company announced adjusted earnings per share of 67 cents for the quarter ending September 30, compared to the average analyst estimate of 61 cents compiled by LSEG.