Baker Hughes Tops Q4 Estimates Amid Strong Gas Demand
Houston, Texas - Baker Hughes reported a beat on Wall Street's expectations for its fourth-quarter earnings, boosted by surging demand for natural gas technology and services.
Despite a 5% decline in oilfield services revenue in North America and a 1% drop internationally, the company's Industrial and Energy Technology (IET) segment surged by 3%, driven by a 44% jump in gas technology equipment orders.
"Strong LNG orders and additional gas infrastructure awards propelled our IET segment to $3.5 billion in revenue," said CEO Lorenzo Simonelli.
The company's order backlog for the quarter reached $3.8 billion, supported by both LNG and other gas-related projects.
Baker Hughes' success in the gas market comes amid increased global demand and President Trump's recent pledge to guarantee LNG supplies to Europe.
For the quarter ended December 31, Baker Hughes reported an adjusted profit of 70 cents per share, exceeding analysts' consensus estimate of 63 cents.