Energy services company Baker Hughes exceeded financial analysts’ expectations for first-quarter earnings, driven by robust performance in its industrial and energy technology sector despite setbacks in Middle Eastern operations.
The company’s industrial and energy technology (IET) division saw significant growth, with orders jumping to $4.89 billion compared to $3.18 billion during the same period last year. This increase stemmed from growing electricity needs at data centers and major investments in natural gas infrastructure, liquefied natural gas projects, and power grid equipment.
Meanwhile, the company’s oilfield services and equipment operations faced headwinds, with revenues declining 7% year-over-year to $3.24 billion. This decrease resulted from the sale of its surface pressure control operations and regional instability affecting business activities.
The Middle East and Asia markets proved particularly challenging, with revenues from these regions falling 19% to $1.15 billion.
Despite elevated oil prices following infrastructure attacks and Iran’s effective blockade of the Strait of Hormuz, Baker Hughes and similar companies have not yet seen significant benefits as energy producers remain hesitant to expand drilling operations.
Industry competitor Halliburton issued a warning earlier this week that disruptions related to the Iran situation and Strait of Hormuz closure could reduce current-quarter earnings by approximately 7 to 9 cents per share, despite exceeding first-quarter projections.
Another major competitor, SLB, which reports earnings Friday, has similarly indicated potential earnings impacts of 6 to 9 cents due to operational challenges in the region.
For the quarter ending March 31, Baker Hughes reported adjusted earnings of 58 cents per share, surpassing analyst predictions of 49 cents per share based on LSEG data compilation.
Total company revenue reached $6.59 billion, exceeding anticipated figures of $6.35 billion.
