Oilfield services provider Baker Hughes beats Q2 profit estimates

July 26 (Reuters) – Baker Hughes reported a stronger-than-expected second quarter as the oilfield services and energy technology company benefitted from brisk demand for LNG equipment, gas ​infrastructure and power generation projects tied to growing electricity needs.

Earnings per ‌share were 64 cents, topping analysts’ expectations compiled by LSEG of 50 cents.

Adjusted earnings before interest, taxes, depreciation and amortization, a measure of operating profitability, rose 2% to $1.23 billion, exceeding ​the high end of the the company’s guidance range.

“Looking ahead, favorable underlying ​fundamentals support our confidence in achieving the midpoint of our full-year ⁠guidance as we continue to manage through the Middle East uncertainty,” Baker Hughes ​said.

The company raised its full-year industrial and energy technology segment order outlook, reflecting ​confidence that demand for power generation and LNG equipment will remain robust.

A key theme of the quarter was a surge in new business. Orders rose 49% from a year earlier to ​a record $10.5 billion, including a record $7.1 billion in orders for its industrial ​and energy technology segment. The business’ order backlog increased 19% to an all-time high.

That helped push ‌the ⁠company’s remaining performance obligations, which measure the value of contracts signed but not delivered, to $40.1 billion including a record $37.1 billion for the industrial and energy technology segment.

It said it was raising its full-year order guidance for the business and the ​segment’s orders outlook ​under its Horizon ⁠2 growth plan to more than $45 billion.

Second-quarter revenue fell 2% from a year earlier to $6.74 billion. But higher pricing, productivity ​gains and cost-cutting helped offset inflation and supported profit margins. ​Adjusted net ⁠income increased 3% to $640 million.

Chief Executive Officer Lorenzo Simonelli said demand remained strong across data centers, gas infrastructure and upstream energy markets, helping the company overcome operational ⁠challenges in ​the Middle East.