Baker Hughes posts Q3 profit as drilling demand returns

Baker Hughes posts Q3 profit as drilling demand returns

Baker Hughes posts Q3 profit as drilling demand returns

A Baker Hughes sign is displayed outside the oil logistics company’s local office in Sherwood Park, near Edmonton, Alberta, Canada November 13, 2016. REUTERS/Chris Helgren

Oct 20 (Reuters) – Baker Hughes Co (BKR.N) reported a quarterly profit on Wednesday compared to a year-ago loss, as crude prices recovered to pre-pandemic levels, fueling drilling activity and demand for oilfield services.

Global crude prices are trading at pre-pandemic levels on the back of a demand recovery and the Organization of the Petroleum Exporting Countries, Russia and their allies’ decision to stick to their output increase schedule instead of lifting production faster due to global supply concerns. Crude prices climbed 4.5% in the quarter ended Sept. 30.

Higher prices have encouraged U.S. producers to ramp up drilling activity, with the country’s rig count rising to 521 at the end of the third quarter, compared with 470 at the close of the June quarter, according to Baker Hughes data.

“As we look ahead to the rest of 2021 and into 2022, we see continued signs of global economic recovery that should drive further demand growth for oil and natural gas,” Baker Hughes Chief Executive Officer Lorenzo Simonelli said.

Quarterly net income stood at $8 million, or 1 cent per share, compared to a loss of $170 million, or 25 cents per share, last year.

Reporting by Arunima Kumar in Bengaluru;
Editing by Vinay Dwivedi

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