Baker Hughes profit falls 9% as oilfield services demand remains muted

Oilfield services provider Baker Hughes Co said on Wednesday its adjusted profit fell 9% in the second quarter from the previous three months, as crude producers kept a tight lid on spending despite a recovery in oil prices. While oil demand has rebounded from the pandemic lows plumbed last year, output has remained low as shale producers have pledged to keep production flat.

Oilfield services provider Baker Hughes Co said on Wednesday its adjusted profit fell 9% in the second quarter from the previous three months, as crude producers kept a tight lid on spending despite a recovery in oil prices.

While oil demand has rebounded from the pandemic lows plumbed last year, output has remained low as shale producers have pledged to keep production flat. That has boosted prices of oil, with crude futures trading at levels last seen in 2018.

The recovery in oil demand is under threat from new strains of COVID-19, but Baker Hughes expects spending and activity levels to gain momentum through the year as the macro environment improves, Chief Executive Officer Lorenzo Simonelli said in a statement. Adjusted net income attributable to the company was $83 million, or 10 cents per share, in the quarter ended June 30, compared with $91 million, or 12 cents per share, in the first quarter.

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