BioTech
BKR

Baker Hughes posts Q4 profit as higher oil prices spur drilling demand

Credit: REUTERS/BAKER HUGHES

Baker Hughes Co on Thursday reported an adjusted quarterly profit compared with a year-ago loss, as producers took advantage of a rise in crude prices that fueled demand for oilfield service equipment.

Updates with background on crude prices and rig counts, adds CEO comment

Jan 20 (Reuters) - Baker Hughes Co BKR.O on Thursday reported an adjusted quarterly profit compared with a year-ago loss, as producers took advantage of a rise in crude prices that fueled demand for oilfield service equipment.

Oil prices surged more than 50% last year on hopes of a global economic recovery from the COVID-19 pandemic and as OPEC+ cut supplies, even as coronavirus infections around the world continued to surge.

The higher crude prices encouraged U.S. producers to ramp up drilling activity, with the U.S. rig count rising to 586 at the end of the fourth quarter, compared with 348 at the close of the December quarter in 2020, according to Baker Hughes data.

"We believe the broader macro recovery should translate into rising energy demand for 2022 and relatively tight supplies for oil and natural gas, providing an attractive investment environment for our customers and a strong tailwind for many of our product companies," said Lorenzo Simonelli, the chief executive officer of Baker Hughes.

Adjusted net income stood at $224 million, or 25 cents per share, in the three months ended Dec. 31, compared with a loss of $50 million, or 7 cents per share, last year.

Rig counts rise as drilling activity rebounds from pandemic lowshttps://tmsnrt.rs/3no1e9K

(Reporting by Arunima Kumar in Bengaluru; Editing by Amy Caren Daniel)

((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BKR GE

Other Topics

Companies US Markets

Latest BioTech Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More