(Reuters) – Oilfield technology firm Baker Hughes Co beat first-quarter profit estimates on Wednesday, boosted by higher demand for its services from oil and natural gas producers looking to cash in on a recovery in China and strong prices.
U.S. oil prices have swung from around $64 a barrel in mid-March over concerns of a banking crisis to back over $80 a barrel after OPEC+ announced a surprise production cut.
The average North America rig count for the quarter stood at 948, 12% higher than the previous year, as per Baker Hughes data.
“We continue to believe that the current environment remains unique, with a spending cycle that is more durable and less sensitive to commodity price swings, relative to prior cycles,” CEO Lorenzo Simonelli said in a statement.
Revenue from North America rose 20% to $992 million in the reported quarter.
Adjusted net income was $289 million, or 28 cents per share, for the three months ended March 31, compared with the average analyst estimate of 26 cents, according to Refinitiv data.
Baker Hughes kicks off first-quarter earnings for the oilfield services industry. Industry leader SLB is expected to report quarterly results on Friday and Halliburton Co on Tuesday.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
