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Drilling activity picked up in 2022 in response to elevated oil prices but the pace remains slower than pre-pandemic levels as several energy producers prioritized shareholder payouts over production growth.
Many oilfield firms have also been facing workforce shortages, inflation and supply chain constraints.
“In 2023, the global economy is expected to experience some challenges under the weight of inflationary pressures and tightening monetary conditions,” Chief Executive Officer Lorenzo Simonelli said in a statement.
Adjusted net income stood at $381 million, or 38 cents per share, for the three months ended Dec. 31, compared with an average analyst estimate of 40 cents per share, according to Refinitiv data.
Baker Hughes restructured its business last year into two segments, one focused on oilfield equipment and services and another on industrial and energy technology. It reported $682 million in restructuring and impairment charges for 2022.
Sales in its Oilfield Services & Equipment business were up 12% year over year to $3.6 billion, while revenue in its Industrial & Energy Technology group rose 1% from the prior year to $2.3 billion.
Total company revenues of $5.9 billion also missed Wall Street estimates of $6.1 billion, according to Refinitiv data.
Still, analysts were upbeat on the firm’s adjusted EBITDA of $947 million, which beat forecasts of around $925 million.
“EBITDA outpaces expectations despite lighter revenues, with sizable book-to-bill supporting the outlook,” an analyst for Tudor, Pickering, Holt & Co wrote on Monday.
Shares were up 2.6% in premarket trading to $31.88. They are up about 15% from a year ago.
