Shares in Baker Hughes, the US oilfield services company, jumped more than 6% in early trading on Monday after it reported second-quarter earnings that comfortably exceeded Wall Street expectations. The Houston-based firm posted adjusted earnings per share of $0.62, compared with the consensus forecast of $0.55, while revenue climbed 8% year-on-year to $6.9 billion.
The standout performer was the Gas Technology segment, which saw revenue rise 12% as demand for liquefied natural gas (LNG) equipment and services remained strong. Chief Executive Lorenzo Simonelli said the company was benefiting from a 'structural upcycle' in global gas investment, with a record order backlog providing visibility into 2028.
Baker Hughes also raised its full-year revenue guidance, now expecting turnover of between $28.5 billion and $29.5 billion, up from a previous range of $27.5 billion to $28.5 billion. The upgrade reflects the company's confidence in continued spending by energy majors on LNG export terminals and offshore drilling projects.
The positive read-across lifted shares in London-listed energy stocks. BP and Shell both gained around 1.2% in early trade, while oilfield services provider Hunting PLC rose 2.5%. The FTSE 100 was broadly flat, but the FTSE 350 Oil & Gas index added 0.8%, helped by a 1.5% rise in the price of Brent crude to $82.40 a barrel.
Analysts at RBC Capital Markets described the results as 'reassuring' for the sector, noting that Baker Hughes' strong order book suggests sustained capital expenditure by oil and gas companies. 'This is a bellwether for the broader energy services industry,' they said in a note. 'UK investors with exposure to energy-focused pension funds or ETFs should take note of the underlying demand trends.'