OILFIELD technology company Baker Hughes said yesterday its long-term outlook remained favourable, but the near-term forecast had become less certain.
Chief executive Chad Deaton said: “Our customers will factor lower commodity prices and slower global demand growth into their budgets and a lack of credit may impact customer spending.
“In North America, the current lack of readily available commercial credit combined with increases in natural gas production in excess of demand growth will likely result in decreased gas drilling into next year.
“However, a meaningful share of our North America revenue, from our oilfield chemical and artificial-lift product lines, supports production activities and is less exposed to a decrease in natural gas drilling.
“We expect that spending outside North America will continue its expansion, although more modestly in 2009 than in recent years.
“The global oil market remains tight by historic standards despite the sharp drop in oil prices, and the energy industry remains challenged to develop adequate oil and natural gas supplies to offset declines in existing fields.”
Baker Hughes reported net income of £252.3million yesterday for the third quarter of 2008, up from £228.9million a year earlier.
Revenue for the period was £1.77billion, up 12% on the third quarter of 2007.