Baker Hughes, the world’s third-largest oilfield services company, said last night it expected strong growth in North America as oil and gas producers turn to its new technologies to reduce drilling time and cut costs.
The company, whose services include seismic surveys that determine where oil lies under the earth’s surface and hydraulic fracturing of wells, launched 47 new products and services in the second quarter.
Chief executive Martin Craighead said: “In North America, the trend of customers spending incremental op-ex (operational expenditure) towards production-related technologies is unfolding as we expected.
“We predict strong growth in this area for the foreseeable future.”
Technologies developed in the last year or two contribute between 35-50% to the company’s revenue, Mr Craighead said.
Oil and gas companies, under increasing pressure from shareholders, are looking to increase production at lower cost, prompting oilfield service providers to develop more efficient drilling technologies.
Baker Hughes, which employs thousands of people in and around Aberdeen, said it expected operating profits to rise by 15% in the third quarter as increased drilling activity and an improving pressure pumping market lift revenue and margins in North America.
Revenue from North America increased 6% to £1.66billion, while Middle East and Asia Pacific sales jumped 18% to £672million in the quarter ended June 30.
Total revenue was up by 8% at £3.47billion, while net income attributable to Baker Hughes jumped 47% to £206.3million.