Baker Hughes beats quarterly profit estimates on international demand
July 25 (Reuters) - Oilfield services firm Baker Hughes beat analysts' estimates for second-quarter profit on Thursday, powered by higher demand for its drilling services and equipment in international markets.
Shares of the company, which also raised its quarterly dividend, were up 2% at $36.30 in extended trade.
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The results echo those from SLB and Halliburton, as strong global demand helps the world's largest oilfield firms counter weakness in North America due to mega mergers among oil majors and lackluster natural gas prices.
Brent crude rose in the quarter on an average on OPEC+ production cut extension, expectations of strong demand and Fed rate cuts.
International rig count, an indicator of future production, was marginally up at 963 on an average in the second quarter, from a year earlier, according to Baker Hughes data.
Total revenue from Baker Hughes' international segment rose 5.4% to $2.99 billion.
Meanwhile, total revenue from its North America segment slipped 1.8% to $1.02 billion.
A slump in natural gas prices due to high inventories and lower demand forecast had prompted operators in the U.S. to rein in activity.
Baker Hughes raised its quarterly dividend by 5% to 21 cents per share.
The company reported an adjusted profit of 57 cents per share for the three months ended June 30, compared with analysts' average estimate of 49 cents, according to LSEG data.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Sriraj Kalluvila)