October 20, 2021 10:30 AM, EDT

Baker Hughes Joins Halliburton in Ida-Fueled Oil Services Hit

Baker Hughes Damage caused by Hurricane Ida in Port Fourchon, La. (Luke Sharrett/Bloomberg News)

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Another disappointment to jolt the oil services sector: Baker Hughes Co. reported a third-quarter earnings stumble that included pain from Hurricane Ida and a warning of hampered growth for oil demand.

The world’s No. 2 oil field services and equipment provider said Oct. 20 that its oil services unit was hurt by supply chain snarls, cost inflation in its chemicals business and the U.S. Gulf of Mexico storm that ripped through Louisiana’s Port Fourchon two months ago. Baker Hughes posted earnings, excluding certain items, of 16 cents a share, missing the 21-cent average of analysts’ estimates for the third quarter. Its results come after Halliburton Co. reported earnings that merely met expectations, also citing struggles due to Ida.

“As we look ahead to the rest of 2021 and into 2022 showing how the hired hands of the oil patch are struggling with record costs, we see continued signs of global economic recovery that should drive further demand growth for oil and natural gas,” Baker Hughes CEO Lorenzo Simonelli said in a statement. “However, the pace of growth is being hampered by the COVID-19 delta variant, global chip shortages, supply chain issues and energy supply constraints.”

Shares fell 1.4% to $26.49 at 8:16 a.m. before the start of regular trading in New York.

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