In the third quarter of 2021, Baker Hughes Co.’s profit missed estimates on the back of the issues in global supply chain problems.
For the July-September period, Baker Hughes’ adjusted net income was at 16 cents/share or USD141 million. It underperformed the forecasts for a result of 21 cents/share.
Revenues were also weaker than expectations at USD5.093 billion.
However, the quarter resulted in the company’s first quarterly profit since the fourth quarter of 2020 as its net income attributable was at USD8 million.
In early trading Wednesday, the company’s shares plunged by 4% to USD25.79. Year-to-date, they are up about 29%, weaker than the 62% gain in the global oil prices.
CEO Lorenzo Simonelli said that the company saw some mixed results across its product companies in the period. The oilfield services unit was heavily affected by Hurricane Ida along with the problems in supply chains which cost the company around USD30-40 million.
Earnings were also weighed down by the higher chemical costs which were not fully passed onto the customers.
According to Tudor, Pickering, Holt & Co., some of today’s uneasiness might be caused by some disappointing oilfield services and digital solutions which offset a margin beat in Baker Hughes’ Turbomachinery and Process Solutions unit.
The company’s digital solutions unit was also negatively impacted by supply chain problems related to semiconductors, boards, and displays.
