Investing.com – Baker Hughes stock (NYSE:BKR) plunged more than 6% Wednesday as Hurricane Ida, supply chain issues and pricier raw materials in the chemicals business held the company’s third-quarter sales and profits below estimates.
Record-high prices of crude were supposed to help oil services firms like Baker, but Hurricane Ida played havoc with their operations. The hurricane shut operations of several oil and has majors in the U.S. Gulf Coast and Gulf of Mexico in August and September. Some of the operations remain affected.
Along with supply chain problems, it cost Baker Hughes $30 million to $40 million during the quarter.
Rival Halliburton (NYSE:HAL) Tuesday reported a 30% jump in third-quarter revenue to $3.86 billion. This was below estimates too. Adjusted profit per share of 28 cents was higher than the 27 cents estimated by analysts.
Both manufacturing and services firms suffered during the quarter as the pandemic kept factories in China, Vietnam and other hubs shut while strong demand kept ships busy and ports clogged.
The company booked orders worth $5.4 billion during the quarter, up 5% from last year at a time when activity rose.
This was a result of higher order intake in oilfield equipment, oilfield services, and digital solutions, partially offset by a decline in turbomachinery and process solutions. Year-over-year equipment orders were down 7% and service orders were up 18%.
The U.S. industry-wide rig count jumped by 51 units over three months to 521 at the end of the third quarter, according to data the company revealed earlier.
"As we look ahead to the rest of 2021 and into 2022, we see continued signs of global economic recovery that should drive further demand growth for oil and natural gas," Chief Executive Officer Lorenzo Simonelli said.
Revenue in the third quarter rose 1% to $5.09 billion. Oilfield services, turbomachinery and process solutions, and digital solutions segments grew in volumes, partially offset by oilfield equipment. Adjusted profit per share came in at 16 cents.