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Baker Hughes, one of the world’s top three oil services companies, blamed supply chain constraints and inflation for disappointing third quarter earnings, but said the global oil and gas recovery was set to continue until 2022.

The company’s third-quarter net profit was $ 8 million compared to Wall Street’s expectations of $ 180 million, according to analyst estimates compiled by S&P Global Market Intelligence.

“We experienced mixed results in our segments during the quarter,” said Managing Director Lorenzo Simonelli. Oil services were “negatively affected by Hurricane Ida, cost inflation in our chemical business and delivery problems resulting from supply chain constraints,” he added.

Inflation and supply chain issues pushed Baker Hughes’ earnings down to $ 5.09 billion from $ 5.14 billion in the second quarter, even amid soaring oil and gas prices . Despite the weak earnings, free cash flow of $ 305 million in the quarter exceeded expectations by $ 204 million.

Oil services rival Halliburton on Tuesday reported a stronger quarter, saying higher prices underpinned a rebound in global oil and gas drilling activity, which had boosted profits.

Oil prices have exceeded $ 80 a barrel in recent weeks and US natural gas prices are trading at around $ 5 per million British thermal units, two multi-year highs. Producers have not restored supply quickly enough to meet growing demand as the world’s major economies have recovered faster than expected.

Simonelli said he saw “continued signs of a global economic recovery that are expected to drive growth in demand for oil and natural gas” through 2022, but that “global chip shortages, chain problems supply and energy supply constraints “threatened to slow this recovery.

The company’s shares, which have jumped nearly 30 percent this year thanks to the industry’s recovery, are down about 2 percent in pre-market.


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