The global energy sector is currently undergoing significant transformation as major oilfield service companies strive to balance profitability with sustainability amid increasing pressure to reduce emissions. Recent earnings reports from Baker Hughes, Halliburton, and Schlumberger (SLB) highlight both the financial challenges they face and the initiatives they are implementing to pursue low-carbon solutions.
Baker Hughes reported revenue of $6.43 billion for the first quarter of 2025, reflecting a 13% decline from the previous quarter yet a slight year-over-year increase of $9 million. This growth was attributed to strong performance in its Industrial & Energy Technology segment, which partially mitigated the downturn in its Oilfield Services & Equipment sector. The company’s net income for the quarter was $402 million, down significantly from $1.18 billion in the prior quarter and lower than the $455 million recorded a year prior. Adjusted net income, which excludes specific items, was at $509 million—down 27% quarter-over-quarter but up 19% from 2024.
Baker Hughes has made strides in sustainable practices, aiming to reduce its Scope 1 and 2 emissions by 50% by 2030 from 2019 levels. In 2024, the company reported that it reduced these emissions by 29.3%, achieving 564,728 metric tons of CO2 equivalent. Notably, its Scope 2 emissions from purchased electricity fell by 40.6%, showcasing significant progress. Lorenzo Simonelli, Chairman and CEO, stated, “Our continued transformation initiatives and strong execution continue to drive structural margin improvement across both segments,” emphasising the operational efforts propelling the company forward.
In contrast, Halliburton's performance revealed a decline in earnings, with a net income of $204 million for the same quarter, down from $606 million a year earlier. Total revenue decreased to $5.4 billion, down from $5.8 billion in the previous year. The fall in North American revenue, primarily attributed to reduced stimulation activity, was stark—down 12% to $2.2 billion. However, international revenue showed resilience, dipping only 2% to $3.2 billion, with particular growth in Europe and Africa.
Jeff Miller, Halliburton's Chairman, President, and CEO, expressed satisfaction with the company's performance despite challenges, noting that “total company revenue of $5.4 billion and adjusted operating margin of 14.5%” indicate strong operational resilience. Halliburton aims to cut its Scope 1 and 2 emissions by 40% by 2035 and is actively investing in low-carbon technologies, including carbon capture and geothermal energy projects.
Meanwhile, SLB reported $8.49 billion in revenue, a 3% decrease compared to the previous year, while net income fell by 25% to $797 million. Despite these figures, cash flow from operations improved significantly, yielding $660 million and enabling the board to approve a quarterly dividend of $0.285 per share. CEO Olivier Le Peuch noted that “higher activity in parts of the Middle East, North Africa, Argentina and offshore U.S., along with strong growth in our data center infrastructure solutions and digital businesses in North America, were more than offset by a sharper-than-expected slowdown in Mexico.”
SLB remains committed to sustainability, targeting a 30% reduction in Scope 1 and 2 emissions by 2025 and a 50% reduction by 2030. The company reported that in 2024, it achieved a reduction of approximately 26% in its total Scope 1, 2, and 3 emissions compared to 2019, aided by the implementation of effective practices such as the Field Fuel Playbook, which encourages cleaner fuel choices among employees.
As these three major companies navigate the shifting landscape, their financial results and strategic commitments to sustainability reflect a broader trend in the energy sector towards cleaner operations. Collectively, Baker Hughes, Halliburton, and SLB are working to establish themselves as leaders in both traditional energy and emerging low-carbon technologies, positioning themselves for future growth in an evolving market.
Source: Noah Wire Services