Baker Hughes profit drops 9% as demand for oil services remains weak

July 21 (Reuters) – Oil services provider Baker Hughes Co (BKR.N) said on Wednesday its adjusted profit fell 9% in the second quarter from the previous three months as crude producers kept tight control over their spending despite a recovery in oil prices.

As demand for oil rebounded from pandemic lows reached last year, production remained low as shale producers pledged to keep production stable.

This has pushed up oil prices, with crude futures trading to levels not seen in 2018.

The recovery in oil demand is threatened by new strains of COVID-19, but Baker Hughes expects spending and activity levels to accelerate throughout the year as the macroeconomic environment is improving, Managing Director Lorenzo Simonelli said in a statement.

Adjusted net income attributable to the company was $ 83 million, or 10 cents per share, in the quarter ended June 30, from $ 91 million, or 12 cents per share, in the first quarter.

Report by Arunima Kumar in Bangalore; Editing by Aditya Soni

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