Baker Hughes reported continued strong growth in its industrial & energy technology business, with several major contracts for gas technology equipment and services awarded during the third quarter.

Chief executive Lorenzo Simonelli said that outside of the upstream markets, the liquefied natural gas market “remains fundamentally tight despite recent economic softness”.

“Globally, we expect 2023 LNG demand to approach 410 million tonnes per annum, or up about 2% compared to last year,” he said.

“With estimated global nameplate capacity of 490 million tpa of LNG this year, effective utilisation is expected to be over 90%, which has historically represented a tight market. As a result, the LNG project pipeline remains strong, both in the US and internationally.”

Besides the LNG and natural gas-related awards, the industrial & energy technology segment secured new energy contracts, notably in carbon capture, the US oilfield services provider said.

The segment had orders worth more than $4.3 billion, up 32% against the second quarter and 84% more than at the same point in 2022.

The segment reported revenues of $2.7 billion in the third quarter, against $2.4 billion in the preceding three months and just under $2 billion a year earlier.

Baker Hughes reported a third-quarter operating income of $346 million for industrial & energy technology, 11% more than in the second quarter of this year and 23% more than the third quarter of the 2022.

While revenue growth in the oilfield services & equipment segment was modest, it was on par with industrial & energy technology in the operating profit line.

Oilfield services & equipment reported an operating profit of $465 million, up 11% on the second quarter and a 43% rise from the third quarter of 2022.

The segment also reported revenues of almost $4 billion, up 2% against the second quarter and up 16% year on year.

The order book for the oilfield services & equipment business remained flat, at about $4.2 billion in the third quarter, but increased by 13% from a year ago.

With the robust growth in the top line in both business segments, Baker Hughes reported a total net profit of $518 million in the third quarter, compared with $410 million in the preceding three months and a net loss of $17 million in the third quarter of last year.

“While there is a growing consensus the energy transition will likely take longer and be more complex than many expected, our unique portfolio is set to benefit irrespective of the pace of development,” Simonelli said.