From Yahoo Finance: 2025-04-23 11:52:00

Baker Hughes predicts a sharp drop in global oil producer spending due to tariffs and falling crude prices, with North America expecting a low-double digit decline. International spending to ease to mid- to high-single digits. CEO Lorenzo Simonelli warns of oil market oversupply, rising tariffs, and uncertainty in Mexico affecting spending levels.

The company faces cost impacts from tariffs on imports from China, Germany, Britain, Italy, with some impact from steel and aluminum tariffs. Baker Hughes is working to increase domestic sourcing and discussing cost recovery with customers. Forecasting a $100-200 million impact on annual earnings before interest, tax, depreciation, and amortization.

Baker Hughes shares dropped 5% to $36.46 late Wednesday morning. Despite challenges, LNG technologies and equipment are expected to be a bright spot for the company, as U.S. President Trump lifted the moratorium on new LNG export permits. Key LNG customers in the Gulf Coast planning capacity expansions beyond 2030.



Read more at Yahoo Finance: Baker Hughes forecasts drop in producer spending as tariffs pinch demand