Baker Hughes: Global oil and gas spending declines in 2026

Arabic - Baker Hughes has forecast a slight decline in global oil and gas companies’ spending in 2026, amid ongoing caution driven by geopolitical volatility, despite continued growth in some key markets.

The company said that increased spending in Latin America, offshore production in Africa, and onshore production in North America would partially offset reduced investments in Europe and the Middle East.

Baker Hughes noted that the impact of Middle East disruptions would remain limited but could lead to higher logistics costs and inflationary pressures at its facilities in the region during the third quarter, adding that strong demand in markets outside the Middle East would help offset these effects.

Baker Hughes confirmed it is strengthening its presence in liquefied natural gas (LNG) sectors and upgrading power grids, and plans to expand its production capacity for gas turbines and electrical generators by 2029, which could support opportunities to generate annual revenues of up to $5 billion in energy systems.

The US energy technology company Baker Hughes announced a decline in its profits during the second quarter of this year, with weak revenues despite an increase in new orders compared to the previous year.

The company’s distributable net profit for the second quarter of this year reached $681 million, or $0.68 per share, a 3% drop from the same period last year, which recorded profits of $701 million, or $0.71 per share.

Baker Hughes’ net profit, after adjusting for seasonal variations, stood at $640 million, or $0.64 per share, compared to $623 million, or $0.63 per share, in the second quarter of last year.

On the other hand, the company’s operating profit, after accounting for seasonal variations, increased by 2% in the second quarter to $1.231 billion, compared to $1.212 billion in the same period last year, exceeding the upper end of the company’s expectations.