The logo of energy services firm Baker Hughes is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren

(Reuters) -Oilfield services provider Baker Hughes on Thursday beat Wall Street estimates for third-quarter profit, driven by strength in its industrial and energy technology (IET) business.

As oilfield services firms navigate a volatile market, resilient areas like LNG infrastructure, power grid upgrades, and growing electricity demand from data centers are helping support growth.

Baker has been also leaning on its industrial and energy technology (IET) division to strengthen its footprint in the natural gas and LNG market, a strategy expected to underpin revenue growth and positioning in the energy transition.

The company said IET backlog rose 3% sequentially to a record $32.1 billion, while quarterly orders surged 44% year-on-year to $4.14 billion, reflecting growing demand for LNG and energy transition projects.

Baker Hughes expects IET revenue between $3.2 billion and $3.7 billion in the current quarter, and $12.8 billion to $13.3 billion for the full year, with annual orders seen at $13.5 billion to $14.5 billion.

"While oilfield services & equipment segment margins softened, reflecting the broader macro backdrop, IET delivered another quarter of strong performance, driving consolidated adjusted EBITDA margins higher year-over-year," said Baker Hughes CEO Lorenzo Simonelli.

Oilfield service providers are contending with subdued demand for traditional drilling and completion work as producers adopt more efficient extraction technologies and rising supplies curb the need for new wells.

Operators also remain cautious amid volatile oil prices, OPEC+ spare capacity, and trade uncertainties, particularly in North America.

The Houston-based company reported adjusted earnings of 68 cents per share for the three months ended September 30, topping analysts' average estimate of 62 cents, according to LSEG data.

Quarterly revenue of $7.01 billion also beat expectations of $6.83 billion.

Rivals SLB and Halliburton also topped third-quarter profit estimates.

(Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel)