Baker Hughes, a GE company, (NYSE: BHGE) on July 20 reported a slight profit miss on weaker sales in its oilfield equipment and turbomachinery businesses, sending the company’s shares down 2.4%.

Revenue from its oilfield equipment business, which includes deepwater drilling, fell 9.4% to $617 million, missing analysts’ estimate of $648.2 million.

The Houston-based company, however, said the macro outlook for oil markets continues to be favorable.

“North American production is increasing as operators grow rig and well counts, and we are seeing signs of increasing international activity in some geomarkets,” CEO Lorenzo Simonelli said.

Overall revenue rose 2.4% to $5.55 billion, slightly below analysts’ expectations of $5.57 billion. Adjusted earnings per share were 13 cents, missing analysts' forecast by 1 cent, according to Thomson Reuters I/B/E/S.

Revenue in its oilfield services unit, which accounts for more than half of its overall sales, rose 14% year over year to about $2.9 billion, driven by stronger activity in North America, where higher oil prices prompted a surge in drilling activity.

U.S. oil production hit a record 11 million barrels per day last week, according to the U.S. Energy Information Administration.

Analysts for investment firm Tudor Pickering Holt & Co called the results “not particularly sexy or a big stock mover.”

In June, General Electric, said it would divest its 62.5% stake in Baker Hughes in the next two or three years in a bid to simplify its structure and boost shareholder returns. The conglomerate acquired the services firm in July 2017, creating the second-largest oilfield services provider by revenue.

Baker Hughes reported adjusted net income of $41 million, or 10 cents per share, in the second quarter ended June 30.

The company’s shares were down 2.4% to $31 in premarket trading.