* Transocean, Baker Hughes both short of Wall St estimates

* Recovery seen slow, even if worst now behind industry

* Baker Hughes shares drop 5.9 pct, Transocean off 1.8 pct

* Oil States expecting steady activity in Q4

* Rig maker Sembcorp beats estimates (Adds Trinidad, Oil States, Transocean upgrade; updates share movement)

By Braden Reddall

SAN FRANCISCO, Nov 4 (Reuters) - Rig contractor Transocean Ltd (RIG.N: Quote, Profile, Research) and oilfield services firm Baker Hughes Inc (BHI.N: Quote, Profile, Research) posted sharp drops in quarterly profit on Wednesday as their industry recovers slowly from the past year's slump.

Oil and gas companies, faced with commodity prices sharply down from last year, have put pressure on the companies that serve them to get costs down.

A bounce in crude prices in recent months has weakened producers' bargaining power, leading oil service companies to to predict a mild recovery next year.