Baker Hughes books loss in second quarter
- Business & Finance
Oilfield services company Baker Hughes, a GE company, recorded a net loss during the second quarter of 2018 while its revenues were up by 2 percent.
Baker Hughes, which completed its merger with GE’s Oil & Gas division in July 2017, on Friday said that its orders for the second quarter of 2017 were $6 billion, up 15% sequentially and up 9% year-over-year on a combined business basis when its combined orders amounted to $5.6 billion.
It is worth mentioning that GE recently revealed its intentions to get rid of its Baker Hughes business, just one year after acquiring it for $3 billion. This will be done over the next two to three years.
Back to the company’s 2Q performance, the revenues for the quarter were $5.5 billion, up 3% sequentially and up 2% year-over-year on a combined business basis and revenues of $5.4 billion. Year-over-year, the increase was driven by Oilfield Services, up 14%, and Digital Solutions, up 7%, and partially offset by Turbomachinery & Process Solutions which was down 13%, and Oilfield Equipment which was down 9%.
The company’s GAAP operating income of $78 million for the quarter, increased $119 million sequentially and increased $223 million year-over-year on a combined business basis.
Adjusted operating income (a non-GAAP measure) of $289 million for the quarter, up 27% sequentially and up favorably year-over-year on a combined business basis.
Finally, BHGE’s net loss for the second quarter 2018 was $19 million compared to a profit of $70 million in the first quarter of 2018. However, the company did not provide earnings for the combined business in the second quarter of 2017.
Lorenzo Simonelli, BHGE Chairman and Chief Executive Officer, said: “The macro outlook 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. Our portfolio mix positions us well for short and long-term growth as the market improves and the next wave of customer projects come into view.”
Offshore Energy Today Staff