Baker Hughes, a GE company Announces First Quarter 2019 Results
- Orders of $5.7 billion for the quarter, down 17% sequentially and up 9% year-over-year
- Revenue of $5.6 billion for the quarter, down 10% sequentially and up 4% year-over-year
GAAP operating income of $176 million for the quarter, decreased $206 million sequentially and increased $217 million year-over-year
Adjusted operating income (a non-GAAP measure) of $273 million for the quarter, down 45% sequentially and up 20% year-over-year*
GAAP diluted earnings per share of $0.06 for the quarter which included $0.09 per share of adjusting items. Adjusted diluted earnings per share (a non-GAAP measure) were $0.15*
Cash flows used from operating activities were $(184) million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $(419) million*
*The Company presents its financial results in accordance with GAAP. However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations.
LONDON & HOUSTON (April 30, 2019) – Baker Hughes, a GE company (NYSE: BHGE) (“BHGE” or the “Company”) announced results today for the first quarter of 2019.
BHGE delivered a solid first quarter against a backdrop of stabilizing global oil and gas markets. U.S. rig count dropped slightly less than expected, and international activity remained steady. The LNG market is very active. While the speed of the recovery varies across these markets, we see our Company positioned to benefit from multiple growth drivers,” said Lorenzo Simonelli, BHGE Chairman and Chief Executive Officer.
“In the first quarter, we booked $5.7 billion in orders, driven by year-over-year growth in three of our four segments. We delivered $5.6 billion in revenue and adjusted operating income in the quarter was $273 million.
“In Oilfield Services (OFS), we saw typical seasonal declines in volume sequentially, and strong year-over-year growth across all product lines. In the quarter, we continued to execute in our core well construction product lines, and re-entered a number of markets globally by securing large, multi-year awards from customers. We remain focused on re-gaining profitable share in critical markets and improving margins.
“In Oilfield Equipment (OFE), we delivered another strong orders quarter, winning major contract awards across a number of subsea projects. Our new approach to subsea development, Subsea Connect, continues to gain traction with customers and was central in our wins with BP on their Tortue project and Beach Energy. We continue to leverage early customer engagement, modular technology and life-of-field planning to lower cost and improve cycle times.
“In summary, we have a positive outlook across a number of end markets. Strengthening international markets will have the largest positive impact on our business, while operators in North America will continually re-evaluate their spending plans. The next wave of LNG projects will be positive for us, and we continue to see encouraging signs in the offshore market,” concluded Simonelli.
BHGE’s latest line of drilling motors is helping operators drill faster and longer laterals in the Permian Basin. In the first quarter, a customer used BHGE’s Navi-Drill Duramax motor to drill 7,652 ft in 80 drilling hours, a 30% rate-of-penetration (ROP) improvement versus the offset well, saving the customer three days in rig time. The system has drilled 41 runs to date with ROP improvements averaging between 25-40% versus offset wells.
OFS’ leading drilling portfolio continues to deliver strong performance in challenging drilling environments globally. In the Gulf of Mexico, a customer deployed BHGE’s AutoTrak™ rotary steerable system to drill the longest slim hole side track in the region after an incumbent could not execute the scope of work required. In Asia Pacific, BHGE’s comprehensive drilling solution delivered a complex horizontal section for a customer in the Weiyuan Shale in under 10 days, a new record for the basin.