Baker Hughes Posts Nearly 50 Percent YoY Increase in Orders
by Jov Onsat | Rigzone Staff
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*this article was not written by Roseland Oil & Gas
Baker Hughes has reported $10.5 billion in orders for the second quarter (Q2), up 49 percent from the same three-month period last year and 29 percent against the prior quarter, driven by the Industrial and Energy Technology (IET) segment.
Revenue fell two percent year-on-year but increased two percent quarter-on-quarter to $6.74 billion. Net profit dropped three percent year-over-year and 27 percent sequentially to $681 million. Net profit adjusted for nonrecurring items rose three percent year-on-year and 12 percent quarter-on-quarter to $640 million.
“Baker Hughes delivered another strong quarter, reflecting the breadth of our portfolio and continued momentum across data center, gas infrastructure and upstream markets”, chief executive Lorenzo Simonelli said in a statement. “Disciplined execution and our ability to effectively navigate ongoing Middle East challenges contributed to adjusted EBITDA exceeding the high end of our guidance range.
“Looking ahead, favorable underlying fundamentals support our confidence in achieving the midpoint of our full-year guidance as we continue to manage through the Middle East uncertainty.
Baker Hughes saw ‘robust demand across Power Systems and LNG, with particularly strong momentum in power generation’.
“IET delivered another exceptional quarter of orders, with record bookings doubling year-over-year to $7.1 billion and backlog increasing 19 percent to a new all-time high. The strength was driven by robust demand across Power Systems and LNG, with particularly strong momentum in power generation.
“Given broadening customer demand, a growing pipeline across industrial and energy infrastructure markets, and our decision to further expand capacity, we are raising our full-year IET order guidance and increasing our Horizon 2 IET orders outlook to more than $45 billion.”
“OFSE [the Oilfield Services and Equipment segment] delivered an impressive quarter, with EBITDA exceeding the high end of our guidance range despite a complex operating environment. Increased activity and higher product shipments late in the quarter in the Middle East, along with solid performance in North America land and Latin America, drove the upside and demonstrated the resilience and durability of our portfolio despite higher inflationary costs”.
OFSE revenue declined five percent year-on-year but increased seven percent quarter-on-quarter to $3.45 billion. “The year-over-year decrease was driven mainly by the impact of the SPC disposition and disruptions in the Middle East, offset by the benefit of FX in Latin America”, Baker Hughes said.
Segment EBITDA fell 11 percent year-on-year but rose seven percent quarter-on-quarter to $605 million.
“The sequential increase in EBITDA was a result of higher volume, price, cost-out initiatives and FX, partially offset by inflation, productivity and a change in business mix”, Baker Hughes said.
IET revenue of $3.29 billion was down two percent quarter-on-quarter and flat year-on-year due to “decreases in Gas Technology Equipment and Industrial Solutions driven by the PSI disposition, offset by increases in all other product lines”, it said
IET EBITDA of $678 million rose 16 percent year-on-year but was flat quarter-on-quarter. “The year-over-year increase in segment EBITDA was driven by price, productivity, cost-out initiatives and FX, partially offset by lower volume and inflation”, Baker Hughes said.
Current assets stood at $30.58 billion including $15.73 billion in cash and cash equivalents. Current liabilities totaled $14.6 billion including $774 million in short-term debt.
by Jov Onsat | Rigzone Staff
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas