Baker Hughes posts 2Q loss despite signs of global economic recovery

Oilfield services provider Baker Hughes has reported a loss in the second quarter of the year regardless of the company posting an increase in orders and revenues.

In its second quarter of 2021 report on Wednesday, Baker Hughes said that its orders in the quarter were $5.1 billion, up 12 per cent sequentially and up four per cent year-over-year.

Its revenues were $5.14 billion for the quarter, up eight per cent sequentially and up nine per cent year-over-year.

Baker Hughes’ GAAP operating profit for the second quarter of 2021 was $194 million, compared to a loss of $52 million in the same period last year.

The company’s net loss in the second quarter of 2021 amounted to $68 million compared to a loss of $195 million in the second quarter of 2020.

Lorenzo Simonelli, Baker Hughes chairman and chief executive officer, said: “We are pleased with our second-quarter results as we continued to generate significant free cash flow, execute on our strategy, and lead in the energy transition.

“During the quarter, Turbomachinery & Process Solutions and Oilfield Equipment delivered solid orders and operating income while Oilfield Services continued to improve margins.

“We continued to invest and collaborate in strategic areas for new energy frontiers, advancing our partnerships in hydrogen, carbon capture, utilization and storage, and clean integrated power.

“As we look ahead to the second half of 2021, we see continued signs of global economic recovery that should drive further demand growth for oil and natural gas. Although we recognize the risks presented by the variant strains of the Covid-19 virus, we expect spending and activity levels to gain momentum through the year as the macro environment improves, likely setting up the industry for stronger growth in 2022.

“We remain focused on executing our strategy as the macroeconomy improves and our customers continue on their journey to a net-zero future. We look forward to supporting our customers, advancing our strategic priorities, and delivering for our shareholders”.

When net-zero is concerned, Baker Hughes announced during the second quarter of the year that it would become a net-zero company by 2050.