BHGE Reports $32M Profit

Baker Hughes, a GE company, (BHGE) has reported profit of $32 million or 6 cents per diluted share on GAAP basis for the quarter ended March 31, 2019.

Adjusted diluted earnings per share were 15 cents per share.

The result compared with $70 million profit in Q1 2018, down 55%, and also down sequentially some 76% from $131 million or 28 cents per share.

Revenue for the quarter was $5,615 million, a decline of 10%, sequentially. The decline was driven primarily by seasonality across most businesses. Turbomachinery and Process Solutions was down 27%, Digital Solutions was down 14%, and Oilfield Services was down 3%, partially offset with Oilfield Equipment up 1%.

Compared to the same quarter last year, revenue was up 4%.

Orders for the quarter were $5,693 million, down 17% sequentially and up 9% year-over-year. The sequential decrease was a result of seasonality in all product companies.

GAAP (generally accepted accounting principles) operating income for the first quarter of 2019 was $176 million. Operating income declined $206 million sequentially and increased $217 million year-over-year. Total segment operating income was $373 million for the first quarter of 2019, down 39% sequentially and up 14% year-over-year.

Depreciation and amortization for the first quarter of 2019 was $350 million.

“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, president and CEO. “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.