Orders lift Baker Hughes profit in third quarter

Oilfield services provider Baker Hughes reported a rise in its third quarter 2019 profit as its orders grew by 35 percent when compared to the same period last year. 

According to its quarterly report on Wednesday, Baker Hughes’ orders were $7.8 billion in the third quarter 2019, up 35% year-over-year when its orders were $5.7 billion.

The company recorded revenues of $5.9 billion for the third quarter 2019, down 2% sequentially and up 4% year-over-year.

Adjusted operating income (a non-GAAP measure) was $422 million for 3Q 2019, up 17% sequentially and up 12% year-over-year driven by increased volume and productivity. It excludes adjustments totaling $125 million before tax, mainly related to restructuring charges and separation related costs.

Net income attributable to Baker Hughes was $57 million in 3Q 2019 compared to net income of $13 million in 3Q 2018.

Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer, said: “In the third quarter, we booked $7.8 billion in orders, driven by year-over-year growth in three of our four segments. We delivered $5.9 billion in revenue and adjusted operating income in the quarter was $422 million.”

Simonelli concluded: “Overall, we executed well in the third quarter, and we believe that Baker Hughes is well positioned to navigate a potentially choppy macro backdrop with a good combination of long-cycle businesses in TPS and OFE, more stable end markets within Digital Solutions, and a differentiated OFS portfolio.”

It is worth mentioning that Baker Hughes has recently completed its separation from GE after bringing General Electric Company and its affiliates’ ownership in the company to below 50 percent of the voting power of all classes of the company’s voting stock. Following the separation, the company changed its name from Baker Hughes, a GE company, to Baker Hughes Company.

Offshore Energy Today Staff

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