What is the company's financial performance in 2018 compared to 2017?

In 2018, Baker Hughes generated $22.9 billion in revenue, a significant increase from $17.2 billion in 2017. This growth was primarily driven by the full year inclusion of Baker Hughes operations following the combination with GE Oil & Gas in July 2017. Total segment operating income also saw a substantial increase from $1.1 billion in 2017 to $1.8 billion in 2018.

How does Baker Hughes plan to navigate the volatile oil and gas market?

Baker Hughes is focused on its 'fullstream' offering, leveraging its broad portfolio of products and services, technological innovation, and digital solutions. The company aims to deliver value to customers by reducing costs, improving efficiency, and offering integrated solutions. Despite market volatility, the company remains optimistic about the long-term energy demand and its strategic positioning to meet future industry needs.

What were the key segment performances in 2018?

The Oilfield Services (OFS) segment was the largest contributor to revenue, significantly boosted by the full year of operations. The Digital Solutions (DS) segment also showed revenue growth. The Turbomachinery & Process Solutions (TPS) segment experienced a slight revenue decline, while the Oilfield Equipment (OFE) segment saw a marginal decrease in revenue. Profitability varied across segments, with OFS and DS showing strong growth in operating income.

BKR 10-K FY2018 Annual Report — Revenue, Net Income, EPS

Q: What is the significance of GE's ongoing separation from Baker Hughes?

GE announced its intention to separate from Baker Hughes in 2018. By the end of the year, GE's economic interest in BHGE LLC had reduced from approximately 62.5% to 50.4% through secondary offerings and unit repurchases. This separation is a strategic move to solidify commercial and technological collaborations while positioning Baker Hughes for greater independence.

Summary

Baker Hughes, a GE company (BHGE) filed its 2018 10-K on February 18, 2019, detailing its operations following the combination with GE's Oil & Gas business in July 2017. The company operates as a fullstream oilfield technology provider across four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). In 2018, BHGE generated $22.9 billion in revenue, with OFS being the largest segment. A significant development in 2018 was GE's initiation of an orderly separation from BHGE, which led to a reduction in GE's economic interest in BHGE LLC from approximately 62.5% to 50.4% through secondary offerings and unit repurchases. The company navigated a dynamic oil and gas market, with commodity prices experiencing significant volatility, particularly in the fourth quarter of 2018. Despite this, BHGE emphasized its comprehensive portfolio, technological innovation, and strategic focus on delivering cost efficiencies and productivity improvements for its customers. Key financial performance indicators showed growth in revenue compared to the prior year, driven largely by the full year inclusion of Baker Hughes operations, though segment profitability varied. The company also highlighted its commitment to environmental sustainability, setting targets for CO2 emission reductions.

Financial Highlights

47 data points

Beta

Revenue

$22.88B

0.2% Gross Margin

Net Income

$195.00M

0.0% Net Margin

EPS (Diluted)

$0.45

Total Assets

$52.44B

Cash & Equivalents

$3.72B

Free Cash Flow

$1.76B

Financial Statements

Beta

Revenue	$22.88B
Gross Profit	$3.99B
R&D Expenses	$700.00M
SG&A Expenses	$2.70B
Operating Expenses	$22.18B
Operating Income	$701.00M
Net Income	$195.00M
EPS (Basic)	$0.46
EPS (Diluted)	$0.45

Key Highlights

1Revenue for 2018 reached $22.9 billion, a substantial increase from $17.2 billion in 2017, primarily due to the full year inclusion of Baker Hughes operations following the 2017 combination with GE Oil & Gas.
2GE initiated a plan to separate from Baker Hughes, reducing its economic interest in BHGE LLC from ~62.5% to ~50.4% by year-end 2018 through equity transactions.
3The company operates across four key segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS), with OFS being the largest revenue generator.
4Despite commodity price volatility in late 2018, the company maintained a positive long-term outlook, focusing on technology, integrated solutions, and cost reduction to drive customer value.
5Total segment operating income increased significantly to $1.8 billion in 2018 from $1.1 billion in 2017, driven by strong performance in OFS and DS.
6Baker Hughes reported $21.0 billion in Remaining Performance Obligations (RPO) as of December 31, 2018, indicating significant future revenue potential.
7The company invested $700 million in Research & Development in 2018 to drive innovation and maintain a competitive edge.

Baker Hughes Co Annual Report, Year Ended Dec 31, 2018

Summary

Financial Highlights

Key Highlights

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