What was the primary driver of the revenue increase in the first quarter of 2018?

The primary driver of the significant revenue increase to $5.4 billion in the first quarter of 2018 was the acquisition of Baker Hughes, which added $2.5 billion in revenue, primarily to the Oilfield Services segment. The Digital Solutions segment also contributed positively.

Why did the company report a net loss despite the revenue growth?

Despite the substantial revenue growth, Baker Hughes reported a net loss of $19 million due to significant restructuring, impairment, and merger-related costs totaling $208 million. These costs are associated with the ongoing integration of the acquired Baker Hughes business and efforts to adjust the company's cost structure.

What is the company's outlook for different geographical markets?

Baker Hughes is optimistic about continued growth in North America onshore activity but remains cautious about international markets due to commodity price volatility. Offshore project spending is also expected to be fluid, although subsea tree awards are projected to increase. The long-term outlook for Liquefied Natural Gas (LNG) is considered positive.

How is the company managing its cash and liquidity?

The company ended the quarter with $5.6 billion in cash, cash equivalents, and restricted cash. It believes that its cash on hand, cash flows from operations, and its available $3 billion revolving credit facility provide sufficient liquidity to meet its global cash needs. A substantial portion of cash is held by foreign subsidiaries, with a reinvestment strategy in active non-U.S. business operations.

BKR 10-Q Quarterly Report Q1 FY2017 — Revenue, Net Income, EPS

Summary

Baker Hughes, a GE company (BHGE) reported its first quarter 2018 results, showing a significant increase in revenue to $5.4 billion, up from $3.1 billion in the prior year, primarily driven by the acquisition of Baker Hughes. Despite the revenue growth, the company reported a net loss of $19 million for the quarter, compared to a net income of $66 million in Q1 2017. This loss was impacted by restructuring, impairment, and merger-related costs totaling $208 million. The company's operating segments showed mixed performance. Oilfield Services (OFS) revenue saw a substantial increase due to the acquisition, while Turbomachinery & Process Solutions (TPS) experienced a revenue decline. The company is optimistic about the North American onshore activity outlook but remains cautious about international markets and offshore projects due to continued oil price volatility. Overall, the company faces near-term volatility but maintains a positive long-term view on energy demand and industry complexity.

Financial Highlights

27 data points

Beta

Revenue

$3.06B

0.2% Gross Margin

Net Income

$0.00

EPS (Diluted)

$0.00

Cash & Equivalents

$1.03B

Free Cash Flow

-$346.00M

Financial Statements

Beta

Revenue	$3.06B
Cost of Revenue	$1.85B
Gross Profit	$687.00M
SG&A Expenses	$492.00M
Operating Expenses	$2.98B
Operating Income	$86.00M
Net Income	$0

Key Highlights

1Total revenue increased by 76% to $5.4 billion in Q1 2018, largely due to the acquisition of Baker Hughes.
2The company reported a net loss of $19 million in Q1 2018, a decrease from a net income of $66 million in Q1 2017.
3Restructuring, impairment, and merger-related costs amounted to $208 million in Q1 2018.
4Oilfield Services (OFS) segment revenue increased significantly due to the Baker Hughes acquisition, while Turbomachinery & Process Solutions (TPS) saw a revenue decline.
5North America rig counts increased by 19% year-over-year, indicating improving activity levels.
6The company ended the quarter with $5.6 billion in cash, cash equivalents, and restricted cash.
7Baker Hughes, a GE company, continued its integration efforts, with $46 million in merger and related costs during the quarter.

Baker Hughes Co Quarterly Report for Q1 Ended Mar 31, 2017

Summary

Financial Highlights

Key Highlights

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