Summary
Baker Hughes Co. (BKR) reported a net loss of $9 million attributable to the company for the second quarter of 2019, compared to a net loss of $19 million in the same period last year. Despite the net loss, total revenue increased by 8% year-over-year to $5.99 billion, driven by stronger performance in the Oilfield Services (OFS), Oilfield Equipment (OFE), and Turbomachinery & Process Solutions (TPS) segments. The company saw a significant increase in international rig count, which benefited the OFS segment. While the company continues to navigate industry volatility, the outlook for the long term remains positive, supported by projected growth in international activity, LNG projects, and industrial markets. Management highlighted efforts to manage costs and maintain financial flexibility, with substantial cash and cash equivalents on hand and an available credit facility. The company also continues to manage its relationship with GE, with significant agreements in place to facilitate the eventual separation and ensure ongoing collaboration.
Financial Highlights
46 data pointsKey Highlights
- 1Total revenue increased by 8% to $5.99 billion in Q2 2019 compared to Q2 2018, driven by higher activity in OFS, OFE, and TPS segments.
- 2Net loss attributable to Baker Hughes was $9 million in Q2 2019, an improvement from a $19 million net loss in Q2 2018.
- 3Oilfield Services (OFS) segment revenue grew 13% year-over-year, benefiting from increased international activity and a rising international rig count.
- 4International rig count increased by 15% year-over-year, while North American rig count decreased by 7%.
- 5Remaining Performance Obligations (RPO) stood at $20.6 billion as of June 30, 2019, indicating strong future revenue potential.
- 6The company recognized $50 million in restructuring and impairment charges in Q2 2019, down from $146 million in Q2 2018, reflecting ongoing efforts to optimize operations.
- 7GE announced its intention to separate from BHGE over time, with various agreements (Master Agreement Framework) in place to manage the ongoing relationship and facilitate the separation.