Summary
Baker Hughes Company's third quarter 2019 results showed a modest increase in total revenue to $5.88 billion, up from $5.66 billion in the prior year's comparable quarter. This growth was primarily driven by increased activity in the Oilfield Services (OFS) and Oilfield Equipment (OFE) segments. Net income attributable to Baker Hughes Company was $57 million, or $0.11 per diluted share, an improvement from $13 million in Q3 2018. A significant development during the quarter was the further reduction of GE's ownership stake in Baker Hughes, falling to approximately 36.8% by the end of the period. This marks a significant step in the company's transition towards greater independence. The company also reported strong order intake, particularly in Turbomachinery & Process Solutions and Oilfield Services, with remaining performance obligations at $22.2 billion, indicating a solid future revenue pipeline.
Financial Highlights
46 data pointsKey Highlights
- 1Total revenue increased 4% year-over-year to $5.88 billion, driven by strong performance in Oilfield Services (OFS) and Oilfield Equipment (OFE).
- 2Net income attributable to Baker Hughes Company was $57 million ($0.11/share), a significant improvement from $13 million ($0.03/share) in Q3 2018.
- 3GE's ownership stake significantly reduced to approximately 36.8% as of September 30, 2019, marking a major step in the company's separation from GE.
- 4Order intake for the nine months ended September 30, 2019, increased by 18% to $20.0 billion, indicating strong future demand, particularly in TPS and OFS segments.
- 5Remaining Performance Obligations (RPO) stood at a robust $22.2 billion as of September 30, 2019.
- 6Operating cash flow for the first nine months of 2019 was $769 million, an increase from $673 million in the prior year period.
- 7The company incurred $54 million in separation and merger-related costs in Q3 2019, primarily related to ongoing activities for separation from GE.