Early Access

10-QPeriod: Q3 FY2020

Baker Hughes Co Quarterly Report for Q3 Ended Sep 30, 2020

Filed October 23, 2020For Securities:BKR

Summary

Baker Hughes Company reported a net loss attributable to stockholders of $170 million, or $0.25 per share, for the third quarter of 2020, a significant decline compared to a net income of $57 million, or $0.11 per share, in the same period last year. This downturn was largely driven by a substantial goodwill impairment charge of $14.77 billion recorded in the first quarter of 2020, alongside ongoing impacts from the challenging oil and gas market environment influenced by the COVID-19 pandemic and price volatility. Despite the net loss, the company's revenue for the third quarter of 2020 was $5.05 billion, a decrease from $5.88 billion in the prior year's third quarter, primarily due to lower volumes in the Oilfield Services (OFS) and Digital Solutions (DS) segments. However, the Turbomachinery & Process Solutions (TPS) segment showed strength with revenue growth driven by increased equipment volume. The company maintained a strong liquidity position with $4.1 billion in cash and cash equivalents and continued to manage its operational costs and capital expenditures conservatively.

Financial Highlights

42 data points
Beta

Revenue

$5.05B

Net Income

-$170.00M

-0.0% Net Margin

EPS (Diluted)

$-0.25

Total Assets

$37.34B

Cash & Equivalents

$4.06B

Free Cash Flow

$219.00M

Financial Statements
Beta
Revenue$5.05B
SG&A Expenses$565.00M
Operating Expenses$5.10B
Operating Income-$49.00M
Net Income-$170.00M
EPS (Diluted)$-0.25

Key Highlights

  • 1Net loss attributable to Baker Hughes Company of $170 million ($0.25 per share) for Q3 2020, compared to a net income of $57 million ($0.11 per share) for Q3 2019.
  • 2Total revenue declined to $5.05 billion in Q3 2020 from $5.88 billion in Q3 2019, impacted by lower volumes in OFS and DS segments.
  • 3A significant goodwill impairment charge of $14.77 billion was recorded in Q1 2020, impacting the overall financial results.
  • 4The Turbomachinery & Process Solutions (TPS) segment demonstrated resilience, with revenue increasing by 26% year-over-year due to higher equipment volume.
  • 5Baker Hughes maintained a strong liquidity position with $4.1 billion in cash and cash equivalents as of September 30, 2020.
  • 6The company implemented a restructuring plan totaling $1.8 billion to align operations with anticipated market conditions, with $0.2 billion incurred in Q3 2020.
  • 7Significant year-over-year declines were observed in the worldwide rig count, down 53% in Q3 2020, reflecting the challenging oil and gas market.

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