Summary
Baker Hughes Company reported its first-quarter 2021 financial results, highlighting a year-over-year revenue decrease to $4.78 billion from $5.42 billion, impacted by lower activity in its Oilfield Services, Oilfield Equipment, and Digital Solutions segments. Despite the revenue decline, the company saw a significant reduction in its net loss attributable to Baker Hughes Company to $452 million, compared to $10.23 billion in the prior year period, largely due to the absence of the substantial goodwill impairment charge recorded in Q1 2020. The company generated $678 million in cash from operating activities, an improvement from $478 million in Q1 2020, demonstrating progress in working capital management. Baker Hughes also highlighted its strategic positioning for the energy transition, announcing new collaborations for decarbonization and acquiring ARMS Reliability to bolster its digital transformation capabilities. The company maintained a strong liquidity position with $4.4 billion in cash and cash equivalents, underscoring its financial resilience amidst volatile market conditions.
Financial Highlights
40 data points| Revenue | $4.78B |
| SG&A Expenses | $587.00M |
| Operating Expenses | $4.62B |
| Operating Income | $164.00M |
| Net Income | -$452.00M |
| EPS (Diluted) | $-0.61 |
Key Highlights
- 1Total revenue decreased by 12% year-over-year to $4.78 billion, primarily due to reduced activity in Oilfield Services and Oilfield Equipment segments.
- 2Net loss attributable to Baker Hughes Company significantly improved to $452 million from $10.23 billion in the prior year, largely due to the absence of a $14.8 billion goodwill impairment charge recorded in Q1 2020.
- 3Operating cash flow increased to $678 million from $478 million year-over-year, reflecting improved working capital management.
- 4Turbomachinery & Process Solutions (TPS) segment showed strong growth, with revenue increasing by 37% to $1.49 billion, driven by higher equipment volume.
- 5The company announced progress in its energy transition strategy, including cooperation agreements for natural gas and LNG decarbonization and acquisition of ARMS Reliability.
- 6Liquidity remains strong, with cash and cash equivalents at $4.4 billion, and the company has no outstanding borrowings under its $3 billion revolving credit facility.
- 7The company recorded an unrealized loss of $788 million on its investment in C3.ai, which contributed to the 'Other non-operating income (loss), net' line item.