Summary
Baker Hughes Company reported revenue of $5.14 billion for the second quarter of 2021, an increase of 9% compared to $4.74 billion in the same period of 2020. This growth was primarily driven by higher volume in the Turbomachinery & Process Solutions (TPS) and Digital Solutions (DS) segments, which offset decreases in Oilfield Services (OFS) and Oilfield Equipment (OFE). The company swung to an operating income of $194 million from a loss of $52 million in the prior year's quarter, reflecting improved cost productivity and restructuring efforts, particularly in the OFS segment. For the first six months of 2021, revenue was $9.92 billion, a slight decrease from $10.16 billion in the prior year. However, total segment operating income saw a significant improvement, increasing to $824 million from $583 million in the first half of 2020, largely due to strong performance in TPS and cost efficiencies across segments. The company maintained a strong liquidity position with $3.9 billion in cash and cash equivalents and no outstanding borrowings under its credit facilities, positioning it to navigate the evolving energy market and capitalize on opportunities in cleaner energy solutions.
Financial Highlights
42 data points| Revenue | $5.14B |
| SG&A Expenses | $642.00M |
| Operating Expenses | $4.95B |
| Operating Income | $194.00M |
| Net Income | -$68.00M |
| EPS (Diluted) | $-0.08 |
| Shares Outstanding (Diluted) | 806.00M |
Key Highlights
- 1Revenue increased by 9% year-over-year to $5.14 billion in Q2 2021, driven by growth in TPS and DS segments.
- 2Operating income turned positive at $194 million in Q2 2021, a significant improvement from a loss of $52 million in Q2 2020.
- 3Turbomachinery & Process Solutions (TPS) segment showed strong revenue growth of 40% year-over-year in Q2 2021.
- 4The company maintains a robust liquidity position with $3.9 billion in cash and cash equivalents and no borrowings outstanding on its credit facilities as of June 30, 2021.
- 5Restructuring and cost-efficiency initiatives are showing positive impacts, particularly noted in the improved operating income for the Oilfield Services (OFS) segment.
- 6Baker Hughes is strategically positioning itself for the energy transition, announcing several collaborations and investments in low to zero-carbon solutions.
- 7Despite a challenging prior year marked by significant goodwill impairment, the company demonstrated operational recovery and strategic focus on future growth areas.