Summary
Baker Hughes Company (BKR) reported its first quarter 2022 financial results, showing a slight increase in total revenue to $4.835 billion, up from $4.782 billion in the prior year's quarter. This growth was primarily driven by a significant increase in the Oilfield Services (OFS) segment, which saw revenue rise by 13% due to higher activity levels and favorable pricing. Despite the revenue increase, the company faced challenges with inflationary pressures and supply chain constraints, particularly impacting the Turbomachinery & Process Solutions (TPS) and Oilfield Equipment (OFE) segments, which experienced revenue declines. Net income attributable to Baker Hughes Company turned positive at $72 million ($0.08 per diluted share), a substantial improvement from a net loss of $452 million ($0.61 per diluted share) in the first quarter of 2021. This turnaround was significantly aided by a notable reduction in other non-operating losses, primarily due to a smaller negative impact from the fair value adjustment of its investment in C3 AI, compared to the prior year. The company also highlighted strategic investments and acquisitions aimed at positioning for the energy transition, including partnerships in low-carbon power generation and eFuels, as well as the acquisition of Mosaic Materials for CO2 separation technology.
Financial Highlights
42 data points| Revenue | $4.83B |
| SG&A Expenses | $621.00M |
| Operating Expenses | $4.56B |
| Operating Income | $279.00M |
| Net Income | $72.00M |
| EPS (Diluted) | $0.08 |
Key Highlights
- 1Total revenue increased slightly to $4.835 billion, driven by strong performance in the Oilfield Services (OFS) segment.
- 2Net income attributable to Baker Hughes Company turned positive at $72 million, a significant improvement from a net loss of $452 million in Q1 2021.
- 3Oilfield Services (OFS) segment revenue grew 13% to $2.489 billion, fueled by increased activity and pricing in North America and internationally.
- 4Turbomachinery & Process Solutions (TPS) and Oilfield Equipment (OFE) segments experienced revenue declines, impacted by lower equipment and project volumes.
- 5The company recorded a substantial reduction in 'Other non-operating loss, net', largely due to a smaller loss from C3 AI investment fair value adjustments compared to the prior year.
- 6Baker Hughes announced strategic investments in the energy transition space, including partnerships with NET Power and HIF Global, and the acquisition of Mosaic Materials.
- 7The company suspended new investments in Russia due to the ongoing conflict and resulting sanctions, though Russia represented approximately 4% of Q1 2022 revenue.