Baker Hughes on Wednesday reported a third quarter 2020 net loss of $170 million or 25 cents per share, Kallanish Energy reports.
That compares a net gain of $57 million or 11 cents per share in 3Q 2019, the Texas-based well services company said.
It was the third straight quarter of losses for Baker Hughes.
The results were due in large part to the coronavirus pandemic and resulting lower demand and lower commodity prices that resulted in fewer wells being drilled.
The company reported orders of $5.1 billion in the quarter. That is up 4% from 2Q 2020 but down 34% from 3Q 2019.
It had 3Q 2020 revenue of $5 billion. That is up 7% from 2Q 2020 and down 14% from 3Q 2019.
It had adjusted operating income of $234 million. That was down 45% from 3Q 2019.
Cash flow generated from operating activities was $219 million for the quarter. Free cash flow for the quarter was $52 million.
It reported GAAP operating loss of $49 million in the quarter, up 6% from 2Q 2020.
“Despite continued uncertainty in global oil and gas markets and the ongoing impact of the Covid-19 pandemic, we produced solid results in the third quarter of 2020,” said chairman and CEO Lorenzo Simonelli in a statement.
He said he was pleased with the financial results from the Oilfield Services and Oilfield Equipment teams and the commercial success and performance from Turbomachinery & Process Solutions and Digital Solutions.
Revenue from the company’s Oilfield Services unit which accounts for 46% of its sales fell 32% to $2.3 billion in the quarter.
Orders in the company’s Oilfield Equipment were down 58% from 3Q 2019 to $432 million.
“After significant turmoil during the first half of the year, oil markets have somewhat stabilized. However, demand recovery is beginning to level off and significant excess capacity remains, which could create volatility in the future,” he said.
Simonelli added, “The outlook for natural gas is slightly more optimistic as forward prices have improved with strong demand in Asia and lower expected future gas production in the U.S.”
Baker Hughes is on track as it continues to right-size the business and to achieve $700 million in cost savings in 2020 by year-end, he said.
The company is “intensely focused on improving the margin and return profile of Baker Hughes, despite the near-term macro volatility,” he said.
The firm has headquarters in Houston, Texas, and London, United Kingdom.
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