Oilfield services firm Baker Hughes, a GE company, delivered what chairman and CEO Lorenzo Simonelli called a “solid” first quarter, due to stabilizing global oil and natural gas markets, Kallanish Energy reports.
“The U.S. rig count dropped slightly less than expected, and international activity remained steady; the LNG market is very active,” Simonelli said.
During the first three months of 2019, Baker Hughes booked nearly $5.7 billion in orders, up 9% from $5.24 billion one year ago, while revenue year-over-year rose 4%, to $5.62 billion from $5.40 billion. (All numbers are rounded.)
Net income dropped 55%, to $32 million, from $70 million, while adjusted income jumped 99%, to $76 million from $38 million.
Three of four segments positive for Baker Hughes
|Segment||3 months ended 3-31-19||3 months ended 3-31-18||Change|
|Oilfield services||$3.00 billion||$2.64 billion||14%|
|Oilfield equipment||$766 million||$499 million||54%|
|Turbomachinery & process solutions||$1.27 billion||$1.45 billion||-12%|
|Digital solutions||$659 million||$649 million||2%|
|TOTAL||$5.69 billion||$5.24 billion||9%|
Source: Baker Hughes, a GE company
Looking at revenue from Baker Hughes four individual operating segments, oilfield services’ revenue rose 12% year-over-year, to $2.99 billion, from $2.68 billion, while the oilfield equipment segment revenue increased 11%, to $735 million, from $664 million one year ago.
“In oilfield services, we saw typical seasonal declines in volume sequentially, and strong year-over-year growth across all product lines,” according to Simonelli. “In the quarter, we continued to execute in our core well construction product lines, and re-entered a number of markets globally by securing large, multi-year awards from customers.”
“In oilfield equipment, we delivered another strong orders quarter, winning major contract awards across a number of subsea projects,” Simonelli said.
Turbomachinery & process solutions revenue fell 11%, to $1.30 billion, from $1.46 billion, while digital solutions fell 1%, to $592 million, from $598 million.
“Our turbomachinery & process solutions segment saw continued activity in the LNG market, with further progress on several major projects,” Simonelli said. “In the first quarter, we secured contract awards to provide turbomachinery equipment for the Golden Pass LNG export facility and BP’s Tortue Floating LNG project.”
“In digital solutions, we continue to drive growth with customers across end markets such as electronics, automotive, aviation and additive manufacturing,” according to Simonelli.
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