Baker Hughes Third-Quarter 2024 Results
London, October 23, 2024, (Oilandgaspress) ––– Baker Hughes Company announced results today for the third quarter of 2024.
Third-quarter highlights
Orders of $6.7 billion, including $2.9 billion of IET orders.
RPO of $33.4 billion, including record IET RPO of $30.2 billion.
Revenue of $6.9 billion, up 4% year-over-year.
Attributable net income of $766 million.
GAAP diluted EPS of $0.77 and adjusted diluted EPS* of $0.67.
Adjusted EBITDA* of $1,208 million, up 23% year-over-year.
Cash flows from operating activities of $1,010 million and free cash flow* of $754 million.
Returns to shareholders of $361 million, including $152 million of share repurchases.
“We delivered another quarter of record EBITDA, highlighted by exceptional operational performance across both segments. Our margins continue to improve at an accelerated pace, with total company EBITDA margins increasing to 17.5%. This marks the highest margin quarter since the company was formed. On the back of our solid third-quarter results and stable outlook, we remain confident in achieving our full-year EBITDA guidance midpoint,” said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.
“Orders remain at solid levels, with IET orders of $2.9 billion marking the eighth consecutive quarter at or above these levels. IET continued to demonstrate strong order momentum for gas infrastructure and FPSOs, booking the largest ever ICL compressor award from Dubai Petroleum Establishment for the Margham Gas storage facility and two FPSO awards with separate offshore operators.”
“Overall, our segments continue to make strong progress on their journey toward 20% EBITDA margins, with both segments achieving high-teen margins during the quarter. Our operational discipline and rigor continue to gain traction.”
“We are also benefiting from the life-cycle attributes of our service offerings and the breadth of our portfolio. With significant recurring IET service revenue, strong production-levered businesses, untapped market opportunities, and improved cost structure, we are becoming less cyclical and capable of generating more durable earnings and free cash flow across cycles.”
“We are successfully executing our strategy, and this is a testament to the strength of our people and the culture we are building,” concluded Simonelli.
* Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”
| Three Months Ended | Variance | ||||||||||
| (in millions except per share amounts) | September 30, 2024 | June 30, 2024 | September 30, 2023 | Sequential | Year-over-year | ||||||
| Orders | $ | 6,676 | $ | 7,526 | $ | 8,512 | (11%) | (22%) | |||
| Revenue | 6,908 | 7,139 | 6,641 | (3%) | 4% | ||||||
| Net income attributable to Baker Hughes | 766 | 579 | 518 | 32% | 48% | ||||||
| Adjusted net income attributable to Baker Hughes* | 666 | 568 | 427 | 17% | 56% | ||||||
| Operating income | 930 | 833 | 714 | 12% | 30% | ||||||
| Adjusted operating income* | 930 | 847 | 716 | 10% | 30% | ||||||
| Adjusted EBITDA* | 1,208 | 1,130 | 983 | 7% | 23% | ||||||
| Diluted earnings per share (EPS) | 0.77 | 0.58 | 0.51 | 33% | 51% | ||||||
| Adjusted diluted EPS* | 0.67 | 0.57 | 0.42 | 18% | 59% | ||||||
| Cash flow from operating activities | 1,010 | 348 | 811 | F | 25% | ||||||
| Free cash flow* | 754 | 106 | 592 | F | 27% | ||||||
* Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”
“F” is used when variance is above 100%. Additionally, “U” is used when variance is below (100)%.
Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.
Quarter Highlights
Industrial & Energy Technology (“IET”) experienced a strong quarter for its Integrated Compressor Line (“ICL”) technology. In its largest ICL award to-date, and booked under Climate Technology Solutions (“CTS”), Baker Hughes will supply 10 units to Dubai Petroleum Establishment for the Margham Gas storage facility. These ICL units will support gas infrastructure, providing stability to Dubai’s energy supply by strengthening the system’s ability to switch between natural gas and solar power.
IET’s Gas Technology Equipment (“GTE”) was also awarded a significant contract to supply advanced compression solutions to Saipem for TotalEnergies’ all-electric Kaminho Floating Production Storage and Offloading (“FPSO”) project in Angola. Baker Hughes’ centrifugal BCL compressor and ICL technology were selected because of the capability to minimize greenhouse emissions and eliminate routine flaring by reinjecting associated gas into the reservoir for storage. Separately, IET was selected to provide electric motor-driven process compressors for an FPSO project in Latin America.
IET’s Gas Technology Services (“GTS”) secured a multi-decade agreement for an LNG facility in the Middle East. The scope encompasses extensive maintenance services and digital solutions, leveraging Baker Hughes’ iCenter™ Remote Monitoring and Diagnostics capabilities.
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Baker Hughes Declares Quarterly Dividend
London, October 23, 2024, (Oilandgaspress) ––– Baker Hughes (NASDAQ: BKR) announced today that the Baker Hughes Board of Directors declared a quarterly cash dividend of $0.21 per share of Class A common stock payable on Nov. 14, 2024, to holders of record on Nov. 4, 2024.
In line with our stated goal to responsibly grow the dividend over time, the dividend reflects a 5% increase, or $0.01, compared to the same quarter last year. Baker Hughes expects to fund its quarterly cash dividend from cash generated from operations.
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