Baker Hughes Announce First Quarter 2023 Results
Orders of $7.6 billion for the quarter, up 12% year-over-year.
- Revenue of $5.7 billion for the quarter, up 18% year-over-year.
- GAAP operating income of $438 million for the quarter, up $160 million year-over-year.
- Adjusted operating income (a non-GAAP measure) of $512 million for the quarter, up 47% year-over-year.
- Adjusted EBITDA* (a non-GAAP measure) of $782 million for the quarter, up 25% year-over-year.
- GAAP diluted earnings per share of $0.57 for the quarter which included $0.28 per share of adjusting items. Adjusted diluted earnings per share (a non-GAAP measure) was $0.28.
- Cash flows generated from operating activities were $461 million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $197 million.
The Company presents its financial results in accordance with GAAP. However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see reconciliations in the section entitled “Reconciliation of GAAP to non-GAAP Financial Measures.” Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.
*Adjusted EBITDA (a non-GAAP measure) is defined as operating income excluding depreciation & amortization and operating income adjustments.
HOUSTON and LONDON, April 19, 2023 (GLOBE NEWSWIRE) — Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) announced results today for the first quarter of 2023.
| Three Months Ended | Variance | |||||||||||
| (in millions except per share amounts) | March 31, 2023 | December 31, 2022 | March 31, 2022 | Sequential | Year-over-year | |||||||
| Orders | $ | 7,632 | $ | 8,009 | $ | 6,837 | (5 | )% | 12 | % | ||
| Revenue | 5,716 | 5,905 | 4,835 | (3 | )% | 18 | % | |||||
| Operating income | 438 | 663 | 279 | (34 | )% | 57 | % | |||||
| Adjusted operating income (non-GAAP) | 512 | 692 | 348 | (26 | )% | 47 | % | |||||
| Adjusted EBITDA (non-GAAP) | 782 | 947 | 625 | (17 | )% | 25 | % | |||||
| Net income attributable to Baker Hughes | 576 | 182 | 72 | F | F | |||||||
| Adjusted net income (non-GAAP) attributable to Baker Hughes | 289 | 381 | 145 | (24 | )% | 99 | % | |||||
| EPS attributable to Class A shareholders | 0.57 | 0.18 | 0.08 | F | F | |||||||
| Adjusted EPS (non-GAAP) attributable to Class A shareholders | 0.28 | 0.38 | 0.15 | (25 | )% | 85 | % | |||||
| Cash flow from operating activities | 461 | 898 | 72 | (49 | )% | F | ||||||
| Free cash flow (non-GAAP) | 197 | 657 | (105 | ) | (70 | )% | F |
“F” is used in most instances when variance is above 100%. Additionally, “U” is used in most instances when variance is below (100)%.
“We were pleased with our first quarter results and remain optimistic on the outlook for 2023. We maintained our strong order momentum in IET and SSPS. We also delivered solid operating results at the high end of our guidance in both business segments, booked almost $300 million of New Energy orders and generated approximately $200 million of free cash flow,” said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.
“While 2023 has already started off with some macro volatility, we remain optimistic on the outlook for energy services and Baker Hughes. Our diverse portfolio features long cycle and short cycle businesses that position us well to navigate any periods of variability that may occur across the energy sector.”
“We continue to believe that the current environment remains unique, with a spending cycle that is more durable and less sensitive to commodity price swings, relative to prior cycles. Another notable characteristic of this cycle is the continued shift towards the development of natural gas and LNG. As the world increasingly recognizes the crucial role natural gas will play in the energy transition, serving as both a transition and destination fuel, the case for a multi-decade growth opportunity in gas is steadily improving as both a transition and destination fuel.”
“In addition to capitalizing on the commercial opportunities presented by this favorable macro backdrop, Baker Hughes remains committed in 2023 to transforming the Company operationally and positioning it for growth in the energy and industrial markets. I want to thank our shareholders, customers, and our employees for their continued hard work to deliver against our strategic goals,” concluded Simonelli.
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