Baker Hughes Company announce results for the third quarter of 2022
During the quarter, Baker Hughes announced that it is restructuring and simplifying its organization and accelerating its strategic transformation. Baker Hughes is restructuring its four product companies to focus on two reporting business segments and streamlining its corporate structure, which is expected to deliver at least $150 million in cost savings and form the baseline for further margin improvement. Effective October 1, the Company has been formally restructured into two reporting business segments; Oilfield Services & Equipment (OFSE) integrates the current OFS and OFE product companies; Industrial & Energy Technology (IET) integrates the current TPS and DS product companies. These changes are designed to simplify operations, enhance profitability, and drive growth, meeting customer needs and producing solutions in the rapidly evolving energy and industrial markets.
Highlights:
- Orders of $6.1 billion for the quarter, up 3% sequentially and up 13% year-over-year.
- Revenue of $5.4 billion for the quarter, up 6% sequentially and up 5% year-over-year.
- GAAP operating income of $269 million for the quarter, up $294 million sequentially and down $110 million year-over-year.
- Adjusted operating income (a non-GAAP measure) of $503 million for the quarter, up 34% sequentially and up 25% year-over-year.
- Adjusted EBITDA* (a non-GAAP measure) of $758 million for the quarter, up 16% sequentially and up 14% year-over-year.
- GAAP loss per share of $(0.02) for the quarter which included $0.28 per share of adjusting items. Adjusted earnings per share (a non-GAAP measure) was $0.26.
- Cash flows generated from operating activities were $597 million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $417 million.
| Three Months Ended | Variance | ||||||||||
| (in millions except per share amounts) | September 30, 2022 | June 30, 2022 | September 30, 2021 | Sequential | Year-over-year | ||||||
| Orders | $ | 6,063 | $ | 5,860 | $ | 5,378 | 3% | 13% | |||
| Revenue | 5,369 | 5,047 | 5,093 | 6% | 5% | ||||||
| Operating income (loss) | 269 | (25 | ) | 378 | F | (29)% | |||||
| Adjusted operating income (non-GAAP) | 503 | 376 | 402 | 34% | 25% | ||||||
| Adjusted EBITDA (non-GAAP) | 758 | 651 | 664 | 16% | 14% | ||||||
| Net income (loss) attributable to Baker Hughes | (17 | ) | (839 | ) | 8 | 98% | U | ||||
| Adjusted net income (non-GAAP) attributable to Baker Hughes | 264 | 114 | 141 | F | 87% | ||||||
| EPS attributable to Class A shareholders | (0.02 | ) | (0.84 | ) | 0.01 | 98% | U | ||||
| Adjusted EPS (non-GAAP) attributable to Class A shareholders | 0.26 | 0.11 | 0.16 | F | 58% | ||||||
| Cash flow from operating activities | 597 | 321 | 416 | 86% | 44% | ||||||
| Free cash flow (non-GAAP) | 417 | 147 | 305 | F | 37% |
“F” is used in most instances when variance is above 100%. Additionally, “U” is used in most instances when variance is below (100)%.
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