Baker Hughes Announces First Quarter 2021 Results
Revenue of $4.8 billion for the quarter, down 13% sequentially and down 12% year-over-year.
Orders of $4.5 billion for the quarter, down 12% sequentially and down 18% year-over-year.
- GAAP operating income of $164 million for the quarter, down 10% sequentially and favorable year-over-year.
- Adjusted operating income (a non-GAAP measure) of $270 million for the quarter was down 42% sequentially and up 13% year-over-year.
- Adjusted EBITDA* (a non-GAAP measure) of $562 million for the quarter was down 27% sequentially and down 5% year-over-year.
- GAAP loss per share of $(0.61) for the quarter which included $0.73 per share of adjusting items. Adjusted earnings per share (a non-GAAP measure) was $0.12.
- Cash flows generated from operating activities were $678 million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $498 million.
“We are pleased with our first quarter results as we generated strong free cash flow, continued to drive forward our cost-out efforts, and took further meaningful steps in the execution of our strategy. During the quarter, TPS delivered solid orders and operating income while OFS continued to execute cost-out programs to help drive another strong quarter of margin performance. We also advanced our position in the energy transition, investing in strategic areas for growth and entering important partnerships to advance new energy frontiers including hydrogen and carbon capture, utilization and storage. I want to thank our employees for their continued hard work and commitment to safety,” said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.
On a GAAP basis, operating income for the first quarter of 2021 was $164 million. Operating income decreased $18 million sequentially and increased $16,223 million year-over-year. Total segment operating income was $379 million for the first quarter of 2021, down 34% sequentially and up 5% year-over-year.
Adjusted operating income (a non-GAAP measure) for the first quarter of 2021 was $270 million, which excludes adjustments totaling $106 million before tax, mainly related to restructuring and separation related charges. A complete list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1a in the section entitled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted operating income for the first quarter was down 42% sequentially, driven by declines in the Oilfield Equipment, Digital Solutions, and Turbomachinery & Process Solutions segments which were primarily seasonal, offset by margin expansion in Oilfield Services. Adjusted operating income was up 13% year-over-year driven by volume in the Turbomachinery & Process Solutions segment, and margin expansion in the Oilfield Equipment segment, partially offset by lower volume in the Oilfield Services and Digital Solutions segments.
Depreciation and amortization for the first quarter of 2021 was $292 million.
Adjusted EBITDA (a non-GAAP measure) for the first quarter of 2021 was $562 million, which excludes adjustments totaling $106 million before tax, mainly related to restructuring and separation related charges. Adjusted EBITDA for the first quarter was down 27% sequentially and down 5% year-over-year.
Corporate costs were $109 million in the first quarter of 2021, down 2% sequentially and down 11% year-over-year.
Baker Hughes made progress in strategically positioning the company for new frontiers, announcing new collaborations to advance industrial decarbonization and low- to zero-carbon solutions:
Baker Hughes continued to develop technologies to advance the energy transition, improve efficiencies, reduce emissions and accelerate the digital transformation of industrial segments.
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