Baker Hughes Company Announces First Quarter 2022 Results
Orders of $6.8 billion for the quarter, up 3% sequentially and up 51% year-over-year.
Revenue of $4.8 billion for the quarter, down 12% sequentially and up 1% year-over-year.
GAAP operating income of $279 million for the quarter, down 51% sequentially and up 70% year-over-year.
Supporting our Customers
The OFS segment secured multiple well construction contracts with a leading national oil company in the Middle East. Baker Hughes will provide the full scope of technologies from its Integrated Well Services and Solutions (IWSS) offering, including drill bits, directional drilling and logging, drilling fluids, and completion products.
OFE secured a contract in Asia to provide subsea wellhead and subsea production systems as well as related services, including 12 subsea trees, for a deepwater gas field. The project is critical to support natural gas development in the region.
OFE secured multiple subsea equipment contracts to support the recently-discovered offshore Baleine field in Ivory Coast. The contract awards include subsea production systems and offshore equipment as well as flexible flowline and riser systems and connectors. The contract will be executed as a fast-track project using standardized equipment designs to save cost and time, and it is the first project in the country for OFE’s Subsea Production Systems (SPS) product line.
TPS secured a major contract from Venture Global LNG for the first phase of the Plaquemines LNG project in Louisiana. Baker Hughes will provide an LNG system, including 24 modularized compression trains, as well as field services to assist in commissioning the supplied equipment. The contract was awarded under the companies’ master equipment supply agreement to provide 70 million tons per annum (MTPA) of LNG production capacity, and builds on a 2021 award for Baker Hughes to provide the power generation and electrical distribution equipment for the power island of Plaquemines LNG.
TPS received an order for advanced gas turbine generator equipment for Air Products’ upcoming net-zero hydrogen energy complex in Alberta, Canada. The order is part of the companies’ previously announced hydrogen collaboration framework in 2021, and TPS will supply NovaLT16 turbines which will run on 100% hydrogen.
The DS segment saw continued interest in its condition monitoring systems and services in the renewable energy sector. The Bently Nevada product line secured a multi-year agreement with a major wind turbine manufacturer, providing remote monitoring & diagnostic services for 175 wind turbines to help lower repair costs and minimize downtime. Bently Nevada also secured a contract with a renewable power customer in Australia for ARMS Reliability’s consulting services to optimize industrial assets at a major hydropower generation station.
Executing on Priorities
In April, the Company invested in HIF Global, a world leader in eFuels development, to help fund expansion of HIF’s decarbonization business. Baker Hughes’ equity investment is joined by similar investments from Porsche AG, EIG, AME, and Gemstone Investments, and it will be used to develop carbon-neutral eFuels projects in the U.S., Chile and Australia.
Also in April, Baker Hughes acquired Mosaic Materials, a growth stage technology company. Mosaic is focused on developing a proprietary direct air capture technology using Metal-Organic Framework (MOF) materials that can be used to separate carbon dioxide (CO2) from gas mixtures across a variety of applications. Baker Hughes will draw from its existing advanced capabilities including modular design and material science to develop and scale Mosaic’s innovative technology. This will enhance the Company’s carbon capture, utilization and storage portfolio, enabling direct air capture with higher efficiency and lower total cost of ownership.
TPS announced a strategic partnership with, and invested in, NET Power to advance the technical and commercial deployment of NET Power’s low-cost, electrical power system that generates no atmospheric emissions and inherently capture all CO2. Baker Hughes will apply its advanced TPS technology to develop supercritical CO2 turboexpanders and other critical pumping and compression technology for NET Power’s plants, as well as bring its systems integration and process experience to accelerate commercial deployment.
TPS continued to gain traction with its NovaLT gas turbine technology for a broad range of industrial and energy applications. TPS secured a contract with TERNA in Greece to provide hydrogen-ready turbomachinery technology for a new compression station of the Greek Natural Gas Transmission System. The contract includes three compression trains for a total of three NovaLT12 turbines and three PCL compressors. The technology has been configured to support the compression station’s capabilities to transport up to 10% hydrogen and is expected to enter operation in 2024.
OFS signed an agreement to acquire Altus Intervention, a leading international provider of well intervention services and down-hole oil & gas technology with 40 years of industry experience. The acquisition complements Baker Hughes’ existing portfolio of oilfield technologies and integrated solutions by enhancing the Company’s life-of-well capabilities as operators look to improve efficiencies from mature fields. The transaction is expected to close in the second half of 2022.
OFS announced the formation of a new chemicals joint venture (JV) in Saudi Arabia with Dussur, an affiliate of Aramco and SABIC. The JV will utilize Baker Hughes’ existing Oilfield & Industrial Chemicals (OIC) product line footprint in the region, enhancing efficiencies between the Company, suppliers and customers while lowering operating expenses and increasing locally sourced materials. Baker Hughes will contribute its existing OIC infrastructure, personnel, and contracts within Saudi Arabia for the JV.
OFS announced an investment in California-based geothermal innovator GreenFire Energy. The companies will collaborate on bringing the first integrated Advanced Geothermal Systems solution to the market, as well as partnering on project feasibility analyses, system installations, and global project developments.
DS saw increased traction in its industrial asset management (IAM) solutions. The Bently Nevada product line secured a multi-year contract with ACELEN in Brazil to implement the ARMS Reliability OnePM solution to improve management, enhance performance, and reduce maintenance costs at a major refinery.
Leading with Innovation
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