BAKER HUGHES Q1 2018 DOWN TO SEASONALITY

April 23, 2018

Baker Hughes Q1 2018 revenue was $5,399 million, a decrease of $400 million, or 7%, sequentially. The decrease was driven primarily by lower revenue in Turbomachinery & Process Solutions which was down 12%, as well as seasonality in Digital Solutions and Oilfield Services, which were down 17% and 4%, respectively. Compared to the same quarter last year, revenue was up 1%.
Orders for the quarter were $5,238 million, down 8% sequentially and up 9% year-over-year. This sequential decrease was mainly driven by typical seasonality, with equipment orders down 14% and service orders down 4%. The 9% year-over-year growth was driven by both strong equipment and services orders across all product companies. Year-over-year equipment orders were up 9% and service orders were up 8%.
Operating loss for the first quarter of 2018 was $41 million. Operating loss decreased 63% sequentially and increased unfavorably year-over-year. Total segment operating income was $327 million for the first quarter of 2018, down 13% sequentially and down 26% year-over-year. The Company secured its latest integrated win with Chrysaor, a leading independent E&P company in the UK, as a preferred service partner and main provider of oilfield services and equipment. BHGE’s OFS business will provide drilling, completions and cementing services. The OFE business will provide surface and subsea wellheads and trees, controls, flexible flowlines, risers and jumpers, and other associated services.
“We made strong progress in the quarter, securing several key commercial wins, executing on our synergy targets and delivering for our customers. I am pleased with our performance on our priorities of growing share, improving margins and generating cash,” said Lorenzo Simonelli, BHGE chairman and chief executive officer
“Looking forward, the macro outlook is favorable and we remain focused on positioning the Company for further growth and profitability. With our talented and experienced team, leading portfolio and a focus on execution, we are set up to deliver this year and beyond.” (Source: Baker Hughes – Image: Baker Hughes base in San Antonio)