Oilfield service company Baker Hughes raked in US$5.7 billion in revenue as the first quarter of 2023 closed, with over US$300 million in new orders already secured.
In its earnings report for the quarter, Baker Hughes said the stronger-than-expected quarterly results can be largely attributed to the impressive performance of the Oilfield Services and Equipment and Industrial and Energy Technology business units.
“We delivered solid operating results at the high end of our guidance in both business segments and generated approximately US$200 million of free cash flow,” said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer (CEO).
Its Oilfield Services and Equipment unit generated US$3.5 million in revenues, representing a significant 19% increase from the US$3.017 million reported in the same quarter last year.
Baker Hughes’ segment witnessed a surge in operating income to US$371 million, as compared to the US$213 million reported in the first quarter of 2022, primarily driven by a rise in revenues across most of its product lines.
The Industrial & Energy Technology unit of Baker Hughes reported revenues of US$2.138 million, reflecting an 18% increase from the US$1.818 million recorded in the same quarter of the previous year. While the operating income from this segment remained unchanged at US$241 million from the year-ago quarter, it was supported by a boost in contributions from the Gas Technology segment.
“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,” Simonelli added.
Baker Hughes serves as a prime contractor to ExxonMobil, supporting its operations in the Stabroek Block. Its main base – the Baker Hughes Supercentre – sits on more than eight acres of land adjacent to the Demerara Harbour, Guyana’s main waterway. It supports regional customers and bolsters Baker Hughes’ localisation efforts within South America.
