Baker Hughes Company reported robust results for the second quarter of 2024, underscoring strong operating performance and strategic execution. CEO Lorenzo Simonelli highlighted the company’s ability to drive margin expansion and raised the midpoint of full-year guidance by 5 percent, emphasising confidence in future margin growth.
The company saw significant order momentum with $3.5 billion in IET orders, including a major contract from SONATRACH for gas-boosting in Algeria’s Hassi R’Mel gas field. This achievement marked the highest quarterly non-LNG equipment bookings in Baker Hughes’ history. Additionally, Baker Hughes recorded $445 million in new energy orders, setting another company record.
Outstanding second-quarter results included a 25 percent year-over-year increase in total company adjusted EBITDA and 46 percent growth in adjusted EPS. Adjusted EBITDA margins rose by nearly 150 basis points to 15.8 percent. The company also returned significant cash to shareholders, paying $209 million in dividends and repurchasing $166 million in shares.
Quarter Highlights:
Oilfield Services & Equipment:
- Secured multiple significant contracts with Petrobras for workover, plug and abandonment services, and seabed centrifugal pumping systems for the Jubarte field.
- Continued growth in mature assets solutions with a joint cooperation agreement with the State Oil Company of Azerbaijan Republic for more than 150 electrical submersible pumps and automated field production solutions.
Industrial & Energy Technology:
- Awarded a major Gas Technology Equipment contract for SONATRACH’s Hassi R’ Mel gas field.
- Secured two major offshore topside contracts for power generation systems for all-electric Floating Production Storage and Offloading units.
- Signed a 10-year services frame agreement with Woodside Energy to support LNG operations in Australia and extended a service agreement with a major North American LNG customer.
Financial Performance:
- Orders: $7.5 billion, a 15 percent increase sequentially and 1 percent year-over-year.
- Revenue: $7.1 billion, an 11 percent increase sequentially and 13 percent year-over-year.
- Net income: $579 million, up 27 percent sequentially and 41 percent year-over-year.
- Adjusted net income: $568 million, up 32 percent sequentially and 44 percent year-over-year.
- Adjusted EBITDA: $1.13 billion, up 20 percent sequentially and 25 percent year-over-year.
Total company adjusted operating income for Q2 2024 was $847 million, a 28 percent increase sequentially and 34 percent year-over-year. The increase was driven by higher volume and pricing, partially offset by negative mix in IET and OFSE. The company’s total book-to-bill ratio was 1.1.
Baker Hughes continues to focus on strategic global collaborations, notably with Air Products for advanced hydrogen, syngas, and CO2 solutions. The company secured significant orders for CO2 and hydrogen compressors and pumps for Air Products’ projects in North America.
The company’s exceptional performance is attributed to the dedication of its employees, as acknowledged by Simonelli. Baker Hughes remains on course to return 60 percent – 80 percent of free cash flow to shareholders and continues to enhance its operational rigour across its segments.
For more information visit www.bakerhughes.com
