Baker Hughes Rakes in Higher Profits in 3Q



Baker Hughes Rakes in Higher Profits in 3Q
Baker Hughes Company's net income for third quarter was $57 million, more than quadruple the amount year-over-year.

Baker Hughes Company’s net income for third quarter was $57 million, more than quadruple the amount of $13 million just one year ago. Revenues were $5.9 billion for the quarter.

The Houston-based oilfield services (OFS) company also saw its orders up year-over-year.

Orders for the quarter were $7.8 billion, up 19 percent from second quarter 2019 and up 35 percent from a year ago.

CEO Lorenzo Simonelli credited the year-over-year growth in orders from three out of four of the company’s segments and driven primarily by Turbomachinery & Process Solutions (TPS) and Oilfield Equipment (OFE).

The company highlighted other wins for the quarter. Some of them include:

  • OFS segment signed a large agreement with Saudi Aramco for the next five years
  • OFS segment contracted with a major oilfield services operator to provide artificial lift services in the Permian Basin
  • Awarded the OFS segment with a seven-year contract extension for drilling and wireline services and a five-year extension for completions and well intervention services onshore and offshore Brunei
  • OFE segment won contract by Vår Energi for 16 subsea production systems on the Norwegian Continental Shelf  
  • The TPS segment given green light to proceed with Venture Global LNG’s Calcasieu Pass project in Louisiana  

“Overall, we executed well in the third quarter, and we believe that Baker Hughes is well positioned to navigate a potentially choppy macro backdrop with a good combination of long-cycle businesses in TPS and OFE, more stable end markets within Digital Solutions and a differentiated OFS portfolio,” Simonelli said.

To contact the author, email Valerie.Jones@Rigzone.com



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.