Oilfield services provider Baker Hughes, a GE company, posted an increase in its quarterly revenues as well as growth in orders year-over-year.
Before diving into the company’s financial performance for 1Q 2018, it is worth reminding that Baker Hughes completed its merger with GE’s Oil & Gas division in July 2017. Therefore, the performance comparison with the first quarter of 2017 is made on a combined business basis.
According to the company’s report released on Friday, its revenues for the first quarter 2018 totaled $5.4 billion, which is down 7% sequentially and up 1% year-over-year on a combined business basis. Namely, revenues in 1Q 2017 totaled $5.3 billion.
During the first quarter of 2018, Baker Hughes’ GAAP operating loss was $41 million, a decrease of 63% sequentially and an unfavorable increase year-over-year on a combined business basis.
The company’s adjusted operating income (a non-GAAP measure) was $228 million for the quarter, down 20% sequentially and down 19% year-over-year on a combined business basis.
Net income attributable to Baker Hughes in 1Q 2018 was $70 million compared to $31 million at the end of 4Q 2017. However, the company did not provide earnings for the combined business in the same quarter of 2017.
Orders for the quarter were $5.2 billion, 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%.
Backlog in the first quarter ended at $22.2 billion, an increase of $1.2 billion or 6% from the fourth quarter of 2017. The increase was primarily driven by the impact from adopting the new revenue recognition accounting standard.
Offshore Energy Today Staff