•
Mar 31, 2022

Baker Hughes Q1 2022 Earnings Report

Baker Hughes' first quarter results reflected operations in a volatile market environment, with strong orders from TPS offset by challenges from global supply chain constraints and geopolitical events.

Key Takeaways

Baker Hughes announced first quarter 2022 results, with orders up 51% year-over-year and revenue up 1%. The company reported GAAP earnings per share of $0.08 and adjusted earnings per share of $0.15. Despite a favorable oil and gas price backdrop, the company faces a dynamic operating environment with inflation and supply pressures.

Orders increased by 51% year-over-year, driven by strong performance in Oilfield Equipment and Turbomachinery & Process Solutions.

Revenue increased by 1% year-over-year, primarily due to higher volume in Oilfield Services.

GAAP operating income increased by 70% year-over-year, while adjusted operating income increased by 29%.

The company is optimistic about the outlook across its core business areas and is making new energy investments.

Total Revenue
$4.84B
Previous year: $4.78B
+1.1%
EPS
$0.15
Previous year: $0.12
+25.0%
Cash and Equivalents
$3.19B
Previous year: $4.38B
-27.2%
Free Cash Flow
-$105M
Previous year: $498M
-121.1%
Total Assets
$35B
Previous year: $36.8B
-5.0%

Baker Hughes

Baker Hughes

Baker Hughes Revenue by Segment

Forward Guidance

Baker Hughes anticipates a favorable oil and gas price backdrop but also a dynamic operating environment. The company is optimistic on the outlook across both of its core business areas and excited about the new energy investments they are making.

Positive Outlook

  • Favorable oil and gas price backdrop
  • Extended cyclical recovery in upstream oil & gas
  • Longer-term structural growth trends in LNG
  • New energy investments
  • Industrial asset management

Challenges Ahead

  • Broad-based inflation
  • Supply pressures for key materials
  • Commodities pressures
  • Labor pressures
  • Geopolitical events exacerbating trends