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Jun 30, 2020
Baker Hughes Q2 2020 Earnings Report
Baker Hughes's financial performance declined due to the impact of the COVID-19 pandemic and lower oil and gas prices.
Key Takeaways
Baker Hughes reported a challenging second quarter of 2020, with a decline in orders and revenue compared to the previous quarter and the same quarter last year. The company navigated through the ongoing impacts of the COVID-19 pandemic and the sharp decline in activity levels due to lower oil and gas prices.
Orders were down 12% sequentially and 25% year-over-year.
Revenue was down 13% sequentially and 21% year-over-year.
GAAP operating loss was $52 million.
Adjusted loss per share was $(0.05).
Baker Hughes
Baker Hughes
Baker Hughes Revenue by Segment
Revenue by Segment
Oilfield Services Revenue
CapyFin.com Forward Guidance
Baker Hughes is preparing for potential future volatility, while also focusing on structurally reducing their cost base and implementing a number of strategic initiatives across all of their product companies. They are on track to hit their goals of structurally right-sizing their business and achieving the $700 million in annualized cost savings by year end.
Positive Outlook
- Majority of lockdowns have been easing globally and economic activity likely troughed during the second quarter.
- Executing on the framework laid out on first quarter earnings call.
- On track to hit goals of structurally right-sizing business.
- Achieving the $700 million in annualized cost savings by year end.
- Committed to strategy, maintaining focus on higher-margin and differentiated portfolio offerings.
Challenges Ahead
- Risk of a second wave of virus cases.
- Reinstitution of select lockdowns.
- Risk of lingering high unemployment.
- Uncertain economic environment that likely persists through the rest of 2020.
- Preparing for potential future volatility.