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Jun 30, 2021
Baker Hughes Q2 2021 Earnings Report
Announced second quarter 2021 results, showing sequential and year-over-year growth in orders and revenue.
Key Takeaways
Baker Hughes reported a strong second quarter of 2021, with orders reaching $5.1 billion, up 12% sequentially and 4% year-over-year, and revenue of $5.1 billion, up 8% sequentially and 9% year-over-year. The company generated significant free cash flow and continued to execute its strategy, investing in new energy frontiers and advancing partnerships in hydrogen, carbon capture, utilization and storage, and clean integrated power.
Orders increased by 12% sequentially and 4% year-over-year, reaching $5.1 billion.
Revenue increased by 8% sequentially and 9% year-over-year, reaching $5.1 billion.
GAAP operating income increased by 18% sequentially and was favorable year-over-year, reaching $194 million.
Adjusted EBITDA increased by 9% sequentially and 38% year-over-year, reaching $611 million.
Baker Hughes
Baker Hughes
Baker Hughes Revenue by Segment
Revenue by Segment
Oilfield Services Revenue
CapyFin.com Forward Guidance
Baker Hughes anticipates continued global economic recovery driving demand for oil and natural gas in the second half of 2021. Despite risks from COVID-19 variants, spending and activity levels are expected to gain momentum, setting up the industry for stronger growth in 2022.
Positive Outlook
- Continued signs of global economic recovery should drive further demand growth for oil and natural gas.
- Spending and activity levels are expected to gain momentum through the year as the macro environment improves.
- The industry is likely setting up for stronger growth in 2022.
- Focused on executing strategy as the macro economy improves.
- Customers continue on their journey to a net-zero future.
Challenges Ahead
- Risks presented by the variant strains of the COVID-19 virus are recognized.
- Potential for continued spread of the COVID-19 virus and the continuation of the measures to try to contain the virus.
- Restructuring plans may not be successful and achieve the expected result.
- Continued deterioration of market conditions, whether due to the continued spread of COVID-19 or other events could result in further restructuring costs and impairments.
- Failure to successfully eliminate dependencies on GE or a failure by GE to supply products and services to us in accordance with applicable contractual terms could have a material effect on our business.