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Jun 30, 2022
Baker Hughes Q2 2022 Earnings Report
Baker Hughes' Q2 2022 results were announced, revealing a mix of challenges and successes across its product companies, with overall revenue declining slightly year-over-year but showing sequential growth.
Key Takeaways
Baker Hughes reported mixed results for Q2 2022. Revenue reached $5.0 billion, up 4% sequentially but down 2% year-over-year. The company experienced a GAAP operating loss of $25 million, while adjusted operating income was $376 million. Adjusted EPS was $0.11. Cash flow from operating activities was $321 million, and free cash flow was $147 million.
Orders were $5.9 billion, down 14% sequentially but up 15% year-over-year.
Revenue was $5.0 billion, up 4% sequentially but down 2% year-over-year.
GAAP operating loss was $25 million, while adjusted operating income was $376 million.
Adjusted earnings per share was $0.11.
Revenue by Segment
Forward Guidance
Baker Hughes is preparing for various scenarios in the oil markets, expecting continued volatility but anticipating strong activity levels driven by the LNG cycle and upstream spending.
Positive Outlook
- Portfolio is well positioned to benefit from a strong LNG cycle.
- Multi-year upstream spending cycle expected to drive growth.
- Continued investment in energy transition and industrial initiatives.
- Commitment to return 60 to 80% of free cash flow to shareholders.
- Baker Hughes is preparing for all of these scenarios and will continue to execute on our long-term strategy.
Challenges Ahead
- Demand outlook for the next 12 to 18 months is deteriorating due to inflation.
- Central banks are aggressively raising interest rates to combat inflation.
- Potential need to replace Russian barrels creates uncertainty.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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