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Sep 30, 2020
Baker Hughes Q3 2020 Earnings Report
Baker Hughes reported solid results despite continued uncertainty in global oil and gas markets and the ongoing impact of the COVID-19 pandemic.
Key Takeaways
Baker Hughes announced Q3 2020 results with revenue of $5.0 billion, up 7% sequentially and down 14% year-over-year. The company reported a GAAP operating loss of $49 million and adjusted earnings per share of $0.04. They generated $219 million in cash flow from operating activities and $52 million in free cash flow.
Orders of $5.1 billion for the quarter, up 4% sequentially and down 34% year-over-year.
Revenue of $5.0 billion for the quarter, up 7% sequentially and down 14% year-over-year.
GAAP operating loss of $49 million for the quarter, up 6% sequentially and unfavorable year-over-year.
Adjusted earnings per share (a non-GAAP measure) was $0.04.
Baker Hughes
Baker Hughes
Baker Hughes Revenue by Segment
Revenue by Segment
Oilfield Services Revenue
CapyFin.com Forward Guidance
Baker Hughes is focused on improving margin and return profile while executing long-term strategy to evolve portfolio along with the energy landscape, remaining committed to leading the energy transition and becoming a key enabler to decarbonizing oil and gas and other industries.
Positive Outlook
- On track to hit goals of right-sizing the business.
- Generating free cash flow.
- Achieving $700 million in annualized cost savings by year end.
- Intensely focused on improving the margin and return profile of Baker Hughes despite the near-term macro volatility.
- Executing on long-term strategy to evolve our portfolio along with the energy landscape.
Challenges Ahead
- Continued uncertainty in global oil and gas markets.
- Ongoing impact of the COVID-19 pandemic.
- Demand recovery is beginning to level off.
- Significant excess capacity remains, which could create volatility in the future.
- Near-term macro volatility