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Sep 30, 2022
Baker Hughes Q3 2022 Earnings Report
Baker Hughes announced third quarter results with increased revenue and adjusted operating income.
Key Takeaways
Baker Hughes reported a mixed Q3 2022, demonstrating strong performance in Oilfield Services (OFS) and order growth, but also facing challenges in Turbomachinery & Process Solutions (TPS). The company is restructuring into two segments, OFSE and IET, to improve focus and execution. They remain positive on the outlook for oil and gas, and anticipate growth in clean energy development due to recent policy changes.
Orders were up 3% sequentially and 13% year-over-year.
Revenue increased 6% sequentially and 5% year-over-year.
GAAP operating income increased sequentially but decreased year-over-year.
Adjusted EPS was $0.26.
Revenue by Segment
Forward Guidance
Baker Hughes is preparing for various economic scenarios, focusing on factors within their control. They've restructured into OFSE and IET segments to improve focus and profitability. The company aims to capitalize on changing energy markets and increase shareholder value through investments in new energy and long-term growth.
Positive Outlook
- Positive outlook for oil and gas with supportive fundamentals for a multi-year upturn in global upstream spending.
- Elevated natural gas and LNG pricing remains constructive for future FIDs.
- Policy movements in Europe and the U.S. are likely to support a significant increase in clean energy development.
- Restructuring designed to simplify operations, enhance profitability, and drive growth.
- Focus on meeting customer needs and producing solutions in the rapidly evolving energy and industrial markets.
Challenges Ahead
- Macro outlook has grown increasingly uncertain due to strong inflationary pressures.
- Rising interest rate environment.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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