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Dec 31, 2022
Baker Hughes Q4 2022 Earnings Report
Baker Hughes reported strong Q4 2022 results with record orders and increased revenue and profitability.
Key Takeaways
Baker Hughes announced strong results for the fourth quarter of 2022, with record orders of $8.0 billion, a revenue of $5.9 billion, and GAAP operating income of $663 million. The company saw continued margin improvement in Oilfield Services & Equipment (OFSE) and a strong level of orders for Industrial & Energy Technology (IET).
Record orders of $8.0 billion, up 32% sequentially and 20% year-over-year.
Revenue of $5.9 billion, up 10% sequentially and 8% year-over-year.
GAAP operating income of $663 million, up $394 million sequentially and 15% year-over-year.
Adjusted earnings per share (non-GAAP) was $0.38.
Baker Hughes
Baker Hughes
Baker Hughes Revenue by Segment
Revenue by Segment
Oilfield Services Revenue
CapyFin.com Forward Guidance
Baker Hughes anticipates a challenging global economy in 2023 due to inflationary pressures and tightening monetary conditions, but maintains a positive outlook for the energy sector due to persistent supply shortages.
Positive Outlook
- Well positioned to capitalize on growth opportunities across both business segments.
- Focused on optimizing corporate structure and transforming the organization.
- Continuing to develop a portfolio of new energy technologies.
- Generating strong free cash flow.
- Returning 60 to 80% of free cash flow to shareholders through dividends and share buybacks.
Challenges Ahead
- Global economy expected to experience challenges under the weight of inflationary pressures and tightening monetary conditions.
- Recessionary pressures in some of the world’s largest economies.
- Years of under investment being amplified by recent geopolitical factors.
- Global spare capacity for oil and gas has deteriorated.
- Cost inflation in both segments and higher equipment mix in Industrial & Energy Technology.