Baker Hughes Q4 2022 Earnings Report
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
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.