Baker Hughes Company Announces First Quarter 2020 Results
- Orders of
$5.5 billion for the quarter, down 20% sequentially and down 3% year-over-year - Revenue of
$5.4 billion for the quarter, down 15% sequentially and down 3% year-over-year - GAAP operating loss of
$16,059 million for the quarter, down sequentially and year-over-year - Adjusted operating income (a non-GAAP measure) of
$240 million for the quarter, down 56% sequentially and down 12% year-over-year - GAAP diluted loss per share of
$(15.64) for the quarter which included$15.75 per share of adjusting items. Adjusted diluted earnings per share (a non-GAAP measure) were$0.11 . - Cash flows generated from operating activities were
$478 million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was$152 million .
The Company presents its financial results in accordance with GAAP. However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see Tables 1a, 1b and 1c in the section entitled "Charges & Credits" for a reconciliation of GAAP to non-GAAP financial measures. Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.
|
|
Three Months Ended |
|
Variance |
|||||||||||
|
(in millions except per share amounts) |
2020 |
2019 |
2019 |
|
Sequential |
Year-over- year |
||||||||
|
Orders |
$ |
5,532 |
|
$ |
6,944 |
|
$ |
5,693 |
|
|
(20 |
)% |
(3 |
)% |
|
Revenue |
5,425 |
|
6,347 |
|
5,615 |
|
|
(15 |
)% |
(3 |
)% |
|||
|
Operating income (loss) |
(16,059 |
) |
331 |
|
176 |
|
|
U |
|
U |
|
|||
|
Adjusted operating income (non-GAAP) |
240 |
|
546 |
|
273 |
|
|
(56 |
)% |
(12 |
)% |
|||
|
Net income (loss) attributable to Baker Hughes |
(10,210 |
) |
48 |
|
32 |
|
|
U |
|
U |
|
|||
|
Adjusted net income (non-GAAP) attributable to Baker Hughes |
70 |
|
179 |
|
76 |
|
|
(61 |
)% |
(8 |
)% |
|||
|
EPS attributable to Class A shareholders |
(15.64 |
) |
0.07 |
|
0.06 |
|
|
U |
|
U |
|
|||
|
Adjusted EPS (non-GAAP) attributable to Class A shareholders |
0.11 |
|
0.27 |
|
0.15 |
|
|
(59 |
)% |
(27 |
)% |
|||
|
Cash flow from operating activities |
478 |
|
1,357 |
|
(184 |
) |
|
(65 |
)% |
F |
|
|||
|
Free cash flow (non-GAAP) |
152 |
|
1,053 |
|
(419 |
) |
|
(86 |
)% |
F |
|
|||
|
"F" is used in most instances when variance is above 100%. Additionally, "U" is used in most instances when variance is below (100)%. |
“Despite a volatile macro environment driven by a significant decline in oil prices and the COVID-19 pandemic, we produced solid results in our Turbomachinery & Process Solutions (TPS) and Oilfield Services (OFS) businesses and generated over
“During the first quarter, the macro environment changed rapidly. The sudden demand shock from COVID-19 combined with rising global oil supply drove a 67% decline in oil prices during the first quarter. Looking forward, the outlook for oil and gas demand and supply appears equally uncertain, and it will largely be driven by the pace of economic recovery from the COVID-19 pandemic and the supply response that ultimately materializes.
“To navigate this challenging environment, we have taken decisive actions in an effort to cut costs, accelerate structural changes, and deploy technology and optimize processes that can lower costs for our customers. This includes reducing capital expenditures by more than 20% versus 2019, executing a restructuring plan to right size our operations for anticipated activity levels and market conditions, as well as continuing to deliver on our portfolio evolution strategy. While accelerated, these actions are in line with broader changes that we outlined previously to improve margins and operating efficiency.
“As we look forward, Baker Hughes’ portfolio remains uniquely positioned to navigate the challenging market environment. Our strong backlog of longer-cycle projects and aftermarket services provides greater stability as our shorter-cycle businesses encounter pressure from the dramatic declines in activity. We remain committed to delivering critical technology that helps our customers operate more efficiently, lowering their cost and improving their outcomes,” concluded Simonelli.
Quarter Highlights
Despite unprecedented market challenges, the Company continued to execute on its priorities in the quarter. The early stages of this downturn have also encouraged innovative, cost-saving technologies and new ways of working with a growing number of customers around the world.
Supporting our Customers
In the first quarter, Baker Hughes’ OFS segment delivered 60% of its global drilling services jobs remotely and 150 remote wireline jobs across five regions. In
In another example, the TPS segment helped move our customer’s project forward in the quarter by conducting the first remote string test, a critical process required to ensure the engineering, functionality and performance of the Company’s turbomachinery equipment prior to installation. TPS performed a virtual string test on the first compression train for Venture Global’s
Executing on Priorities
Despite challenged market dynamics, OFS continued to strengthen its position in important international markets, including several large multi-year drilling and completions contracts for projects across the
In addition, OFS was awarded a multi-year artificial lift contract by a major global operator in Sub-
Baker Hughes’ Oilfield Equipment (OFE) segment also continued to gain traction in the quarter with Subsea Connect solutions, securing several contracts with Equinor in
Baker Hughes' TPS segment continued the momentum in its offshore production business in the quarter, securing six contracts to supply turbomachinery equipment for three floating production, storage and offloading (FPSO) units offshore
Leading with Innovation
Baker Hughes remains committed to innovation and being at the forefront of the energy transition. In the first quarter, the Company continued to drive advancements in energy technology to support customers in their goals. In February, Baker Hughes and C3.ai announced the second jointly developed application from the BakerHughesC3.ai joint venture alliance, called BHC3 Production Optimization. The AI-based solution allows well operators to view real-time production data, better project future production, and help optimize operations for improved oil and gas production rates.
Amidst the COVID-19 pandemic, the Company has also supported communities where it operates globally. Baker Hughes has been working collaboratively with partners to identify, test and now safely deliver 3D-printed parts critical for protective gear needed by first responders. Baker Hughes is committed to this effort to apply the highest and best use of unique 3D-printing capabilities. All design time, labor and parts are being donated by Baker Hughes.
In addition, Baker Hughes’ Digital Solutions (DS) segment continues to support customers in a number of end markets outside of oil and gas, including the medical field. DS’ Waygate Technologies business leveraged its industrial X-ray and CT systems to work with digital manufacturing company 3D Systems to develop open-source CAD files for previously unproduceable ventilator parts, allowing additive manufacturers to produce ventilators faster than typical production methods.
|
Consolidated Results by Reporting Segment |
||||||||||||||
|
Consolidated Orders by Reporting Segment |
||||||||||||||
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Consolidated segment orders |
2020 |
2019 |
2019 |
|
Sequential |
Year-over- year |
||||||||
|
Oilfield Services |
$ |
3,147 |
|
$ |
3,284 |
|
$ |
2,997 |
|
|
(4 |
)% |
5 |
% |
|
Oilfield Equipment |
492 |
|
1,104 |
|
766 |
|
|
(55 |
)% |
(36 |
)% |
|||
|
Turbomachinery & Process Solutions |
1,394 |
|
1,910 |
|
1,271 |
|
|
(27 |
)% |
10 |
% |
|||
|
Digital Solutions |
500 |
|
645 |
|
659 |
|
|
(23 |
)% |
(24 |
)% |
|||
|
Total |
$ |
5,532 |
|
$ |
6,944 |
|
$ |
5,693 |
|
|
(20 |
)% |
(3 |
)% |
Orders for the quarter were
Year-over-year, the decline in orders was driven by Digital Solutions and Oilfield Equipment, partially offset by year-over-year growth in Turbomachinery & Process Solutions and Oilfield Services. Year-over-year equipment orders were down 4% and service orders were down 2%.
The Company's total book-to-bill ratio in the quarter was 1.0; the equipment book-to-bill ratio in the quarter was 1.0.
Remaining Performance Obligations (RPO) in the first quarter ended at
|
Consolidated Revenue by Reporting Segment |
||||||||||||||
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Consolidated segment revenue |
2020 |
2019 |
2019 |
|
Sequential |
Year-over- year |
||||||||
|
Oilfield Services |
$ |
3,139 |
|
$ |
3,292 |
|
$ |
2,986 |
|
|
(5 |
)% |
5 |
% |
|
Oilfield Equipment |
712 |
|
765 |
|
735 |
|
|
(7 |
)% |
(3 |
)% |
|||
|
Turbomachinery & Process Solutions |
1,085 |
|
1,632 |
|
1,302 |
|
|
(33 |
)% |
(17 |
)% |
|||
|
Digital Solutions |
489 |
|
659 |
|
592 |
|
|
(26 |
)% |
(17 |
)% |
|||
|
Total |
$ |
5,425 |
|
$ |
6,347 |
|
$ |
5,615 |
|
|
(15 |
)% |
(3 |
)% |
Revenue for the quarter was
Compared to the same quarter last year, revenue was down 3%. The primary driver of the decline was lower market activity.
|
Consolidated Operating Income by Reporting Segment |
||||||||||||||
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Segment operating income |
2020 |
2019 |
2019 |
|
Sequential |
Year-over- year |
||||||||
|
Oilfield Services |
$ |
206 |
|
$ |
235 |
|
$ |
176 |
|
|
(12 |
)% |
17 |
% |
|
Oilfield Equipment |
(8 |
) |
16 |
|
12 |
|
|
U |
|
U |
|
|||
|
Turbomachinery & Process Solutions |
134 |
|
305 |
|
118 |
|
|
(56 |
)% |
13 |
% |
|||
|
Digital Solutions |
29 |
|
109 |
|
68 |
|
|
(73 |
)% |
(57 |
)% |
|||
|
Total segment operating income |
361 |
|
665 |
|
373 |
|
|
(46 |
)% |
(3 |
)% |
|||
|
Corporate |
(122 |
) |
(118 |
) |
(100 |
) |
|
(3 |
)% |
(21 |
)% |
|||
|
|
(14,773 |
) |
— |
— |
|
|
U |
|
U |
|
||||
|
Inventory impairment |
(160 |
) |
— |
— |
|
|
U |
|
U |
|
||||
|
Restructuring, impairment & other charges |
(1,325 |
) |
(159 |
) |
(62 |
) |
|
U |
|
U |
|
|||
|
Separation and merger related |
(41 |
) |
(57 |
) |
(34 |
) |
|
(28 |
)% |
22 |
% |
|||
|
Operating income (loss) |
(16,059 |
) |
331 |
|
176 |
|
|
U |
|
U |
|
|||
|
Adjusted operating income* |
$ |
240 |
|
$ |
546 |
|
$ |
273 |
|
|
(56 |
)% |
(12 |
)% |
|
*Non-GAAP measure. |
|
"U" is used in most instances when variance is below (100)%. |
On a GAAP basis, operating loss for the first quarter of 2020 was
Operating income for the quarter was negatively impacted by approximately
Adjusted operating income (a non-GAAP measure) for the first quarter of 2020 was
Depreciation and amortization for the first quarter of 2020 was
Corporate costs were
Other Financial Items
Income tax expense in the first quarter of 2020 was
GAAP diluted loss per share was
Cash flow from operating activities were
Capital expenditures, net of proceeds from disposal of assets, were
Results by Reporting Segment
The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.
|
Oilfield Services |
||||||||||||||
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Oilfield Services |
2020 |
2019 |
2019 |
|
Sequential |
Year-over- year |
||||||||
|
Revenue |
$ |
3,139 |
|
$ |
3,292 |
|
$ |
2,986 |
|
|
(5 |
)% |
5 |
% |
|
Operating income |
$ |
206 |
|
$ |
235 |
|
$ |
176 |
|
|
(12 |
)% |
17 |
% |
|
Operating income margin |
6.6 |
% |
7.1 |
% |
5.9 |
% |
|
(0.6 |
)pts |
0.7 |
pts |
|||
Oilfield Services (OFS) revenue of
Segment operating income before tax for the quarter was
|
Oilfield Equipment |
||||||||||||||
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Oilfield Equipment |
2020 |
2019 |
2019 |
|
Sequential |
Year-over- year |
||||||||
|
Orders |
$ |
492 |
|
$ |
1,104 |
|
$ |
766 |
|
|
(55 |
)% |
(36 |
)% |
|
Revenue |
$ |
712 |
|
$ |
765 |
|
$ |
735 |
|
|
(7 |
)% |
(3 |
)% |
|
Operating income (loss) |
$ |
(8 |
) |
$ |
16 |
|
$ |
12 |
|
|
U |
|
U |
|
|
Operating income margin |
(1.1 |
)% |
2.1 |
% |
1.6 |
% |
|
(3.2 |
)pts |
(2.7 |
)pts |
|||
Oilfield Equipment (OFE) orders were down
OFE revenue of
Segment operating loss before tax for the quarter was
|
Turbomachinery & Process Solutions |
||||||||||||||
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Turbomachinery & Process Solutions |
2020 |
2019 |
2019 |
|
Sequential |
Year-over- year |
||||||||
|
Orders |
$ |
1,394 |
|
$ |
1,910 |
|
$ |
1,271 |
|
|
(27 |
)% |
10 |
% |
|
Revenue |
$ |
1,085 |
|
$ |
1,632 |
|
$ |
1,302 |
|
|
(33 |
)% |
(17 |
)% |
|
Operating income |
$ |
134 |
|
$ |
305 |
|
$ |
118 |
|
|
(56 |
)% |
13 |
% |
|
Operating income margin |
12.3 |
% |
18.7 |
% |
9.1 |
% |
|
(6.4 |
)pts |
3.3 |
pts |
|||
Turbomachinery & Process Solutions (TPS) orders were up 10% year-over-year. Equipment orders were up 8% and service orders were up 11%.
TPS revenue of
Segment operating income before tax for the quarter was
|
Digital Solutions |
||||||||||||||
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Digital Solutions |
2020 |
2019 |
2019 |
|
Sequential |
Year-over- year |
||||||||
|
Orders |
$ |
500 |
|
$ |
645 |
|
$ |
659 |
|
|
(23 |
)% |
(24 |
)% |
|
Revenue |
$ |
489 |
|
$ |
659 |
|
$ |
592 |
|
|
(26 |
)% |
(17 |
)% |
|
Operating income |
$ |
29 |
|
$ |
109 |
|
$ |
68 |
|
|
(73 |
)% |
(57 |
)% |
|
Operating income margin |
6.0 |
% |
16.6 |
% |
11.5 |
% |
|
(10.5 |
)pts |
(5.5 |
)pts |
|||
Digital Solutions (DS) orders were down 24% year-over-year, driven primarily by lower order intake across all businesses driven by COVID-19.
DS revenue of
Segment operating income before tax for the quarter was
Charges & Credits
|
Table 1a. Reconciliation of GAAP and Adjusted Operating Income/(Loss) |
|||||||||
|
|
Three Months Ended |
||||||||
|
(in millions) |
2020 |
2019 |
2019 |
||||||
|
Operating income (loss) (GAAP) |
$ |
(16,059 |
) |
$ |
331 |
|
$ |
176 |
|
|
Separation, merger & integration related |
41 |
|
57 |
|
34 |
|
|||
|
|
14,773 |
|
— |
|
— |
|
|||
|
Restructuring, impairment & other |
1,325 |
|
159 |
|
62 |
|
|||
|
Inventory impairment |
160 |
|
— |
|
— |
|
|||
|
Total operating income adjustments |
16,299 |
|
216 |
|
97 |
|
|||
|
Adjusted operating income (non-GAAP) |
$ |
240 |
|
$ |
546 |
|
$ |
273 |
|
|
Table 1a reconciles operating income (loss), which is the directly comparable financial result determined in accordance with Generally Accepted Accounting Principles (GAAP), to adjusted operating income (a non-GAAP financial measure). Adjusted operating income excludes the impact of certain identified items. |
|
Table 1b. Reconciliation of GAAP and Non-GAAP Net Income |
|||||||||
|
|
Three Months Ended |
||||||||
|
(in millions, except per share amounts) |
2020 |
2019 |
2019 |
||||||
|
Net income (loss) attributable to Baker Hughes (GAAP) |
$ |
(10,210 |
) |
$ |
48 |
|
$ |
32 |
|
|
Total operating income adjustments (identified items) |
16,299 |
|
216 |
|
97 |
|
|||
|
Tax on total adjustments |
(84 |
) |
(9 |
) |
(9 |
) |
|||
|
Total adjustments, net of income tax |
16,215 |
|
207 |
|
88 |
|
|||
|
Less: adjustments attributable to noncontrolling interests |
5,935 |
|
76 |
|
44 |
|
|||
|
Adjustments attributable to Baker Hughes |
10,280 |
|
131 |
|
44 |
|
|||
|
Adjusted net income attributable to Baker Hughes (non-GAAP) |
$ |
70 |
|
$ |
179 |
|
$ |
76 |
|
|
|
|
|
|
||||||
|
|
|
|
|
||||||
|
Denominator: |
|
|
|
||||||
|
Weighted-average shares of Class A common stock outstanding diluted |
654 |
|
653 |
|
516 |
|
|||
|
Adjusted earnings per Class A share— diluted (non-GAAP) |
$ |
0.11 |
|
$ |
0.27 |
|
$ |
0.15 |
|
|
Table 1b reconciles net income (loss) attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes (a non-GAAP financial measure). Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items. |
|
Table 1c. Reconciliation of Cash Flow From Operating Activities to Free Cash Flow |
|||||||||
|
|
Three Months Ended |
||||||||
|
(in millions) |
2020 |
2019 |
2019 |
||||||
|
Cash flow from operating activities (GAAP) |
$ |
478 |
|
$ |
1,357 |
|
$ |
(184 |
) |
|
Add: cash used in capital expenditures, net of proceeds from disposal of assets |
(325 |
) |
(304 |
) |
(235 |
) |
|||
|
Free cash flow (non-GAAP) |
$ |
152 |
|
$ |
1,053 |
|
$ |
(419 |
) |
|
Table 1c reconciles net cash flows from operating activities, which is the directly comparable financial result determined in accordance with GAAP, to free cash flow (a non-GAAP financial measure). Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets. |
|
|
|
Management provides non-GAAP financial measures in Tables 1a, 1b, and 1c because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance and liquidity, and that these measures may be used by investors to make informed investment decisions. |
|
Financial Tables (GAAP) Condensed Consolidated Statements of Income (Loss) (Unaudited) |
||||||
|
|
Three Months Ended |
|||||
|
(In millions, except per share amounts) |
2020 |
2019 |
||||
|
Revenue |
$ |
5,425 |
|
$ |
5,615 |
|
|
Costs and expenses: |
|
|
||||
|
Cost of revenue |
4,670 |
|
4,639 |
|
||
|
Selling, general and administrative |
675 |
|
704 |
|
||
|
|
14,773 |
|
— |
|
||
|
Restructuring, impairment and other |
1,325 |
|
62 |
|
||
|
Separation and merger related |
41 |
|
34 |
|
||
|
Total costs and expenses |
21,484 |
|
5,439 |
|
||
|
Operating income (loss) |
(16,059 |
) |
176 |
|
||
|
Other non operating income (loss), net |
25 |
|
21 |
|
||
|
Interest expense, net |
(59 |
) |
(59 |
) |
||
|
Income (loss) before income taxes |
(16,093 |
) |
138 |
|
||
|
Provision for income taxes |
(5 |
) |
(67 |
) |
||
|
Net income (loss) |
(16,098 |
) |
71 |
|
||
|
Less: Net income (loss) attributable to noncontrolling interests |
(5,888 |
) |
39 |
|
||
|
Net income (loss) attributable to |
$ |
(10,210 |
) |
$ |
32 |
|
|
|
|
|
||||
|
Per share amounts: |
|
|||||
|
Basic and diluted income (loss) per Class A common share |
$ |
(15.64 |
) |
$ |
0.06 |
|
|
|
|
|
||||
|
Weighted average shares: |
|
|
||||
|
Class A basic |
653 |
|
515 |
|
||
|
Class A diluted |
653 |
|
516 |
|
||
|
|
|
|
||||
|
Cash dividend per Class A common share |
$ |
0.18 |
|
$ |
0.18 |
|
|
Condensed Consolidated Statements of Financial Position (Unaudited) |
||||||
|
(In millions) |
|
|
||||
|
ASSETS |
||||||
|
Current Assets: |
|
|
||||
|
Cash and cash equivalents (1) |
$ |
3,010 |
|
$ |
3,249 |
|
|
Current receivables, net |
6,148 |
|
6,416 |
|
||
|
Inventories, net |
4,534 |
|
4,608 |
|
||
|
All other current assets |
961 |
|
949 |
|
||
|
Total current assets |
14,653 |
|
15,222 |
|
||
|
Property, plant and equipment, less accumulated depreciation |
5,997 |
|
6,240 |
|
||
|
|
5,878 |
|
20,690 |
|
||
|
Other intangible assets, net |
4,576 |
|
5,381 |
|
||
|
Contract and other deferred assets |
1,826 |
|
1,881 |
|
||
|
All other assets |
4,299 |
|
3,955 |
|
||
|
Total assets (1) |
$ |
37,229 |
|
$ |
53,369 |
|
|
LIABILITIES AND EQUITY |
||||||
|
Current Liabilities: |
|
|
||||
|
Accounts payable |
$ |
3,991 |
|
$ |
4,268 |
|
|
Short-term debt and current portion of long-term debt (1) |
210 |
|
321 |
|
||
|
Progress collections and deferred income |
3,196 |
|
2,870 |
|
||
|
All other current liabilities |
2,744 |
|
2,555 |
|
||
|
Total current liabilities |
10,141 |
|
10,014 |
|
||
|
Long-term debt |
6,285 |
|
6,301 |
|
||
|
Liabilities for pensions and other employee benefits |
1,025 |
|
1,079 |
|
||
|
All other liabilities |
1,793 |
|
1,476 |
|
||
|
Equity |
17,985 |
|
34,499 |
|
||
|
Total liabilities and equity |
$ |
37,229 |
|
$ |
53,369 |
|
|
(1) |
Total assets include |
|
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||
|
|
Three Months Ended |
|||||
|
(In millions) |
2020 |
2019 |
||||
|
Cash flows from operating activities: |
|
|
||||
|
Net income (loss) |
$ |
(16,098 |
) |
$ |
71 |
|
|
Adjustments to reconcile net income (loss) to net cash flows from operating activities: |
|
|
||||
|
Depreciation and amortization |
355 |
|
350 |
|
||
|
|
14,773 |
|
— |
|
||
|
Other asset impairments |
1,103 |
|
— |
|
||
|
Working capital |
183 |
|
(394 |
) |
||
|
Other operating items, net |
162 |
|
(211 |
) |
||
|
Net cash flows from (used in) operating activities |
478 |
|
(184 |
) |
||
|
Cash flows from investing activities: |
|
|
||||
|
Expenditures for capital assets, net of proceeds from disposal of assets |
(325 |
) |
(235 |
) |
||
|
Other investing items, net |
7 |
|
(21 |
) |
||
|
Net cash flows used in investing activities |
(318 |
) |
(256 |
) |
||
|
Cash flows from financing activities: |
|
|
||||
|
Net repayment of borrowings |
(115 |
) |
(48 |
) |
||
|
Dividends paid |
(118 |
) |
(93 |
) |
||
|
Distributions to |
(68 |
) |
(94 |
) |
||
|
Other financing items, net |
(26 |
) |
3 |
|
||
|
Net cash flows used in financing activities |
(327 |
) |
(232 |
) |
||
|
Effect of currency exchange rate changes on cash and cash equivalents |
(72 |
) |
22 |
|
||
|
Decrease in cash and cash equivalents |
(239 |
) |
(650 |
) |
||
|
Cash and cash equivalents, beginning of period |
3,249 |
|
3,723 |
|
||
|
Cash and cash equivalents, end of period |
$ |
3,010 |
|
$ |
3,073 |
|
Supplemental Financial Information
Supplemental financial information can be found on the Company’s website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.
Conference Call and Webcast
The Company has scheduled an investor conference call to discuss management’s outlook and the results reported in today’s earnings announcement. The call will begin at
Forward-Looking Statements
This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a “forward-looking statement”). The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “estimate,” “project,” “foresee,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “potential,” “would,” “may,” “probable,” “likely,” and similar expressions, and the negative thereof, are intended to identify forward-looking statements. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s annual report on Form 10-K for the annual period ended
Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.
These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:
Restructuring - Our restructuring plans may not be successful and achieve the expected result; continued deterioration of market conditions, whether due to the continued spread of COVID-19 or other events could result in further restructuring costs and impairments.
COVID-19 - The continued spread of the COVID-19 virus and the continuation of the measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place orders, and shutdowns, and the related uncertainties.
GE Separation - The failure to successfully eliminate dependencies on
Economic and political conditions - the impact of worldwide economic conditions; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
Orders and RPO - our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
Oil and gas market conditions - the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities;
Terrorism and geopolitical risks - war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or -consuming regions; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.
About Baker Hughes:
View source version on businesswire.com: https://www.businesswire.com/news/home/20200422005234/en/
Investor Relations
+1 281-809-9088
investor.relations@bakerhughes.com
Media Relations
+1 910-515-7873
Thomas.millas@bakerhughes.com
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