Posted by OilVoice Press - OilVoice
|Three Months Ended|
|(in millions except per share amounts)|
|Adjusted operating income (non-GAAP)*||303||240||361||26||%||(16||)%|
|Net loss attributable to BHGE||(29||)||(104||)||N/A||72||%||N/A|
|Adjusted net earnings (non-GAAP) attributable to BHGE*||65||23||N/A||F||N/A|
|EPS attributable to Class A shareholders||(0.07||)||(0.24||)|
|Adjusted EPS (non-GAAP)* attributable to Class A shareholders||0.15||0.05||N/A||F||N/A|
|Cash flow used in operations||(215||)||(195||)||N/A||(10||)%||N/A|
|Free cash flow (non-GAAP)*||(367||)||(405||)||N/A||9||%||N/A|
*These are non-GAAP financial measures. See section entitled "Charges and Credits" for a reconciliation from GAAP.
“In the first 180 days as BHGE, we have made strong progress on our integration efforts and aligning our team to the priorities of growing market share, improving margins and generating more cash. We secured important customer wins in a market environment that continues to be uncertain. Our team continues to execute on critical integration steps as planned, delivering approximately $80 million of synergies in the quarter,” said Lorenzo Simonelli, BHGE chairman and chief executive officer.
“For the fourth quarter, we delivered $5.8 billion in orders and $5.8 billion in revenues. We saw growth in our shorter-cycle businesses and declines in our longer-cycle businesses. Total year 2017 orders were $22 billion on a combined business basis. Orders in Turbomachinery & Process Solutions were up slightly versus 2016 despite the continued low demand for new LNG projects, while the Digital Solutions and Oilfield Equipment businesses grew orders substantially. For the total year 2017, we delivered revenues of $21.9 billion on a combined business basis.
“In our Oilfield Services segment, we achieved solid growth driven by our well construction product lines in North America, the Middle East and Latin America. All product lines grew in North America, despite the rig count being down versus the third quarter. International activity remains muted with some pockets of healthy activity. Asia Pacific rig count saw an increase in the fourth quarter after having been flat much of the year, while Latin America increased steadily through the quarter. The Middle Eastheld stable for the year as rig count growth in Iraq and the UAE offset declines in other markets.
"In our Oilfield Equipment segment, the subsea market remains challenging with low activity levels and pricing challenges. We expect tree awards to continue to grow in 2018, though at a slower rate than in 2017 and with totals still more than 50% below prior cycle peaks. We continue to expect offshore activity to be muted in the short term.
"In our Turbomachinery & Process Solutions segment, on- and offshore production driven demand is improving, however new LNG activity is muted as the market remains oversupplied. Downstream application driven demand continues to grow as refinery utilization increases and petrochemical demand rises.
"In our Digital Solutions segment, we see continued growth both for our measurement and controls business lines as well as our Digital offerings. Customers are eager to explore the opportunity to unlock value through better connectivity and we're making great progress in using existing active projects to showcase our value proposition.
“Overall, we continue to see improvement in activity as early indications of customer capital spending in 2018 are encouraging, particularly for our shorter cycle businesses. International activity is stabilizing, and we are seeing signs of activity increase both in the volume and size of tenders for new work as customers feel more confident about their operating costs and commodity price stability. The subsea market continues to be challenging and activity remains low, with prices continuing to be pressured. We expect activity in the LNG space to increase as customers position to make new capacity available in 2022 and beyond.
“Our strategy is well suited to market conditions and customer needs. Reducing product and service cost, integrating equipment and service modules, and a focus on outcomes are all aligned with the goal of creating value for customers and for BHGE.”
Visit source siteBaker HughesDEAnnual Results2017