Posted by OilVoice Press - OilVoice
LONDON & HOUSTON--(BUSINESS WIRE)--Jul. 20, 2018-- Baker Hughes, a GE company (NYSE: BHGE) ("BHGE" or the "Company") announced results today for the second quarter of 2018.
|Three Months Ended|
|June 30,||March 31,||June 30,||Year-over-|
(in millions except per share amounts)
|Operating income (loss)||78||(41||)||(145||)||F||F|
|Adjusted operating income (non-GAAP)*||289||228||119||27%||F|
|Net income (loss) attributable to BHGE||(19||)||70|
|Adjusted net income (non-GAAP) attributable to BHGE*||41||38|
|EPS attributable to Class A shareholders||(0.05||)||0.17|
|Adjusted EPS (non-GAAP) attributable to Class A shareholders*||0.10||0.09|
|Cash flow from operating activities||139||294|
|Free cash flow (non-GAAP)*||(22||)||226|
*These are non-GAAP financial measures. See section entitled "Charges and Credits" for a reconciliation from GAAP.
"F" is used in most instances when variance is above 100%. Additionally, "U" is used in most instances when variance is below (100)%.
Prior period information has been restated for the adoption of Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers and Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Postretirement Benefit Cost, which we adopted on January 1, 2018.
“Twelve months ago, we created BHGE to deliver differentiated solutions for our customers and provide a unique investment opportunity for our shareholders. Since closing, we have executed on the integration, secured important commercial wins and delivered superior performance for our customers. We also made progress on our priorities of gaining market share, increasing margin rates and delivering strong free cash flow," said Lorenzo Simonelli, BHGE Chairman and Chief Executive Officer.
“In the second quarter, we delivered $6.0 billion in orders and $5.5 billion in revenues. Adjusted operating income in the quarter was $289 million. In the first half of the year we delivered $204 million of free cash flow. We delivered $189 million of synergies in the quarter and are on track to achieve the $700 million target for the year.
“In Oilfield Services (OFS), margins were up more than 550 basis points year-over-year. We remain committed to gaining share in key markets and product lines, and delivering high quality service to our customers. In the second quarter, we outperformed the market in the North Sea, Sub Saharan Africa and Asia Pacific. Completions and Artificial Lift product lines both showed strong growth, and in North America we grew Drilling Services well in excess of the rig count.
“In our Oilfield Equipment (OFE) segment, we had our largest orders quarter since 2015, winning significant subsea production awards across six different projects. Our book-to-bill ratio in the quarter was 1.7, a clear sign of our ability to win big projects with a collaborative partnership approach and our leading gas technology.
“In our Turbomachinery & Process Solutions (TPS) segment, our priorities are centered on LNG leadership, services capability, growth in the industrial space and cost-out. In the quarter, we secured important commercial wins in LNG and on-and-offshore production, two of the largest drivers of our TPS segment. We also advanced our cost-out initiatives and expect these to materialize into improved margins in 2019.
“In our Digital Solutions (DS) segment, strong execution led to solid revenue growth and over 450 basis points of margin expansion year-over-year. We are seeing increased interest from customers in our sensor, inspection and software offerings, and we are gaining traction with our Predictive Corrosion Management software to support the growing corrosion market.
“The macro outlook continues to be favorable. North American production is increasing as operators grow rig and well counts, and we are seeing signs of increasing international activity in some geomarkets. Our portfolio mix positions us well for short and long-term growth as the market improves and the next wave of customer projects come into view.
“We made a tremendous amount of progress in our first year as BHGE and our team has delivered some great wins, but we know there is more work to do. I would like to thank the employees of BHGE for their hard work and dedication over the past year. Going forward, we remain focused on what matters most - delivering for our customers and for our shareholders,” concluded Simonelli.
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