Robust demand for LNG-related providers drove Baker Hughes’ third-quarter monetary efficiency above expectations, with the corporate reporting a 23% annual enhance in orders regardless of a dip in web earnings of 20% on the 12 months.
Free money move rose as nicely, from $239 million on the finish of June to $699 million on the finish of September, and money move from working actions rose from $510 million on the finish of June to $929 million on the finish of September, though each money move figures had been down on an annual foundation.
Pure gasoline was the driving force of the oilfield service main, which has been persistently rising its publicity to that section amid robust demand projections and a development momentum pushed by the brand new U.S. administration. In truth, Baker Hughes attributed most of its monetary success final quarter to gas-related enterprise actions.
It boasted an order backlog of $4 billion for its Industrial & Power Expertise division, which is principally busy in gasoline and LNG infrastructure and gear. This was solely the third time within the historical past of the corporate that the IET backlog was value $4 billion, Baker Hughes mentioned. The overall dimension of the corporate’s order backlog surged to an all-time excessive of $32.1 billion by the top of September. The corporate highlighted its work for the Rio Grande LNG facility and the Port Arthur Part 2 improvement.
As within the second quarter, Baker Hughes famous a continued slowdown in oilfield exercise, the place orders elevated however revenues and earnings earlier than curiosity, tax, depreciation and amortization fell on an annual foundation.
“Whereas OFSE margins softened, reflecting the broader macro backdrop, IET delivered one other quarter of robust efficiency, driving consolidated Adjusted EBITDA margins increased year-over-year. This constructive margin development highlights the resilience of our portfolio and the muse we have constructed by means of disciplined execution,” chief government Lorenzo Simonelli mentioned.
By Irina Slav for Oilprice.com
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