Baker Hughes (BKR) Q1 2024 Results – Orders Down, Revenue Up, Net Income Drops

Baker Hughes Company (BKR) has released its first-quarter 2024 results, showcasing a mix of positive and challenging developments across various financial metrics.

In terms of orders, the company reported a total of $6.5 billion, marking a 5% sequential decrease and a 14% year-over-year decline. Revenue, on the other hand, stood at $6.4 billion, reflecting a 6% sequential drop but a 12% increase compared to the same period last year. Notably, net income attributable to the company was $455 million, up 4% sequentially but down 21% year-over-year.

Adjusted EBITDA reached $943 million, showing a 14% sequential decrease but a substantial 21% year-over-year growth. The company also reported cash flows from operating activities of $784 million, representing a 16% sequential decrease but a significant 70% year-over-year increase. Free cash flow was $502 million, down 21% sequentially but up an impressive 155% year-over-year.

The company's returns to shareholders amounted to $368 million, including $158 million in share repurchases. Additionally, the quarterly dividend was increased by one penny to 21 cents, reflecting an 11% year-over-year rise.

Segment-wise, the Oilfield Services & Equipment (OFSE) segment saw a decrease in orders, revenue, and operating income margin sequentially. However, there was a notable increase in operating income and revenue year-over-year. The Industrial & Energy Technology (IET) segment also faced challenges, experiencing declines in orders, revenue, operating income margin, and EBITDA margin both sequentially and year-over-year.

It's important to note that the company's total book-to-bill ratio in the quarter was 1.0, indicating that it received as many new orders as it fulfilled during the period. Additionally, the company's remaining performance obligations (RPO) decreased to $32.7 billion, with the RPO for IET accounting for the majority at $29.3 billion.

The press release also highlighted specific accomplishments in various product lines and geographic regions, such as significant awards in gas technology equipment and services, as well as the company's performance in North America, Latin America, Europe, CIS, Sub-Saharan Africa, and the Middle East/Asia.

The market has reacted to these announcements by moving the company's shares 2.2% to a price of $33.73. For more information, read the company's full 8-K submission here.

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