Baker Hughes reports 3Q flat earnings but increased orders

Houston-based Baker Hughes Co. reported third quarter 2019 earnings totaled $5.9 billion but were down two percent compared to the previous quarter. But the earnings were still up 4 percent compared to the third quarter of 2018.

Orders for the third quarter totaled $7.8 billion, up 19 percent from the second quarter and up 35 percent compared to a year earlier. Operating income was $297 million or 10 percent higher than the second quarter and 5 percent more than the third quarter of last year.

“We delivered a solid third quarter with strong growth in Turbomachinery and Oilfield Equipment orders, and continued margin improvement in our Oilfield Services business. Overall, we are very pleased with our execution as a team, and we believe Baker Hughes is firmly on the right path financially, operationally, and strategically,” said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

Baker Hughes’ OFS segment secured wins in key international markets this quarter. The company signed a large agreement with Saudi Aramco to provide completions, liner hangers, well intervention equipment, and associated services for a number of key projects over the next five years. Baker Hughes also won a large contract to provide cementing, coiled tubing, and stimulation services across multiple fields.

In Asia, a major operator awarded OFS a seven-year contract extension to provide drilling and wireline services, and a five-year extension to provide completions and well intervention services both onshore and offshore Brunei. Baker Hughes’ strong safety performance, service quality, and flawless execution for the last four years on the project led to this extension.

In North America, a major operator selected OFS as its sole artificial lift provider in the Permian Basin. Under the contract, Baker Hughes will deliver artificial lift services, including ESPs, for 250 wells.

In the quarter, Baker Hughes’ OFE segment gained traction with its Subsea Connect approach, securing a number of wins in important markets globally. This includes an award from Vår Energi to provide 16 subsea production systems for the Balder X on the Norwegian Continental Shelf (NCS). Baker Hughes will deliver a comprehensive solution to extend the production of the Jotun A floating production offloading and storage (FPSO) unit.

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