Baker Hughes reported a $452 million loss for the first quarter of 2021, according to a company press release. During the same quarter last year, the Houston-based company reported a $10.2 billion loss.
In releasing its earnings report, the energy services company reported orders of $4.5 billion were down 12% sequentially and down 18% year-over-year. The sequential decrease was a result of lower order intake in Oilfield Equipment and Turbomachinery & Process Solutions, partially offset by growth in Digital Solutions. Equipment orders were down 23% sequentially and service orders were down 4%. Year-over-year, the decline in orders was a result of lower order intake in Oilfield Services and Oilfield Equipment, partially offset by growth in Digital Solutions and Turbomachinery & Process Solutions. Year-over-year equipment orders were down 18% and service orders were down 18%.
The company’s revenue for the quarter was nearly $4.8 billion which was down 13% sequentially and down 12% year-over-year. The decrease in revenue was driven by lower volume across all segments. The year-over-year decrease in revenue was driven by lower volume across the Oilfield Services, Oilfield Equipment and Digital Solutions segments, partially offset by Turbomachinery & Process Solutions.
On a GAAP basis, operating income for the first quarter of 2021 was $164 million. Operating income decreased $18 million sequentially and increased $16,223 million year-over-year. Total segment operating income was $379 million for the first quarter of 2021, down 34% sequentially and up 5% year-over-year.
Adjusted operating income (a non-GAAP measure) for the first quarter of 2021 was $270 million, up 13% year-over-year driven by volume in the Turbomachinery & Process Solutions segment and margin expansion in the Oilfield Equipment segment, partially offset by lower volume in the Oilfield Services and Digital Solutions segments. It excludes adjustments totaling $106 million before tax, mainly related to restructuring and separation related charges.
North America revenue was $625 million, up 1% sequentially. International revenue was $1,575 million, a decrease of 5% sequentially, driven by lower revenues in Russia CIS, the Middle East, and Europe, partially offset by Latin America.
Segment operating income before tax for the quarter was $143 million. Operating income for the first quarter was up $2 million, or 1% sequentially, primarily driven by productivity as a result of cost efficiencies and restructuring, partially offset by lower volume.
Oilfield Equipment (OFE) orders were down $147 million, or 30%, year-over-year, driven by lower order intake across most of the segment. Equipment orders were down 25% and services orders were down 35% year-over-year.
“We are pleased with our first quarter results as we generated strong free cash flow, continued to drive forward our cost-out efforts, and took further meaningful steps in the execution of our strategy,” stated Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer. “As we look ahead to the rest of 2021, we remain cautiously optimistic that the global economy and oil demand will recover from the impact of the global pandemic. We expect spending and activity levels to gain momentum through the year as the macro environment improves, likely setting up the industry for stronger growth in 2022.”