Baker Hughes has announced that it has achieved revenues of $6.6 billion in Q3 2023, up 24% year-over-year (YoY).
Baker Hughes reported net income of $518 million for the quarter, up $534 million YoY, in addition to adjusted net income (a non-GAAP measure) of $427 million for the quarter, up $163 million YoY.
Additionally, the Houston-based company reported adjusted EBITDA (a non-GAAP measure) of $983 million for the quarter, up 30% YoY.
“We were pleased with our third quarter results and remain optimistic about the outlook. We maintained strong order performance in both Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE), with large awards coming from Venture Global in liquefied natural gas (LNG) and Vår Energi in subsea,” said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.
We also delivered strong operating results at the upper end of our EBITDA* guidance range, booked almost $100 million of new energy orders, and generated $592 million of free cash flow. We continue to see positive momentum across our portfolio despite persisting global economic uncertainty,” Simonelli added.
Simonelli emphasized the importance of monitoring the discipline of major oil producers, the pace of oil demand growth in the face of economic uncertainty, and geopolitical risks as key factors for the future.
“Oil prices have rebounded as the combination of resilient oil demand and production cuts has tightened the market. As a result, the oil market is likely to see inventory draws through the rest of 2023,” he noted.
Globally, the company expects 2023 LNG demand to approach 410 million tons per annum (mtpa), or up about 2% compared to last year. With an estimated global nameplate capacity of 490 MTPA this year, effective utilization is expected to be over 90%, which has historically represented a tight market. As a result, the LNG project pipeline remains strong, both in the U.S. and internationally.
“Outside of the upstream markets, the global LNG market remains fundamentally tight despite recent economic softness. This tightness is evidenced by the recent LNG price spikes that resulted from the current Middle East conflict and strikes by LNG workers in Australia, which temporarily interrupted operations at several LNG facilities,” Simonelli explained.
Baker Hughes is focused on enhancing its position as a leading energy technology company. The company anticipates continued growth in both its IET and OFSE segments.
“While there is a growing consensus the energy transition will likely take longer and be more complex than many expected, our unique portfolio is set to benefit irrespective of the pace of development. Importantly, we are laying the foundation today for a more durable earnings and free cash flow growth profile, enabling best-in-class returns and structurally increasing shareholder returns. I want to thank our shareholders, our customers, and our employees for their continued support as we continue to take energy forward,” Simonelli concluded.