Baker Hughes has reported a net income of $1.943 billion, up $2.544 billion year-over-year, according to its press release about its Q4 2023 results.
The company’s Adjusted EBITDA for the full year stood at $3.76 billion, reflecting a 26% increase compared to the previous year.
“As we continue our journey, 2023 proved to be a pivotal year for Baker Hughes. We successfully removed $150 million in costs, realigned our Industrial & Energy Technology (IET) segment, and recently launched actions to further streamline our Oilfield Services & Equipment segment (OFSE). Our strategy to transform the way we operate is working,” said Lorenzo Simonelli, Baker Hughes Chairman and CEO.
The company generated cash flows from operating activities at $932 million, with free cash flow at $633 million.
The company also reported strong operational performance, securing significant contracts and orders across its business segments, including multi-year integrated solutions contracts in Latin America and important contracts in the Gas Technology Equipment and Services sectors in the Middle East.
During the fourth quarter, Baker Hughes confirmed the previously announced award to supply two electric liquefaction systems for the 9.6 MTPA Ruwais LNG project in the United Arab Emirates, one of the first all-electric LNG projects in the Middle East.
Gas Technology Equipment also secured an important contract from a consortium for one electric motor driven sour gas booster compression package, to support the development of offshore natural gas fields in the Middle East.
Also in the fourth quarter, Gas Technology Services secured several important upgrade orders, particularly in Europe for both refinery and gas network applications to provide operators with solutions that can enable efficiency gains and emissions reduction.
“As you can see from our strong 2023 results, Baker Hughes is on its way to becoming a leaner and more efficient energy technology company. We continue to carefully execute our plan to drive margins meaningfully higher,” Simonelli concluded.
Baker Hughes has made significant strides in the new energy sector. In the fourth quarter of 2023, the Industrial & Energy Technology (IET) segment secured a Climate Technology Solutions order for two Brush synchronous condenser systems to be installed in the UK.
The company continued to make progress in the new energy front by supporting a Middle Eastern customer’s energy transition goals and deploying the PYRO-DRILL high-temperature drilling fluid for its first geothermal application.
This followed a strong year of geothermal awards, the launch of the complete portfolio of Vulcanix geothermal drill bits, and the introduction of Baker Hughes’ ThermaStim solution to unlock full well potential and reduce environmental impact.
