Baker Hughes’s revenues reached $5.4 billion during Q1 2020, recording a 3% year-on-year (YoY) decrease from Q1 2019, according to a statement.

The statement showed that orders went down by 3% YoY, estimated at $5.5 billion. As Oilfield Services (OFS) revenue recorded $3,139 million, while Oilfield Equipment (OFE) orders recorded $492 million, driven primarily by lower orders in subsea production systems and services businesses. Additionally, the company showed a $478 million in cash flow from operating activities during Q1 2020 and $152 million of free cash flow. 

Lorenzo Simonelli, Baker Hughes’ CEO and Chairman, clarified that as a result of the coronavirus (COVID-19) pandemic which caused an imbalance in the oil supply and demand, prices have declined by 67% during Q1 2020.

Due to the current economic climate, Baker Hughes will reduce its capital expenditures by more than 20%, which aligns with the company’s plans to improve margins and operating efficiency

“Looking forward, the outlook for oil and gas demand and supply appears equally uncertain, and it will largely be driven by the pace of economic recovery from the COVID-19 pandemic and the supply response that ultimately materializes,” added Simonelli.