Reuters is reporting that Baker Hughes Co. has announced that its latest earnings fell short of expectations.
A contributing factor to this shortfall has been identified as lower sales and orders for the company’s business unit that supplies LNG producers with turbines and compressors.
The business unit in question, Turbomachinery & Process Solutions (TPS), had been one of Baker Hughes’ strongest performers in the early quarters of 2019. During this time the unit benefitted from a number of US LNG developers adding new capacity to their projects during a period of strong demand.
Since then, the unit’s revenue has dipped by 8% and orders have fallen by 10% year-over-year. However, profit for the unit has risen by 19% in terms of productivity and cost gains. Overall, the company’s outlook for TPS is positive, as it forecasts revenue growth of 20% for this year, in addition to expanded margins.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/23012020/baker-hughes-profits-fall-short-of-expectations/