Baker Hughes, a GE company has announced results for Q2 2018.
“Twelve months ago, we created BHGE to deliver differentiated solutions for our customers and provide a unique investment opportunity for our shareholders. Since closing, we have executed on the integration, secured important commercial wins and delivered superior performance for our customers. We also made progress on our priorities of gaining market share, increasing margin rates and delivering strong free cash flow," said Lorenzo Simonelli, BHGE Chairman and Chief Executive Officer.
“In the second quarter, we delivered US$6.0 billion in orders and US$5.5 billion in revenues. Adjusted operating income in the quarter was US$289 million. In the first half of the year we delivered US$204 million of free cash flow. We delivered US$189 million of synergies in the quarter and are on track to achieve the US$700 million target for the year.”
“In our Turbomachinery & Process Solutions (TPS) segment, our priorities are centered on LNG leadership, services capability, growth in the industrial space and cost-out. In the quarter, we secured important commercial wins in LNG and on-and-offshore production, two of the largest drivers of our TPS segment. We also advanced our cost-out initiatives and expect these to materialise into improved margins in 2019.”
“We made a tremendous amount of progress in our first year as BHGE and our team has delivered some great wins, but we know there is more work to do. I would like to thank the employees of BHGE for their hard work and dedication over the past year. Going forward, we remain focused on what matters most – delivering for our customers and for our shareholders,” concluded Simonelli.
Quarter highlights:
- BHGE was awarded substantial subsea production and completions contracts by Chevron Australia for phase two of the Gorgon project in Western Australia, one of the largest gas projects in the world. BHGE will supply 13 subsea trees and other subsea equipment, including manifolds, wellheads, and production control systems, helping to maintain gas supply to the downstream LNG plant. BHGE will also provide completion equipment and services from its OFS segment.
- BHGE’s Turbomachinery & Process Solutions segment will provide turbomachinery equipment for a third train at Cheniere’s LNG facility in Corpus Christi consisting of six gas turbines and various compressors. This project represents the first FID on new liquefaction capacity in the United States since 2015 and the fifth order for BHGE equipment for Cheniere through Bechtel.
- BHGE was also selected by Global LNG Services (GLS) to provide technology and services, including its high-efficiency LM9000 gas turbine for the Main Pass Energy Hub, currently in development offshore Louisiana. BHGE will work collaboratively with GLS as they move toward final investment decision. This award is further proof that the LM9000 gas turbine is a key technology component to increase power output with a smaller footprint.