Baker Hughes remains positive on its outlook for 2023 despite a decline in its net profit in the second quarter.
The company reported a net profit of $410 million for the second quarter, down 29 percent from the $576 million reported in the first quarter of the year.
However, compared to the second quarter of 2022, when the company posted a loss of $839 million, it’s a turnaround.
“We are pleased with our second quarter results and remain optimistic about the outlook for 2023. We have maintained our strong order momentum in Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE), specifically in Subsea & Surface Pressure Systems (SSPS),” said Lorenzo Simonelli, Baker Hughes President and CEO.
“Rising economic uncertainty continues to drive commodity price volatility globally. However, despite lower oil prices in the first half of the year, we maintain a constructive outlook for global spending on the upside in 2023. Market softness in North America is expected to be more than offset by strength in international and offshore markets,” Simonelli said.
Revenue for the quarter was $6.3 billion, up 10 percent sequentially. The increase in revenue was driven by higher volume in IET and OFSE. Compared with the same quarter last year, revenue rose 25 percent, driven by higher volume in both segments, Baker Hughes said.
The OFSE business segment strengthened Baker Hughes’ presence in West Africa. Last month, Baker Hughes secured a contract from Eni and its partner Petroci for the Baleine Phase 2 project in Ivory Coast, Africa’s first scope 1 and 2 net zero emissions development.
The IET business segment had a strong quarter in gas technology as LNG and new energy momentum continues to grow. IET received an LNG order from Bechtel to supply three main refrigeration compressors for NextDecade’s Rio Grande LNG project at the Port of Brownsville, Texas. In total, Baker Hughes will supply six Frame 7 gas turbines combined with 18 centrifugal compressors to Rio Grande’s first three LNG trains in a parallel configuration, providing more operational flexibility for a nominal capacity of 17.6 million tonnes per year.
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