Baker Hughes announced its first quarter 2023 results Wednesday, surpassing analyst estimates with its significant increase on orders and revenue from the same time last year.
The oilfield services giant posted orders of $7.6 billion for the quarter, up 12% on the year, and revenue of $5.7 billion for the quarter, up 18% on the year.
Despite the growth from early 2022, Baker Hughes saw slight falls from the fourth quarter of 2022.
The company’s adjusted net income attributable to Baker Hughes (non-GAAP) was $289 billion, down from $381 million the quarter before. Orders and revenue numbers saw similar decreases from the fourth quarter.
“While 2023 has already started off with some macro volatility, we remain optimistic on the outlook for energy services and Baker Hughes,” said chief executive Lorenzo Simonelli.
“Our diverse portfolio features long cycle and short cycle businesses that position us well to navigate any periods of variability that may occur across the energy sector,” he added.
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The company’s income surpassed estimates from investment banking company TD Cowen, which anticipated an adjusted EBITDA of around $730 million, compared to Baker Hughes’ delivered $782 million. The bank said this was aided by revenues being about $200 million higher than expected.
Baker Hughes showed significant growth in its liquefied natural gas work as well, securing awards for Qatargas’ North Field South project expansion for 16 million tonnes per annum of additional capacity and Sempra Infrastructure’s Port Arthur LNG project for 13 million tpa of nameplate capacity.
The company also won awards for smaller LNG projects with Wison and Black & Veatch.
“Another notable characteristic of this cycle is the continued shift towards the development of natural gas and LNG,” said Simonelli.
“As the world increasingly recognizes the crucial role natural gas will play in the energy transition, serving as both a transition and destination fuel, the case for a multi-decade growth opportunity in gas is steadily improving as both a transition and destination fuel.”