Financial Highlights
- Orders of $6.0 billion for the quarter, up 15% sequentially and up 9% year-over-year on a combined business basis
- Revenue of $5.5 billion for the quarter, up 3% sequentially and up 2% year-over-year on a combined business basis
- GAAP operating income of $78 million for the quarter, increased $119 million sequentially and increased $223 million year-over-year on a combined business basis
- Adjusted operating income of $289 million for the quarter, up 27% sequentially
- Cash flows generated from operating activities were $139 million for the quarter
- Free cash flow for the quarter was $(22) million. Included in free cash flow is a cash usage of $110 million relating to restructuring and merger-related payments
Oilfield Services
BHGE secured an integrated well services contract to support a large proportion of Equinor’s drilling and well construction activities in Troll, Oseberg and Grane, which is part of the Norwegian Continental Shelf BHGE will be the main drilling and well services provider for the eight rigs in this region.
“We feel good about the momentum there and the short-cycle activity in North America continuing, so pick-up there”, said Baker chairman, president, and CEO Lorenzo Simonelli during the conference call.
Oilfield Equipment
BHGE was awarded subsea production and completions contracts by Chevron Australia for phase two of the Gorgon project in Western Australia. 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.
Speaking about the 2Q OFE Simonelli said, “that’s the strongest quarter we’ve had since 2015 with the announcement of Gorgon and Shwe wins, and we feel very good about the improving visibility to projects in the future with the commodity pricing being range-bound which is helping our customers decide on the larger FIDs.”
The company also secured an award for phase two of POSCO DAEWOO Corporation’s Shwe gas field development, a continuation of its technical partnership with McDermott. BHGE will supply eight Medium-water Horizontal Christmas Trees (MHXT), eight subsea production control systems and distribution equipment, and topside controls.
Turbomachinery & Process Solutions
BHGE will provide turbomachinery equipment for a third train at Cheniere’s LNG facility in Corpus Christi consisting of six gas turbines and various compressors.
The company was also selected by Global LNG Services (GLS) to provide technology and services, including its LM9000 gas turbine for the Main Pass Energy Hub, currently in development offshore Louisiana.
Additionally, BHGE was selected to provide gas turbines for the Mero 1 FPSO, the first FPSO in the Libra field, which is located just off of the coast of Brazil. This will be the largest FPSO in the country at a capacity of up to 180,000 barrels per day.
Source: BBC
Simonelli also noted that BHGE expects LNG demand to double to about 500mm tons per annum by 2030.
