With earnings before tax up 21% year-on-year chairman and chief executive of Baker Hughes, Lorenzo Simonelli, said “2024 has gotten off to a good start”.
The firm has reported an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $943 million and $6.4 billion in revenues.
This shows that revenues have climbed 12%, compared to this time last year.
Lorenzo Simonelli commented: “Our solid first-quarter results put us on a path toward achieving our full-year guidance and continue to build on the momentum from last year as we execute our strategy.”
The US-based oilfield services giant can boat an order book with a value of $6.5 billion, including $2.9 billion of Industrial & Energy Technology (IET) orders.
Mr Simonelli continued: “We have started the year positively on the orders front.
“This is particularly evident in the IET segment, where we booked $2.9 billion of orders during the quarter, including large awards from Aramco for the Master Gas System 3 and Black & Veatch for Cedar LNG.”
“We delivered strong first quarter operating results, highlighted by 50% year-over-year Adjusted EPS growth. Importantly, we exceeded the midpoint of our EBITDA margin guidance, driven by outstanding operational performance in the IET segment. We also booked $239 million of new energy orders and generated more than $500 million of free cash flow.”
Baker Hughes’ Investor Overview for the first quarter of 2024 tells share holder to “continue to expect high single-digit growth in ’24.”
Europe, Sub-Saharan Africa (SSA) and Asia and Eastern Europe (CIS) accounted for just 17% of the firm’s revenues combined.
The Middle East held the highest percentage of revenues per region for the firm, claiming 38%. North America accounted for 27% and the remaining 18% was made in Latin America.
The Baker Hughes boss added: “We also continue to enhance returns to our shareholders.
“During the quarter, we increased our quarterly dividend by one penny to 21 cents, which represents an 11% increase year-over-year, repurchased $158 million of shares and remain firmly on-track to deliver 60% – 80% of free cash flow to shareholders.”