The expansion worldwide in global liquefied natural gas (LNG) demand and growing international oil and gas services helped lift the second quarter performance of Baker Hughes, a GE company (BHGE).
During the second quarter, the Houston-based oilfield services (OFS) operator booked $6.6 billion in orders, 15% higher sequentially and 9% year/year, primarily from an increase in orders in the Turbomachinery and Process Solutions (TPS) segment, which provides LNG services, and from gains in the OFS segment.
Equipment orders overall were up 10% year/year, while service orders climbed 7%. The total book-to-bill ratio in the quarter was 1.1; the equipment book-to-bill ratio was 1.2.
BHGE CEO Lorenzo Simonelli said there’s more visibility for LNG growth ahead, along with stronger overseas activity.
“The LNG newbuild cycle is a strong positive for our company,” Simonelli said. “We have seen approximately 60 million metric tons/year (mmty) of new capacity reach final Investment decision since the fourth quarter of 2018, and the industry is on track to reach the 100 mmty we outlined by the end of 2019.”
Revenue totaled almost $6 billion, up 7% sequentially and 8% year/year. OFS volumes were 9% higher sequentially and up 13% from 2Q2018. TPS rose 8% from the first quarter and was 1% higher year/year, while Digital Solutions gained 7% sequentially but fell 5% from 2Q2018. Oilfield Equipment was off 6% from 1Q2019, but it was 12% higher year/year.
North America revenue was $1.22 billion, up 5% sequentially, while international revenue increased 12% from the first quarter to $2.05 billion.
TPS orders overall were up 32% year/year. Equipment orders were up 117% driven by higher LNG and on- and offshore-production orders. Service orders were down 5%.
Net quarterly losses fell year/year to $11 million (minus 2 cents/share) from $38 million (minus 5 cents). Operating income increased to $271 million from $78 million.