BAKER HUGHES NET LOSS $104 BLN

BHGE - Baker Hughes, a GE company Announces Third Quarter Results

• Orders of $5.7 billion for the quarter, up 2% sequentially and 18% year-over-year on a combined business basis
• Revenue of $5.4 billion for the quarter, down 1% sequentially and flat year-over-year on a combined business basis
• GAAP operating loss was $122 million for the quarter decreased 17% sequentially and decreased 22% year-over-year on a combined business basis
• Adjusted operating income (a non-GAAP measure) was $240 million for the quarter, up 105% sequentially and down 13% year-over-year on a combined business basis
• GAAP net loss per share of $(0.24) for the quarter which included $0.29 per share of adjusting items
• Basic loss per share were $(0.24) for the quarter, adjusted basic earnings per share (a non-GAAP measure) were $0.05
• Cash flows used in operating activities were $(195) million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $(405) million 

"The combination of GE Oil & Gas and Baker Hughes closed on July 3, and we are pleased with our progress during our first operating quarter. Despite the continuing challenging environment, we delivered solid orders growth and secured important wins from customers, advanced existing projects and enhanced our technology offerings in the quarter. We also achieved key integration milestones and made significant progress working as a combined company. I am now more convinced than ever that we combined the right companies at the right time," said Lorenzo Simonelli, BHGE chairman and chief executive officer.

"In our Oilfield Services segment, we continue to see growth driven by our well construction business in North America. While the North America rig count is up more than 40% year-to-date, we saw a deceleration in the quarter with the US Land rig count up 6% versus the end of the second quarter. International activity remains muted with rig count flat year-to-date.

"In our Oilfield Equipment segment, the subsea market continues to be challenging. Activity remains low and price continues to be pressured. We expect tree awards in 2017 to be up versus 2016, but still significantly below peak levels seen in 2013. We continue to expect the subsea market to be very challenged in the short term with little sign of any significant recovery in 2018.

"In our Turbomachinery & Process Solutions segment, the LNG market continues to be over-supplied in the near term with gas prices pressured in most markets. The long-term value proposition for LNG remains positive and we have an industry-leading portfolio in the segment with strong manufacturing and service capabilities. Downstream markets continue to evolve. In refining, large, complex refineries should gain an advantage in a more competitive, oversupplied landscape. However, costs and refining margins continue to delay some projects. In petrochemicals, we see healthy end-market demand. Cost advantaged supply bases continue to drive projects forward, particularly in North America and the Middle East.

"In our Digital Solutions segment, we see end markets for our measurement and controls-based portfolio slowly returning to growth. Aviation and industrial markets continue to be robust but are partially offset by declines in the power market. Oil and gas end markets are beginning to stabilize, and we expect them to return to growth over the medium term. Our Digital offerings in software and digital services continue to gain traction in the marketplace.

"We expect the overall oil and gas environment to remain challenging for the rest of the year. We have seen some improvement in activity but we have not seen meaningful increases in customer capital commitments. Oil prices remain volatile and, as a result, our customers remain cautious. We continue to support our customers through innovative solutions and solid execution and are focused on integrating and driving the best of both legacy businesses," Simonelli said.

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Earlier:

2017, July, 5, 12:10:00 GE & BAKER HUGHES DEAL General Electric Co. closed its deal to combine its long-suffering energy business with Baker Hughes Inc. on Monday, creating one of the largest companies in the oil-field services industry.

2017, April, 27, 18:35:00 BAKER HUGHES NET LOSS $129 MLN Revenue for the quarter was $2.3 billion, a decrease of $148 million, or 6%, sequentially. Compared to the same quarter last year, revenue declined $408 million, or 15%. The sequential decrease in revenue was driven primarily by the deconsolidation of the North America onshore pressure pumping business, lower revenue internationally, mainly related to non-recurring year-end product sales, seasonality and price deterioration, and reduced activity in the Gulf of Mexico. This decline was partially offset by activity growth in our North America onshore business, primarily in our well construction product lines.

2017, January, 26, 18:35:00 BAKER HUGHES NET LOSS $2.7 BLN In the second half of 2016, we reduced annualized costs by nearly $700 million, exceeding our initial goal by almost 40%, paid down $1 billion in debt, repurchased more than $750 million in shares, accelerated innovation with nearly 70 new product introductions, and built new sales channels for our products and technology.

2016, October, 31, 18:40:00 GE & BAKER HUGHES: $32 BLN - Combination creates an unparalleled company positioned to deliver value for customers and investors - GE to own 62.5% and Baker Hughes shareholders to own 37.5% of the “New” Baker Hughes - GE to contribute $7.4 billion to fund the $17.50 per share special dividend to existing Baker Hughes shareholders

2016, October, 25, 18:30:00 BAKER HUGHES NET LOSS $2.3 BLN Baker Hughes Announces Third Quarter Results: - Revenue of $2.4 billion for the quarter, down 2% sequentially and 38% year-over-year - Operating losses were $321 million for the quarter, a sequential improvement of $249 million, or 44% - GAAP net loss per share of $1.00 for the quarter includes $0.85 per share of adjusting items - Cash flows from operating activities were $119 million for the quarter

2016, July, 28, 18:45:00 BAKER HUGHES NET LOSS $911 MLN On a GAAP basis, net loss attributable to Baker Hughes for the second quarter was $911 million, or $2.08 per diluted share, compared to $981 million, or $2.22 per diluted share, in the first quarter of 2016. The second quarter includes charges related to goodwill impairment, asset impairments, restructuring, and inventory, almost entirely offset by the merger termination fee paid to the Company by Halliburton as a result of the termination of the Merger Agreement on April 30, 2016.

2016, May, 3, 15:10:00 HALLIBURTON & BAKER HUGHES TERMINATION “While both companies expected the proposed merger to result in compelling benefits to shareholders, customers and other stakeholders, challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics led to the conclusion that termination is the best course of action,”