BHGE NET INCOME $13 MLN

BHGE - Baker Hughes, a GE company Announces Third Quarter 2018 Results

• Orders of $5.7 billion for the quarter, down 5% sequentially and flat year-over-year

• Revenue of $5.7 billion for the quarter, up 2% sequentially and up 7% year-over-year

• GAAP operating income of $282 million for the quarter, increased $204 million sequentially and increased $475 million year-over-year

• Adjusted operating income (a non-GAAP measure) of $377 million for the quarter, up 30% sequentially and up $207 million year-over-year*

• GAAP diluted earnings per share of $0.03 for the quarter which included $0.16 per share of adjusting items. Adjusted diluted earnings per share (a non-GAAP measure) were $0.19*

• Cash flows generated from operating activities were $239 million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $146 million. Included in free cash flow is a cash usage of $151 million relating to restructuring, legal settlements and merger-related payments*

*The Company presents its financial results in accordance with GAAP which includes the results of Baker Hughes and GE Oil & Gas from the transaction closing date of July 3, 2017. However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see Tables 1a, 1b and 1c for a reconciliation of GAAP to non-GAAP financial measures.

"We are now in the second year of our journey as BHGE. The Company's operations are improving, and we are driving change in the industry with our differentiated portfolio. We are focused on commercial innovation, outcome-based models and leveraging our leading technology offerings to drive significant efficiency and productivity enhancements for BHGE and our customers. We remain focused on our priorities of gaining market share, increasing margin rates and delivering strong free cash flow," said Lorenzo Simonelli, BHGE Chairman, President and Chief Executive Officer.

"In the third quarter, we delivered $5.7 billion in orders and $5.7 billion in revenues. Adjusted operating income in the quarter was $377 million. Year-to-date we have generated $350 million of free cash flow. We delivered $224 million of synergies in the quarter and are on track to achieve the $700 million target for the year.

"In Oilfield Services (OFS), the market environment continues to improve, and our well construction product lines are seeing robust activity increases. We remain focused on gaining share in critical markets, and increasing the margin rate, which was up more than 400 basis points year-over-year. This quarter, we secured some critical wins in the Middle East and achieved a number of significant execution milestones with our customers across the Marcellus and Permian basins in North America. We saw strong growth in our Drilling Services and international Pressure Pumping product lines and we outperformed the market in the Middle East and Asia Pacific.

"In our Oilfield Equipment (OFE) segment, the outlook is steadily improving. This quarter we secured several wins across our portfolio, including our first new-build blowout preventer (BOP) order since 2014. We are leveraging our flexible partnership models and enhancing our technology offering to drive better, more sustainable subsea economics for customers, and we are well positioned as the market continues to improve.

"In our Turbomachinery & Process Solutions (TPS) segment, we continue to see strength in the LNG market and BHGE is well positioned to benefit as customers move forward with new projects. In the quarter, we secured important awards in the upstream production and pipeline segments and are seeing improvements in our transactional services business. We remain focused on maintaining our LNG leadership and delivering on our cost-out initiatives.

"In our Digital Solutions (DS) segment, another quarter of strong execution led to solid revenue growth and over 350 basis points of margin expansion year-over-year. The oil and gas end markets continue to gain momentum, specifically in pipeline inspection. We are also gaining further traction with customers in our digital offerings and driving growth in our core hardware business across multiple industries, including aviation, automotive and consumer electronics.

"We are encouraged by the improved outlook for the macro environment. We expect both the North American and International markets to grow in 2019 as customers increase spending and overall rig and well counts grow. The offshore market is the strongest it has been in many years and the improving tender and order activity is an encouraging sign as we look out to 2019 and beyond. The LNG outlook is also improving, and we conservatively estimate a total of 65 million tons per annum of new capacity to be sanctioned by 2020. We remain well-positioned for the next build-cycle.

"We continue to leverage our differentiated technology, unique portfolio and our focus on customers to build market-leading product companies and deliver productivity solutions to the oil and gas industry. As we enter the second year of our journey as BHGE, we remain focused on what matters most - delivering for our customers and for our shareholders," concluded Simonelli.

More information is here.

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Earlier:

2018, October, 8, 10:10:00 U.S. RIGS DOWN 2 TO 1,052 BAKER HUGHES A GE - U.S. Rig Count is down 2 rigs from last week to 1,052, with oil rigs down 2 to 861, gas rigs unchanged at 189, and miscellaneous rigs unchanged at 2. Canada Rig Count is up 4 rigs from last week to 182, with oil rigs down 3 to 119 and gas rigs up 7 to 63.

2018, October, 8, 10:00:00 WORLDWIDE RIG COUNT DOWN 20 TO 2,258 BAKER HUGHES A GE - The worldwide rig count for September 2018 was 2,258, down 20 from the 2,278 counted in August 2018, and up 177 from the 2,081 counted in September 2017.

2018, October, 5, 12:05:00 ONGC CONTRACT: $1.7 BLN OGJ - State-owned Oil & Natural Gas Corp. has let a contract for combined subsea work on its KG-DWN-98/2 (“Cluster-2”) deepwater development off eastern India to a consortium of Baker Hughes, a GE company, McDermott International Inc., and L&T Hydrocarbon Engineering, a subsidiary of Larsen & Toubro.

2018, September, 5, 10:30:00 BAKER HUGHES & SAUDI ARAMCO CONTRACT PLATTS - Saudi Aramco has awarded Baker Hughes a major services contract to boost crude oil production from Saudi Arabia's offshore Marjan oil field.

2018, July, 23, 13:05:00 BAKER HUGHES NET LOSS $19 MLN BAKER HUGHES A GE - 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.

2018, April, 23, 14:05:00 BAKER HUGHES GE NET INCOME $70 MLN BHGE - Baker Hughes, a GE company Announces First Quarter 2018 Results Revenue of $5.4 billion for the quarter, down 7% sequentially and up 1% year-over-year on a combined business basis GAAP operating loss of $41 million for the quarter, decreased 63% sequentially and increased unfavorably year-over-year on a combined business basis Adjusted operating income (a non-GAAP measure) of $228 million for the quarter, down 20% sequentially and down 19% year-over-year on a combined business basis

2017, October, 23, 11:05:00 BAKER HUGHES NET LOSS $104 BLN “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.