BAKER HUGHES NET LOSS $19 MLN

BAKER HUGHES A GE - Baker Hughes, a GE company Announces Second Quarter 2018 Results

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 (a non-GAAP measure) of $289 million for the quarter, up 27% sequentially and up favorably year-over-year on a combined business basis

GAAP diluted loss per share of $(0.05) for the quarter which included $0.15 per share of adjusting items. Adjusted diluted earnings per share (a non-GAAP measure) were $0.10. Adjusted diluted earnings per share includes a loss of $(0.03) related to BJ Services.

Cash flows generated from operating activities were $139 million for the quarter. Free cash flow (a non-GAAP measure) 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.

"Twelve months ago, we created BHGE to deliver differentiated solutions for our customers and provide a unique investment opportunity for our shareholders. Since closing, we have executed on the integration, secured important commercial wins and delivered superior performance for our customers. We also made progress on our priorities of gaining market share, increasing margin rates and delivering strong free cash flow," said Lorenzo Simonelli, BHGE Chairman and Chief Executive Officer.

"In the second quarter, we delivered $6.0 billion in orders and $5.5 billion in revenues. Adjusted operating income in the quarter was $289 million. In the first half of the year we delivered $204 million of free cash flow. We delivered $189 million of synergies in the quarter and are on track to achieve the $700 million target for the year.

"In Oilfield Services (OFS), margins were up more than 550 basis points year-over-year. We remain committed to gaining share in key markets and product lines, and delivering high quality service to our customers. In the second quarter, we outperformed the market in the North Sea, Sub Saharan Africa and Asia Pacific. Completions and Artificial Lift product lines both showed strong growth, and in North America we grew Drilling Services well in excess of the rig count.

"In our Oilfield Equipment (OFE) segment, we had our largest orders quarter since 2015, winning significant subsea production awards across six different projects. Our book-to-bill ratio in the quarter was 1.7, a clear sign of our ability to win big projects with a collaborative partnership approach and our leading gas technology.

"In our Turbomachinery & Process Solutions (TPS) segment, our priorities are centered on LNG leadership, services capability, growth in the industrial space and cost-out. In the quarter, we secured important commercial wins in LNG and on-and-offshore production, two of the largest drivers of our TPS segment. We also advanced our cost-out initiatives and expect these to materialize into improved margins in 2019.

"In our Digital Solutions (DS) segment, strong execution led to solid revenue growth and over 450 basis points of margin expansion year-over-year. We are seeing increased interest from customers in our sensor, inspection and software offerings, and we are gaining traction with our Predictive Corrosion Management software to support the growing corrosion market.

"The macro outlook continues to be favorable. North American production is increasing as operators grow rig and well counts, and we are seeing signs of increasing international activity in some geomarkets. Our portfolio mix positions us well for short and long-term growth as the market improves and the next wave of customer projects come into view.

"We made a tremendous amount of progress in our first year as BHGE and our team has delivered some great wins, but we know there is more work to do. I would like to thank the employees of BHGE for their hard work and dedication over the past year. Going forward, we remain focused on what matters most - delivering for our customers and for our shareholders," concluded Simonelli.

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Earlier:

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.

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