The following is a summary of the Baker Hughes Company (BKR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Baker Hughes reported strengthened Q1 results with EBITDA margins seeing an increase of 100 basis points year-on-year.
The company registered a 50% growth in EPS year-on-year.
It booked $239 million of new energy orders and produced over $500 million of free cash flow.
The IET segment witnessed a 30% increase in EBITDA compared to Q1 2023, marking the highest quarterly year-on-year growth rate in three years.
Improved EBITDA margins in the OFSE segment by 80 basis points compared to last year.
The company increased its quarterly dividend by $0.01 to $0.21, marking an 11% increase year-on-year.
Baker Hughes reported Q1 adjusted EBITDA of $943 million, a 21% increase year-on-year.
The company returned $368 million to shareholders in Q1 through dividends and share repurchases.
The net debt to trailing 12-month adjusted EBITDA ratio stood at 0.8x.
Business Progress:
Baker Hughes is progressing in its transition towards an energy technology company.
The company launched mature asset solutions, a business that optimizes production from existing assets.
The company booked over $2.9 billion of orders in Q1 in IET, including large contracts from Aramco and Black & Veatch for Cedar LNG.
Long term, Baker Hughes expects continuous growth in upstream spending, led by offshore markets in Latin America and West Africa as well as the Middle East.
The company has future confidence in achieving new energy orders worth between $800 million and $1 billion for the year.
Baker Hughes is on track to reach its 20% margin targets for both OFSE and IET segments.
The company sees potential in increasing margins, EBITDA, and returns in the coming years, leading to stronger free cash flow conversion of at least 50%.
Baker Hughes remains committed to returning 60% to 80% of free cash flow to shareholders.
More details: Baker Hughes IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.