Core Insights - Baker Hughes has secured a significant multi-year contract from ExxonMobil Guyana to supply specialty chemicals and related services for the Uaru and Whiptail offshore developments in Guyana's Stabroek Block [1][2] - The contract encompasses all necessary chemicals for the Errea Wittu and Jaguar FPSO vessels, which are expected to commence production in 2026 and 2027, respectively [2][3] - Each FPSO will have a production capacity of 250,000 barrels per day, contributing to a total production capacity of approximately 1.3 million barrels per day for Guyana [3] Company Background - Baker Hughes is an energy technology company with a century of experience, operating in over 120 countries, and focuses on providing innovative solutions to energy and industrial customers [5] - The company has established a strong local presence in Guyana, including the opening of a multimodal supercenter in Georgetown in 2022 [4] Industry Context - The Uaru and Whiptail projects represent ExxonMobil Guyana's fifth and sixth developments in the country, which will include up to 20 drill centers and 92 production and injection wells [3] - Baker Hughes' expertise in oilfield and industrial chemicals positions it well to support complex FPSO operations in the region [3]

Core Viewpoint - Baker Hughes Company is conducting its Q4 2024 earnings conference call, highlighting its financial performance and future outlook [1][3]. Group 1: Company Overview - The conference call is hosted by Chase Mulvehill, Vice President of Investor Relations, with participation from Lorenzo Simonelli, Chairman & CEO, and Nancy Buese, CFO [2][3]. - The earnings release for Q4 2024 is available on the company's website, along with a presentation for the conference call [3]. Group 2: Financial Performance - The call will include forward-looking statements regarding the company's performance, which are subject to various risks and assumptions [4].

Core Insights - Baker Hughes Company (BKR) reported fourth-quarter 2024 adjusted earnings of 70 cents per share, exceeding the Zacks Consensus Estimate of 63 cents and improving from 51 cents a year ago [1][2] - Total quarterly revenues reached $7,364 million, surpassing the Zacks Consensus Estimate of $7,094 million and increasing from $6,835 million in the previous year [2] Dividend Announcement - As of January 31, 2025, Baker Hughes declared a quarterly cash dividend of 23 cents per share, a 10% increase from the previous dividend of 21 cents per share, payable on February 21, 2025 [3] Segment Performance - The company reorganized into two operating segments: Oilfield Services and Equipment, and Industrial and Energy Technology, effective October 1, 2022 [4] - Revenues from the Oilfield Services and Equipment unit were $3,871 million, down 2% from $3,956 million a year ago, and below the estimate of $3,884 million [4] - Operating income from this segment increased to $526 million, up 7% from $492 million in the fourth quarter of 2023, driven by favorable pricing and efficiency gains [5] - Revenues from the Industrial & Energy Technology unit amounted to $3,492 million, up 21% from $2,879 million a year ago, exceeding the estimate of $3,223 million [5] - Operating income from this segment rose to $584 million, a 42% increase from $412 million in the previous year, attributed to higher volumes and improved productivity [6] Costs and Expenses - Total costs and expenses for the fourth quarter were $6,699 million, up from $6,183 million a year ago, and higher than the projected $6,134.4 million [7] Orders and Free Cash Flow - Total orders from all business segments reached $7,496 million, a 9% increase year over year from $6,904 million, although below the expected $9,753.7 million [8] - Free cash flow generated in the quarter was $894 million, compared to $633 million a year ago [9] Capital Expenditure and Balance Sheet - Net capital expenditure for the fourth quarter was $295 million, with cash and cash equivalents of $3,364 million as of December 31, 2024 [11] - Long-term debt stood at $5,970 million, resulting in a debt-to-capitalization ratio of 26.1% [11]

4Q & FY 2024 Results January 31, 2025 Copyright 2025 Baker Hughes Company. All rights reserved. This presentation (and oral statements made regarding the subjects of this presentation) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a "forward-looking statement"). The words "anticipate," "believe," "ensure," "expect," "if," "intend," "estimate," "project," "foresee," ...

Core Insights - Baker Hughes reported strong fourth-quarter results, highlighting its strategic initiatives in energy transition technologies [2][6] - The company achieved a 37.3% year-over-year increase in adjusted EPS, reaching $0.70, and a 7.7% rise in revenue to $7.364 billion, surpassing analyst expectations [2][3] - The focus on low-carbon solutions and technological innovation positions Baker Hughes favorably within the evolving energy sector [4][5] Financial Performance - Adjusted EPS for Q4 2024 was $0.70, compared to $0.62 consensus and $0.51 in Q4 2023, reflecting a 37.3% increase [3] - Revenue increased to $7.364 billion, exceeding the $7.069 billion estimate and up from $6.835 billion in Q4 2023, marking a 7.7% growth [3] - Adjusted EBITDA rose by 20.1% to $1.310 billion, while free cash flow jumped 41.2% to $894 million, driven by improved operational performance [3][7] Strategic Initiatives - The company is focusing on energy transition, with a 24% year-over-year increase in industrial and energy technology orders [6] - The industrial & energy technology segment saw a revenue increase of 21%, with gas technology solutions demand surging by 44% [6] - Baker Hughes is leading in hydrogen-fueled power systems and carbon capture technology, aiming to capture market share in alternative energy [5] Future Outlook - Management is optimistic about maintaining focus on energy transition technologies, anticipating growth driven by the industrial & energy technology segment [8] - The company aims for a 20% EBITDA margin from its oilfield services & equipment segment by 2025 [8] - Investors should monitor developments in strategic energy transition projects, including partnerships in hydrogen energy and carbon capture initiatives [9]

Core Insights - Baker Hughes (BKR) reported quarterly earnings of $0.70 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and up from $0.51 per share a year ago, representing an earnings surprise of 11.11% [1] - The company achieved revenues of $7.36 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.81%, compared to $6.84 billion in the same quarter last year [2] - Baker Hughes has outperformed the S&P 500, gaining about 5% since the beginning of the year, while the S&P 500 has gained 2.7% [3] Earnings Outlook - The future performance of Baker Hughes' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] - Current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $6.58 billion, and for the current fiscal year, it is $2.55 on revenues of $27.95 billion [7] Industry Context - The Oil and Gas - Field Services industry, to which Baker Hughes belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Baker Hughes' stock may also be influenced by the overall outlook for the industry [8]

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered three new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in Germany to support the growing demand in the region [1]. - Strategic partnerships were formed with local retailers to enhance market penetration [2]. Topic 3: Product Development - Launched two new product lines, which accounted for 25% of total revenue in the last quarter [3]. - R&D investment increased by 10% to accelerate innovation and product differentiation [4]. - Customer feedback on the new products has been overwhelmingly positive, with a 90% satisfaction rate [1]. Topic 4: Operational Efficiency - Implemented a new supply chain management system, reducing delivery times by 15% [2]. - Automation of manufacturing processes led to a 5% reduction in production costs [3]. - Employee training programs were expanded, resulting in a 10% increase in productivity [4]. Topic 5: Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [1]. - Introduced eco-friendly packaging for all product lines, reducing plastic usage by 20% [2]. - The company was recognized with a sustainability award for its efforts in reducing environmental impact [3].

Core Insights - Baker Hughes Company reported exceptional fourth-quarter results for 2024, achieving new records in revenue, free cash flow, and adjusted measures of EPS, EBITDA, and EBITDA margin, indicating successful execution of its profitable growth strategy [4][5][18] - The company anticipates continued strong EBITDA growth in 2025, primarily driven by its Industrial & Energy Technology (IET) segment [4][5] Fourth-Quarter Highlights - Orders for the fourth quarter reached $7.5 billion, with IET orders contributing $3.8 billion, reflecting strong demand in LNG and gas infrastructure [5][7] - Revenue for the quarter was $7.4 billion, representing an 8% year-over-year increase [7][18] - Net income attributable to Baker Hughes was $1.2 billion, a 168% increase year-over-year, with GAAP diluted EPS at $1.18 and adjusted diluted EPS at $0.70 [7][27] - Adjusted EBITDA for the quarter was $1.31 billion, up 20% year-over-year [7][23] Full-Year Highlights - Total orders for 2024 amounted to $28.2 billion, with IET orders at $13 billion, marking the second-highest order year ever for the company [5][40] - Full-year revenue was $27.8 billion, a 9% increase compared to 2023 [7][40] - Attributable net income for the year was $2.98 billion, with adjusted EBITDA reaching $4.59 billion, a 22% increase year-over-year [7][40] Segment Performance - The IET segment saw significant growth, with orders increasing by 24% year-over-year to $3.76 billion and revenue rising by 21% to $3.49 billion [36][37] - The Oilfield Services & Equipment (OFSE) segment experienced a decline in orders and revenue, with fourth-quarter revenue at $3.87 billion, down 2% year-over-year [31][40] Strategic Initiatives - Baker Hughes is focused on achieving a 20% EBITDA margin target for its OFSE segment in 2025 and for IET by 2026, supported by ongoing transformation actions [5][4] - The company announced a 10% increase in its quarterly dividend to $0.23, reflecting confidence in its earnings and free cash flow durability [5][4] Market Position and Awards - Baker Hughes secured multiple project awards in the LNG sector, including a major contract for a modularized LNG system and power island [10][11] - The company continues to strengthen its position in gas infrastructure, evidenced by significant contracts in Saudi Arabia and various service agreements in the LNG sector [9][11][12]

Core Points - Baker Hughes announced an increased quarterly cash dividend of $0.23 per share, reflecting a 10% increase compared to the same quarter last year [1] - The dividend will be payable on February 21, 2025, to shareholders of record on February 11, 2025 [1] - The company expects to fund the dividend from cash generated from operations [1] Company Overview - Baker Hughes is an energy technology company providing solutions to energy and industrial customers globally [2] - The company has over a century of experience and operates in more than 120 countries [2] - Baker Hughes focuses on innovative technologies and services aimed at making energy safer, cleaner, and more efficient [2]

Core Insights - Baker Hughes has been awarded an order for six gas compression trains and six propane compressors for the third expansion phase of Aramco's Jafurah gas field in Saudi Arabia, with the order booked in Q4 2024 [1][4] - The company will provide advanced electric motor-driven compression solutions, utilizing its expanded Damman Center in Dammam, Saudi Arabia, enhancing its long-standing partnership with Aramco [2][4] - The advanced gas compression technology from Baker Hughes is expected to support efficient and reliable production from the Jafurah field, aligning with Aramco's vision and contributing to Saudi Arabia's energy development [3] Company Overview - Baker Hughes is an energy technology company that offers solutions to energy and industrial customers globally, with over a century of experience and operations in more than 120 countries [3] - The company focuses on innovative technologies and services aimed at making energy safer, cleaner, and more efficient [3]