Baker Hughes Company (BKR) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 19, 2023 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, ladies and gentlemen, and welcome to the Baker Hughes Company First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, this conference call is being recorded.

I’d now like to introduce your host for today’s conference Mr. Jud Bailey, Vice President of Investor Relations. Sir, you may begin.

Jud Bailey - VP, IR

Thank you. Good morning, everyone, and welcome to the Baker Hughes first quarter 2023 earnings conference call. Here with me are our Chairman and CEO, Lorenzo Simonelli; and our CFO, Nancy Buese. The earnings release we issued earlier today can be found on our Web site at bakerhughes.com.

We will also be using a presentation with our prepared remarks during this webcast, which can also be found on our Investor website. As a reminder, during the course of this conference call, we will provide forward-looking statements. These statements are not guarantees of future performance and involve a number of risks and assumptions.

Please review our SEC filings and website for a discussion of the factors that could cause actual results to differ materially. As you know, reconciliations of operating income and other GAAP to non-GAAP measures can be found in our earnings release.

With that, I will turn the call over to Lorenzo.

Lorenzo Simonelli - Chairman & CEO

Thank you, Jud. Good morning, everyone, and thanks for joining us. We were pleased with our first quarter results and remain optimistic on the outlook for 2023.

As you can see on Slide 4, we maintained our strong order momentum in IET and SSPS. We also delivered solid operating results at the high-end of our guidance in both business segments, booked almost $300 million of new energy orders and generated approximately $200 million of free cash flow.

Turning to Slide 5. While 2023 has already started off with some macro volatility, we remain optimistic on the outlook for Energy Services and Baker Hughes. Our diverse portfolio features long-cycle and short-cycle businesses that position us well to navigate any periods of variability that may occur across the energy sector.

Despite the elevated recession risk for major developed economies, we expect the supply-demand balance in the global oil markets to gradually tighten over the course of the year. Factors driving this include China's economy recovering, non-OECD demand continuing to grow and OPEC+ remaining proactive in maintaining adequate and stable oil price levels.