Baker Hughes looks beyond oil and gas
Upstream services company Baker Hughes said July 21 its investment focus has been on “new energy frontiers.”
The oil and gas field services company has branched out into the clean energy segment, teaming with German startup Electrochaea in June to help develop synthetic natural gas (SNG) from CO2 and green hydrogen.
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“We continued to invest and collaborate in strategic areas for new energy frontiers, advancing our partnerships in hydrogen, carbon capture, utilisation and storage, and clean integrated power,” CEO Lorenzo Simonelli said.
Elsewhere, the company said in its financial report for the second quarter that it intends to become a major investor in the FiveT Hydrogen fund, helping to advance the development of hydrogen as a clean energy resource.
In its Q2 report issued July 21, the company reported revenue of $5.1bn during the three months ending June 30, up 12% sequentially and 4% year-on-year. Adjusted Ebitda of $611mn marked a year-on-year gain of 38% and a 9% improvement from the first quarter. Total free cash flow, meanwhile, was reported at $385mn in the second quarter, down 23% from the first quarter, but some 500% higher than during the same quarter last year.
Looking ahead, Simonelli said he expected to see improved demand for oil and gas as the global economy recovers from the deep losses experienced at the height of the pandemic last year.
“Although we recognize the risks presented by the variant strains of the COVID-19 virus, we expect spending and activity levels to gain momentum through the year as the macro environment improves, likely setting up the industry for stronger growth in 2022,” he said.