Supply chain issues, Russian exit force Q2 loss for Baker Hughes
Global oilfield services company Baker Hughes said July 20 supply chain issues and the suspension of its activities in Russia contributed to a Q2 2022 net loss of $839mn, against net earnings of $72mn in Q1 2022 and a loss of $68mn in Q2 2021.
“Our second quarter results were mixed as each product company navigated a different set of challenges ranging from component shortages and supply chain inflation to the suspension of our Russian operations,” CEO Lorenzo Simonelli said. Oilfield services (OFS) and turbomachinery and process solutions (TPS) are managing “fairly well”, he said, but oilfield equipment (OFE) and digital solutions (DS) “have both had more difficulty.”
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OFS was boosted by continued customer interest in electrical submersible pumps and artificial lift solutions, largely with a new three-year contract to supply pumps in the Permian basin.
TPS, meanwhile, secured a major contract from Bechtel to provide seven mid-scale liquefaction trains to Cheniere Energy’s Corpus Christi Stage 3 project, and two contracts to supply refrigerant turbocompressor strings to New Fortress Energy for its Fast LNG projects.
The suspension of activities in Russia, largely related to the global curtain of sanctions pulled down on Vladimir Putin’s regime, led to a $365mn charge in Q2, Baker Hughes said.