BAKU, Azerbaijan, July 22
By Leman Zeynalova – Trend:
International revenue of Baker Hughes was $1,807 million, a decrease of 15 percent sequentially, driven by Latin America, Sub-Saharan Africa, and the Middle East, Trend reports citing the company.
Revenue declined across all product lines. Segment operating income before tax for the quarter was $46 million.
Oilfield Services revenue of $2,411 million for the second quarter decreased by $728 million, or 23 percent, sequentially. North America revenue was $604 million, down 41 percent sequentially. Operating income for the second quarter of 2020 was down $160 million, or 78 percent, sequentially, primarily driven by lower volume and unfavorable business mix, partially offset with lower fixed costs.
Oilfield Equipment (OFE) orders were up $82 million, or 13 percent, year-over-year, driven primarily by higher order intake in the Subsea Production Systems business, partially offset by lower orders across most segments. Equipment orders were up 54% and services orders were down 33 percent year-over-year.
OFE revenue of $696 million for the quarter increased $3 million year-over-year. The increase was driven by higher volume in the Subsea Production Systems, Flexible Pipe, and Subsea Drilling Systems businesses, offset by lower volume in Subsea Services and Surface Pressures Control. Segment operating loss before tax for the quarter was $14 million, a decline of $28 million year-overyear. The decline was driven primarily by impacts from lower productivity and unfavorable mix.
Turbomachinery & Process Solutions (TPS) orders were down 34% year-over-year. Equipment orders were down 48 percent and service orders were down 19 percent. TPS revenue of $1,161 million for the quarter decreased $244 million, or 17 percent, year-over-year. The decrease was driven by lower volume across both equipment and services. Equipment revenue in the quarter represented 36 percent of total segment revenue, and Service revenue represented 64 percent of total segment revenue. Segment operating income before tax for the quarter was $149 million, up $14 million, or 10 percent, year-over-year. The increase was driven primarily by cost productivity, partially offset by lower volume.
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