Curious about Baker Hughes net worth and its financial journey?
In this article, I’ll break down Baker Hughes’ financial performance, uncover revenue growth drivers, and explore key business segments.
Let’s dive into how this global firm is shaping the energy technology landscape with Ando Money’s insights.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Baker Hughes |
| Full Name | Baker Hughes Company |
| Industry | Energy Technology |
| Traded as | Nasdaq: BKR |
| ISIN | US05722G1004 |
| Founded | 1908 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Houston, Texas & London, UK |
| Chief Executive Officer | Lorenzo Simonelli |
| Number of Employees | N/A |
| Market Cap | $36.21 billion (as of September 2024) |
| Total Assets | $36.66 billion (June 2024) |
| Total Equity | N/A |
| Revenue | $7.1 billion (Q2 2024) |
| Net Income | $579 million (Q2 2024) |
What is the Net worth/Market Cap of Baker Hughes in 2024?
As of September 2024, Baker Hughes’ market cap stands at $36.21 billion. This valuation ranks the company among notable energy technology firms and places it prominently in the global industry.
The firm has demonstrated consistent growth, contributing to its strong market position.
When considering Baker Hughes’ financial prowess, it’s essential to compare its market cap with other leading companies to understand its place in the broader financial landscape.
Here are a few companies related to Baker Hughes, either as competitors or partners:
- Halliburton
- Schlumberger
- Weatherford International
- TechnipFMC
- General Electric
- Siemens Energy
- National Oilwell Varco (NOV)
- Caterpillar Inc.
- Aker Solutions
- Honeywell
To explore how Baker Hughes compares to other top-performing companies, check out this overview of the richest companies.
Financial Performance Overview
Baker Hughes saw a notable increase in its financial metrics in 2024, particularly in the second quarter.
With $7.1 billion in revenue, the firm experienced a 13% growth year-over-year, reflecting a robust financial position.
This growth has been attributed to increased demand across its segments and efficient cost management.
The company’s net income also saw a significant rise, reaching $579 million.
With a focus on strategic investments, improved operational efficiency, and streamlined costs, Baker Hughes is on a positive trajectory, showcasing its capability to adapt to market conditions.
Revenue Breakdown by Business Segments
Baker Hughes operates through two main segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). Both have played crucial roles in driving revenue growth:
- OFSE Revenue: Accounted for $4.01 billion in Q2 2024, contributing significantly to the firm’s total revenue. This segment focuses on oilfield services, equipment, and technology, establishing a solid market position.
- IET Revenue: Reached $3.13 billion in Q2 2024, representing a 19% sequential increase and 28% year-over-year growth. This segment caters to industrial solutions, primarily focused on energy technology, equipment, and services.
Significant Orders and Their Financial Impact
During Q2 2024, Baker Hughes secured orders totaling $7.5 billion, with a significant portion coming from IET.
A landmark order includes $3.5 billion in IET contracts, such as the SONATRACH project for gas-boosting in Algeria.
This substantial order backlog, combined with diverse contracts from partners like Petrobras, has strengthened the firm’s revenue growth and broadened its portfolio.
Key Revenue Streams Driving Profitability
Revenue is primarily driven by various product lines and services.
The Well Construction line generated a consistent stream of income, while Completions, Intervention & Measurements also contributed significantly to overall profitability.
Additionally, the Subsea & Surface Pressure Systems experienced growth, enhancing Baker Hughes’ diversified revenue channels.
Operational Efficiency and Cost Management
The firm’s focus on operational efficiency is evident in its Adjusted EBITDA of $1.13 billion, which marks a 25% increase year-over-year.
This growth reflects an emphasis on cost control, strategic management, and a clear focus on operational performance.
The company’s adjusted operating income reached $847 million, highlighting its ability to deliver strong margins despite market challenges.
Free Cash Flow and Shareholder Returns
Baker Hughes reported $106 million in free cash flow for Q2 2024, showcasing financial stability and liquidity.
In terms of shareholder value, the firm returned a total of $375 million through dividends and share repurchases, signifying its commitment to delivering tangible returns.
Geographic Revenue Distribution and Market Trends
The firm’s revenue distribution spans various regions, with strong performance in North America and growth in Europe/CIS/Sub-Saharan Africa.
The Middle East/Asia also demonstrated resilience, contributing to the global revenue landscape.
These diverse market trends allow the firm to maintain a balanced revenue structure and mitigate risks associated with any one region.
Financial Impact of Strategic Partnerships and Contracts
Strategic partnerships, particularly with firms like Petrobras and SONATRACH, have been instrumental in shaping Baker Hughes’ financial performance.
These alliances are not only increasing its revenue streams but also positioning the firm as a key player in the energy technology market.
Financial Indicators of Performance and Stability
The company’s financial indicators, such as operating income of $833 million and adjusted net income of $568 million, highlight its financial stability.
These metrics provide insights into Baker Hughes’ profitability, growth potential, and overall financial health.
FAQs About Baker Hughes
What are the Main Business Segments of Baker Hughes?
Baker Hughes operates through two primary segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET).
How Does Baker Hughes Generate Revenue?
Baker Hughes generates revenue from various product lines, including Well Construction, Completions & Intervention, and Subsea Systems, contributing to its growth.
What Is the Role of Strategic Partnerships in Baker Hughes’ Growth?
Partnerships with companies like Petrobras and SONATRACH have significantly contributed to revenue growth, particularly in energy technology and oilfield services.
How Has Baker Hughes Managed Its Operational Costs?
The company emphasizes operational efficiency and cost management, reflected in its increasing EBITDA and operating income.
What Are the Financial Indicators of Baker Hughes’ Stability?
Key financial indicators include an operating income of $833 million and an adjusted EBITDA of $1.13 billion, signifying financial strength.
Conclusion
I hope this overview provides valuable insights into Baker Hughes’ financial performance. For more content on financial analysis and updates, visit Ando Money.
Feel free to share your thoughts or explore further articles on our site!
