Core Insights - Baker Hughes, Hanwha Power Systems, and Hanwha Ocean have signed a Joint Development and Collaboration Agreement (JDCA) to develop a new small-size turbine for ammonia applications, which will utilize Baker Hughes' gas turbine technology and Hanwha's ammonia combustion system [1][2] - The new ammonia turbine is designed for marine, onshore, and offshore applications, including electric generation and mechanical drive [1][2] Group 1: Ammonia as a Fuel - Ammonia is identified as a critical fuel for decarbonizing hard-to-abate sectors such as marine, oil and gas, and power [2][8] - Hanwha Ocean will primarily benefit from the JDCA by adopting the new ammonia turbine as a propulsion system for future vessels, contributing to maritime decarbonization [2][4] Group 2: Development Timeline and Goals - Hanwha has successfully tested a proof-of-concept combustor using 100% ammonia, while Baker Hughes completed initial turbine feasibility studies in 2024 [3][6] - The companies aim to complete full engine testing with ammonia by the end of 2027, after which the turbine, expected to have a power range of approximately 16MW, will be commercially available for orders [3][6] Group 3: Industry Impact and Statements - The collaboration is seen as a significant step towards accelerating the transition to low-carbon fuel propulsion in the global maritime industry [4][5] - Executives from both companies emphasize the importance of partnerships in achieving emissions reductions and enhancing the adoption of ammonia as a fuel [4][5]

Core Insights - Baker Hughes has secured a significant multi-year contract from ExxonMobil Guyana to supply specialty chemicals and related services for the Uaru and Whiptail offshore developments in Guyana's Stabroek Block [1][2] - The contract encompasses all necessary chemicals for the Errea Wittu and Jaguar FPSO vessels, which are expected to commence production in 2026 and 2027, respectively [2][3] - Each FPSO will have a production capacity of 250,000 barrels per day, contributing to a total production capacity of approximately 1.3 million barrels per day for Guyana [3] Company Background - Baker Hughes is an energy technology company with a century of experience, operating in over 120 countries, and focuses on providing innovative solutions to energy and industrial customers [5] - The company has established a strong local presence in Guyana, including the opening of a multimodal supercenter in Georgetown in 2022 [4] Industry Context - The Uaru and Whiptail projects represent ExxonMobil Guyana's fifth and sixth developments in the country, which will include up to 20 drill centers and 92 production and injection wells [3] - Baker Hughes' expertise in oilfield and industrial chemicals positions it well to support complex FPSO operations in the region [3]

Core Viewpoint - Baker Hughes Company is conducting its Q4 2024 earnings conference call, highlighting its financial performance and future outlook [1][3]. Group 1: Company Overview - The conference call is hosted by Chase Mulvehill, Vice President of Investor Relations, with participation from Lorenzo Simonelli, Chairman & CEO, and Nancy Buese, CFO [2][3]. - The earnings release for Q4 2024 is available on the company's website, along with a presentation for the conference call [3]. Group 2: Financial Performance - The call will include forward-looking statements regarding the company's performance, which are subject to various risks and assumptions [4].

Core Insights - Baker Hughes Company (BKR) reported fourth-quarter 2024 adjusted earnings of 70 cents per share, exceeding the Zacks Consensus Estimate of 63 cents and improving from 51 cents a year ago [1][2] - Total quarterly revenues reached $7,364 million, surpassing the Zacks Consensus Estimate of $7,094 million and increasing from $6,835 million in the previous year [2] Dividend Announcement - As of January 31, 2025, Baker Hughes declared a quarterly cash dividend of 23 cents per share, a 10% increase from the previous dividend of 21 cents per share, payable on February 21, 2025 [3] Segment Performance - The company reorganized into two operating segments: Oilfield Services and Equipment, and Industrial and Energy Technology, effective October 1, 2022 [4] - Revenues from the Oilfield Services and Equipment unit were $3,871 million, down 2% from $3,956 million a year ago, and below the estimate of $3,884 million [4] - Operating income from this segment increased to $526 million, up 7% from $492 million in the fourth quarter of 2023, driven by favorable pricing and efficiency gains [5] - Revenues from the Industrial & Energy Technology unit amounted to $3,492 million, up 21% from $2,879 million a year ago, exceeding the estimate of $3,223 million [5] - Operating income from this segment rose to $584 million, a 42% increase from $412 million in the previous year, attributed to higher volumes and improved productivity [6] Costs and Expenses - Total costs and expenses for the fourth quarter were $6,699 million, up from $6,183 million a year ago, and higher than the projected $6,134.4 million [7] Orders and Free Cash Flow - Total orders from all business segments reached $7,496 million, a 9% increase year over year from $6,904 million, although below the expected $9,753.7 million [8] - Free cash flow generated in the quarter was $894 million, compared to $633 million a year ago [9] Capital Expenditure and Balance Sheet - Net capital expenditure for the fourth quarter was $295 million, with cash and cash equivalents of $3,364 million as of December 31, 2024 [11] - Long-term debt stood at $5,970 million, resulting in a debt-to-capitalization ratio of 26.1% [11]

4Q & FY 2024 Results January 31, 2025 Copyright 2025 Baker Hughes Company. All rights reserved. This presentation (and oral statements made regarding the subjects of this presentation) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a "forward-looking statement"). The words "anticipate," "believe," "ensure," "expect," "if," "intend," "estimate," "project," "foresee," ...

Core Insights - Baker Hughes reported strong fourth-quarter results, highlighting its strategic initiatives in energy transition technologies [2][6] - The company achieved a 37.3% year-over-year increase in adjusted EPS, reaching $0.70, and a 7.7% rise in revenue to $7.364 billion, surpassing analyst expectations [2][3] - The focus on low-carbon solutions and technological innovation positions Baker Hughes favorably within the evolving energy sector [4][5] Financial Performance - Adjusted EPS for Q4 2024 was $0.70, compared to $0.62 consensus and $0.51 in Q4 2023, reflecting a 37.3% increase [3] - Revenue increased to $7.364 billion, exceeding the $7.069 billion estimate and up from $6.835 billion in Q4 2023, marking a 7.7% growth [3] - Adjusted EBITDA rose by 20.1% to $1.310 billion, while free cash flow jumped 41.2% to $894 million, driven by improved operational performance [3][7] Strategic Initiatives - The company is focusing on energy transition, with a 24% year-over-year increase in industrial and energy technology orders [6] - The industrial & energy technology segment saw a revenue increase of 21%, with gas technology solutions demand surging by 44% [6] - Baker Hughes is leading in hydrogen-fueled power systems and carbon capture technology, aiming to capture market share in alternative energy [5] Future Outlook - Management is optimistic about maintaining focus on energy transition technologies, anticipating growth driven by the industrial & energy technology segment [8] - The company aims for a 20% EBITDA margin from its oilfield services & equipment segment by 2025 [8] - Investors should monitor developments in strategic energy transition projects, including partnerships in hydrogen energy and carbon capture initiatives [9]

Core Insights - Baker Hughes (BKR) reported quarterly earnings of $0.70 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and up from $0.51 per share a year ago, representing an earnings surprise of 11.11% [1] - The company achieved revenues of $7.36 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.81%, compared to $6.84 billion in the same quarter last year [2] - Baker Hughes has outperformed the S&P 500, gaining about 5% since the beginning of the year, while the S&P 500 has gained 2.7% [3] Earnings Outlook - The future performance of Baker Hughes' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] - Current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $6.58 billion, and for the current fiscal year, it is $2.55 on revenues of $27.95 billion [7] Industry Context - The Oil and Gas - Field Services industry, to which Baker Hughes belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Baker Hughes' stock may also be influenced by the overall outlook for the industry [8]

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered three new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in Germany to support the growing demand in the region [1]. - Strategic partnerships were formed with local retailers to enhance market penetration [2]. Topic 3: Product Development - Launched two new product lines, which accounted for 25% of total revenue in the last quarter [3]. - R&D investment increased by 10% to accelerate innovation and product differentiation [4]. - Customer feedback on the new products has been overwhelmingly positive, with a 90% satisfaction rate [1]. Topic 4: Operational Efficiency - Implemented a new supply chain management system, reducing delivery times by 15% [2]. - Automation of manufacturing processes led to a 5% reduction in production costs [3]. - Employee training programs were expanded, resulting in a 10% increase in productivity [4]. Topic 5: Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [1]. - Introduced eco-friendly packaging for all product lines, reducing plastic usage by 20% [2]. - The company was recognized with a sustainability award for its efforts in reducing environmental impact [3].

Core Insights - Baker Hughes Company reported exceptional fourth-quarter results for 2024, achieving new records in revenue, free cash flow, and adjusted measures of EPS, EBITDA, and EBITDA margin, indicating successful execution of its profitable growth strategy [4][5][18] - The company anticipates continued strong EBITDA growth in 2025, primarily driven by its Industrial & Energy Technology (IET) segment [4][5] Fourth-Quarter Highlights - Orders for the fourth quarter reached $7.5 billion, with IET orders contributing $3.8 billion, reflecting strong demand in LNG and gas infrastructure [5][7] - Revenue for the quarter was $7.4 billion, representing an 8% year-over-year increase [7][18] - Net income attributable to Baker Hughes was $1.2 billion, a 168% increase year-over-year, with GAAP diluted EPS at $1.18 and adjusted diluted EPS at $0.70 [7][27] - Adjusted EBITDA for the quarter was $1.31 billion, up 20% year-over-year [7][23] Full-Year Highlights - Total orders for 2024 amounted to $28.2 billion, with IET orders at $13 billion, marking the second-highest order year ever for the company [5][40] - Full-year revenue was $27.8 billion, a 9% increase compared to 2023 [7][40] - Attributable net income for the year was $2.98 billion, with adjusted EBITDA reaching $4.59 billion, a 22% increase year-over-year [7][40] Segment Performance - The IET segment saw significant growth, with orders increasing by 24% year-over-year to $3.76 billion and revenue rising by 21% to $3.49 billion [36][37] - The Oilfield Services & Equipment (OFSE) segment experienced a decline in orders and revenue, with fourth-quarter revenue at $3.87 billion, down 2% year-over-year [31][40] Strategic Initiatives - Baker Hughes is focused on achieving a 20% EBITDA margin target for its OFSE segment in 2025 and for IET by 2026, supported by ongoing transformation actions [5][4] - The company announced a 10% increase in its quarterly dividend to $0.23, reflecting confidence in its earnings and free cash flow durability [5][4] Market Position and Awards - Baker Hughes secured multiple project awards in the LNG sector, including a major contract for a modularized LNG system and power island [10][11] - The company continues to strengthen its position in gas infrastructure, evidenced by significant contracts in Saudi Arabia and various service agreements in the LNG sector [9][11][12]

Core Points - Baker Hughes announced an increased quarterly cash dividend of $0.23 per share, reflecting a 10% increase compared to the same quarter last year [1] - The dividend will be payable on February 21, 2025, to shareholders of record on February 11, 2025 [1] - The company expects to fund the dividend from cash generated from operations [1] Company Overview - Baker Hughes is an energy technology company providing solutions to energy and industrial customers globally [2] - The company has over a century of experience and operates in more than 120 countries [2] - Baker Hughes focuses on innovative technologies and services aimed at making energy safer, cleaner, and more efficient [2]