Baker Hughes Forecasts Dip In FY24 North American Oilfield Spending

At the fourth-quarter conference call yesterday, Baker Hughes Company BKR discussed guidance for 2024.

Yesterday, the company reported a fourth-quarter FY23 revenue increase of 16% Y/Y to $6.835 billion, missing the consensus of $6.915 billion, and adjusted EPS was $0.51, beating the consensus of $0.48.

For Q1 FY24, the company expects revenue of $6.1 billion-$6.6 billion (vs. consensus of $6.51 billion) and EBITDA of $880 million and $960 million. 

Also, for the first quarter, revenue from the industrial and energy technology (IET) business is projected to be $2.40 billion to $2.65 billion.

For FY24, Baker Hughes projects revenue of $26.5 billion-$28.5 billion (vs. consensus: $28.11 billion) and EBITDA of $4.1 billion-$4.5 billion, with expected new energy orders of $800 million to $1 billion, more than tripling since 2021. 

For 2024, the company expects LNG demand to increase by 2%, resulting in strong utilization rates, as it projects about 15 MTPA of nameplate capacity coming online this year. 

For FY24, the company now expects North American D&C spending to be down in the low-to-mid-single digits (vs. flattish expected prior), led by a decline in the mid-single digits in the U.S. 

This year, the company expects international D&C spending to grow in the high single-digit (down from its earlier guidance of low double-digit growth).

For FY25 and FY26, Baker Hughes is anticipated to witness a similar trend of supply growth led by demand growth, which should keep global LNG markets at good utilization levels. 

Price Action: BKR shares are trading higher by 0.40% at $30.16 premarket on the last check Thursday.

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