BAKU, Azerbaijan, February 3. In the fourth quarter of 2023, Baker Hughes, a leading energy technology company providing solutions for global energy and industrial customers, recorded robust financial results, Trend reports.
Revenue for the quarter reached $6,835 million, marking a sequential increase of 3 percent and a significant year-over-year surge of 16 percent. This growth in revenue was primarily attributed to heightened volume in both Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE) segments.
The company's total book-to-bill ratio for the quarter stood at 1.0, indicating balanced demand, while the IET book-to-bill ratio was even stronger at 1.1.
Operating income on a GAAP basis for the fourth quarter of 2023 totaled $651 million, representing a sequential decrease of $62 million and a year-over-year decline of $12 million. However, total segment operating income saw a positive trajectory, reaching $904 million, marking a 12 percent sequential increase and a 14 percent year-over-year rise.
Adjusted operating income, a non-GAAP measure, for the fourth quarter of 2023 reached $816 million, excluding adjustments totaling $165 million before tax. This adjusted figure reflected a notable 14 percent sequential increase and an impressive 18 percent year-over-year growth. Depreciation and amortization for the same period amounted to $274 million.
Adjusted EBITDA, another non-GAAP measure, for the fourth quarter of 2023 was $1,091 million, excluding adjustments totaling $165 million before tax. This represented an 11 percent sequential increase and a robust 15 percent year-over-year growth. The upsurge in adjusted operating income and adjusted EBITDA was primarily driven by increased volume in IET and improved pricing in OFSE, partially offset by higher research and development (R&D) expenditure in IET.
The year-over-year improvement in adjusted operating income and adjusted EBITDA was propelled by volume and pricing enhancements in both segments, alongside structural cost-out initiatives. However, these gains were partially offset by cost inflation in both segments, as well as higher equipment mix and increased R&D expenditure in IET.
Corporate costs for the fourth quarter of 2023 were $88 million, reflecting a 7 percent sequential decrease and a notable 12 percent year-over-year decline.
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