Baker Hughes Incurs Loss in Russia, but Sees Promise in LNG
Attachment: BakerHughes2Q22
July 21, 2022--Researched by Industrial Info Resources (Sugar Land, Texas)--The one-two punch of inflation and the war in Ukraine clobbered Baker Hughes (NYSE:BKR) (Houston, Texas) in the second quarter. The oilfield services provider incurred a $426 million non-operating loss related to its suspended business in Russia, which equaled more than half of its $839 million net loss for the period. Executives acknowledged "the demand outlook for the next 12 to 18 months is deteriorating" as inflation eats away at consumers' pocketbooks.
Industrial Info is tracking about $35 billion in active projects involving Baker Hughes, including $16 billion worth in the U.S. Baker Hughes announced earlier this year that it would halt all new investments in Russia, and that it had stopped servicing Russia's liquefied natural gas (LNG) projects. The company generated up to 5% of its total sales from Russia, according to Bloomberg, and said it would continue with its already-contracted work there.
LNG projects account for more than $29 billion of the company's $35 billion in active global projects, including two major projects in Louisiana from Venture Global LNG Incorporated.
