Oilfield service major Baker Hughes is going to be cautious about its financial performance outlook this year, due to “broader macro and trade policy uncertainty,” most likely meaning tariffs, the company said in its first-quarter financial report.
Baker Hughes booked net profits of $509 million, which was down from $694 million for the last quarter of 2024 on a GAAP basis, which represented a 27% decline. Cash flow from operating activities was down by 40%, to $709 million from $1.189 billion three months earlier. Free cash flow stood at $454 million at the end of March 2025, down 49% from the $894 million booked for the final quarter of 2024.
The company also reported a decline in both its domestic and international operations during the first quarter. The North American decline stood at 5% and the international hit 11% during the period, after a year when international operations growth largely offset domestic declines for the oilfield service sector.
“Although our outlook is tempered by broader macro and trade policy uncertainty, we remain confident in our strategy and the resilience of our portfolio. We believe Baker Hughes is well positioned to navigate near-term challenges and deliver sustainable growth in shareholder value,” CEO Lorenzo Simonelli said.
Reuters cited the company as saying at the presentation of its first-quarter results it had estimated a potential minimum impact of the tariffs at between $100 million and $200 million for its business. That impact calculation was based on tariff application during the 90-day pause period that President Trump granted trade partners with the exception of China.
The effect of tariffs on Baker Hughes’ operations beyond that 90-day window have not been estimated. Still, analysts believe Baker Hughes is more immune to the adverse effects of tariffs than its peers thanks to its thriving Industrial and Energy Technology business division that focuses on LNG.
By Irina Slav for Oilprice.com
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