Baker Hughes Announces Streamlined Organization to Improve Profitability and Growth Position

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Summary

  • Establishment of two reporting lines of business: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET).
  • Accelerate strategic transformation to simplify and improve operations, improve profitability while positioning for growth with customers in the energy and industrial markets.
  • Expects to achieve at least $150 million in cost reductions, maximizing shareholder value.

HOUSTON and LONDON, September 12, 2022 /CSRwire/Baker Hughes Company (NASDAQ: BKR) (“Baker Hughes” or the “Company”) announced that it is restructuring and streamlining its organization and accelerating its strategic transformation. These changes will simplify operations, improve profitability and drive growth, meeting customer needs and delivering solutions in rapidly changing energy and industrial markets.

“We have continually ensured that Baker Hughes can operate in any environment and play a clear role in helping to solve the energy trilemma – balancing energy security, sustainability and affordability. Today, we are deliberately taking the next step in our strategic journey to transform and simplify our operations and position Baker Hughes for the future,” said Laurent Simonelli, Chairman and CEO of Baker Hughes. “Our updated structure will allow us to deliver the technologies the energy transition will demand by further strengthening our relationships with our existing customers and enabling greater operational flexibility, maintaining size and scale to maximize technology investments. and returns of capital to our shareholders.”

Baker Hughes is restructuring its four product companies to focus on two business lines and streamlining its corporate structure, which is expected to provide at least $150 million cost savings and form the basis for further margin improvement. Efficient October 1stthe Company will be formally restructured into two business segments:

  • Oilfield Services and Equipment (OFSE) incorporates the current product companies Oilfield Services (OFS) and Oilfield Equipment (OFE).
  • Industrial and Energy Technology (IET) incorporates current product companies Turbomachinery & Process Solutions (TPS) and Digital Solutions (DS).

After identifying OFSE and IET as the two main areas of activity in 2021, Baker Hughes has carefully assessed all aspects of the company’s long-term strategy, business performance, organizational structure and market outlook across all of its businesses. This transformation is the next step in the company’s journey to create the preeminent energy technology company, positioning itself for the changes unfolding in the energy landscape.

Baker Hughes will also make changes to its leadership team who will report to Laurent Simonelli. Efficient October 1st:

  • Maria Claudia Borras is Executive Vice President (EVP) of OFSE. Borras previously served as executive vice president of OFS since 2017.
  • Rod Christie is EVP of the IET. Christie was previously EVP of TPS since 2017.
  • Jim Apostolides is Senior Vice President (SVP) of Corporate Operational Excellence, a newly created role to improve coordination and alignment of key operational areas. Apostolides will supervise the consolidated accounts of the Company Supply Chain Centers of Excellence; Health, Safety, Environment and Quality (HSEQ); and environmental, social and governance (ESG) functions. He previously served as Senior Vice President of Corporate Excellence and has been with the company for 23 years.

“Three years ago, we set ourselves the bold ambition of being an energy technology company and moving energy forward. We could not have achieved our goals without the commitment and perseverance of our entire management team,” said Laurent Simonelli. “I would like to thank our outgoing leaders for their important contributions to executing our strategy as they seek out new opportunities.”

In a very dynamic environment, Baker Hughes continues to work diligently to improve operational execution and reshape the organization. The Company will continue to execute on its strategic priorities with the goal of improving returns, generating strong free cash flow and delivering shareholder value and returns.

Laurent Simonelli will be presenting at the Barclays CEO Energy-Power Conference today in 12:40 p.m. ET. A live webcast and replay will be available to watch here.

About Baker Hughes:
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Backed by a century of experience and operating in more than 120 countries, our innovative technologies and services advance energy – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerughes.com.

Forward-looking statements:
This press release (and oral statements made regarding the subjects of this release) 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”, “assure”, “expect”, “if”, “intend”, “estimate”, “project”, “expect”, “expect”, “predict “, “prospects”, “aim”, “want”, “could”, “should”, “potential”, “would”, “could”, “probable”, “probable” and similar expressions, as well as their negative , are intended to identify forward-looking statements. There are numerous risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s Annual Report on Form 10-K for the annual period ended. December 31, 2021; subsequent quarterly reports of the Company on Form 10-Q for quarterly periods ended March 31, 2022 and June 30, 2022; and those set forth from time to time in other documents filed with the Security and Exchange Commission (“SECOND”). The documents are available on the Company’s website at the following address: www.investors.bakerhughes.com or via the SEC’s Electronic Data Collection and Analysis System (“EDGAR”) at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement.

For more information please contact:

Investor RelationsJud Bailey+1 281-809-9088
[email protected]

Media RelationsThomas Millas+1 713-879-2862
[email protected]

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Baker Hughes (NYSE: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Backed by a century of experience and with operations in more than 120 countries, our innovative technologies and services drive energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at www.bakerhughes.com.

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