My Letter to Shareowners

Today we published our 2017 Annual Report and my letter to shareholders. This is our first Annual Report as Baker Hughes, a GE company, and 2017 represented just the beginning for BHGE:

Technology continues to differentiate us as a company. Last year, we remained focused on this core strength, investing more than $600 million combined in research and development. We launched more than 240 new products and received more than 2,800 patents. We also made progress toward our three financial goals despite the difficult macro environment - securing several major commercial wins and delivering record performance for our customers. Highlights included winning our first fullstream deal with Twinza Oil Limited, an integrated North Sea project with Siccar Point Energy and our largest-ever digital order. We also made steady progress on our integration and began to deliver on the commitments we made to shareholders. We have more work to do, but we are proud of our early successes.

Looking ahead to 2018 and beyond, our customers are aiming to sustainably reduce both capital and operating expenditures. They expect solutions that will improve productivity and efficiency and leverage economies of scale to deliver higher industrial yield with lower carbon impact. Our strategy to deliver on these customer needs and expectations is based on the following three growth pillars: market-leading product companies, integrated systems and fullstream. We have set bold targets for these three pillars: 50% improvement in core competitiveness, or the cost of doing business; 50% improvement in productivity, measured at the integrated service level; and 50% improvement in industrial yield. This is our “50-50-50” plan.

The world needs more energy, but delivered with greater efficiency, at lower cost and with a reduced carbon footprint. We have laid the foundation to deliver on our purpose of inventing smarter ways to bring energy to the world. With our talented people and unique set of products and services, BHGE can, and will, deliver. We look forward to working with our employees and customers in the months and years ahead, as we continue on this journey together.

Read my full letter to shareholders and check out our full Annual Report.