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The average time taken for BAKER HUGHES LIMITED to pay invoices has fluctuated over the past three periods, with a decrease in the first period (2018-01-01 to 2018-06-30), followed by an increase in the second period (2018-07-01 to 2018-12-31), and then a decrease again in the third period (2019-01-01 to 2019-06-30). However, in the most recent period (2021-01-01 to 2021-06-30), there has been a significant decrease in the average time taken to pay invoices compared to the previous two periods.
There has been some volatility in the percentage of invoices paid within 30 days, with a decrease in the first period (2018-01-01 to 2018-06-30), followed by an increase in the second period (2018-07-01 to 2018-12-31), and then a decrease again in the third period (2019-01-01 to 2019-06-30). However, in the most recent period (2021-01-01 to 2021-06-30), there has been a significant increase in the percentage of invoices paid within 30 days compared to the previous two periods.
In the most recent period (2021-01-01 to 2021-06-30), BAKER HUGHES LIMITED has shown a significant improvement in their payment practices, with the average time taken to pay invoices decreasing by 23% compared to the previous period (2020-07-01 to 2020-12-31). This improvement is also evident in the increase in the percentage of invoices paid within 30 days by 34%, and the decrease in the percentage of invoices paid later than 60 days by 30%.
| Reporting Period | Filing Date | Average Time to Pay (days) | Paid within 30 days | Paid 31-60 days | Paid after 60 days | Not Paid within Terms |
|---|---|---|---|---|---|---|
| 01 Jan 2022 - 30 Jun 2022 | 26 Jul 2022 | 28 | 61% | 27% | 12% | 32% |
| 01 Jul 2021 - 31 Dec 2021 | 31 Jan 2022 | 34 | 53% | 31% | 16% | 58% |
| 01 Jan 2021 - 30 Jun 2021 | 29 Jul 2021 | 31 | 59% | 24% | 16% | 62% |
| 01 Jul 2020 - 31 Dec 2020 | 29 Jan 2021 | 60 | 25% | 29% | 46% | 87% |
| 01 Jan 2020 - 30 Jun 2020 | 31 Jul 2020 | 54 | 25% | 38% | 37% | 76% |
| 01 Jul 2019 - 31 Dec 2019 | 30 Jan 2020 | 52 | 26% | 37% | 37% | 74% |
| 01 Jan 2019 - 30 Jun 2019 | 29 Jul 2019 | 51 | 27% | 38% | 35% | 74% |
| 01 Jul 2018 - 31 Dec 2018 | 28 Jan 2019 | 53 | 29% | 37% | 34% | 74% |
| 01 Jan 2018 - 30 Jun 2018 | 30 Jul 2018 | 47 | 29% | 40% | 31% | 70% |
This information is as reported by the business, and responses are in their own words.
Standard payment terms
Standard payment terms used by Baker Hughes Limited are 120 days, calculated from the date of reception of the invoice.
Were there any changes to the standard payment terms in the reporting period?
No information available
Any other information about payment terms
The 58% reported as invoices due not paid within agreed terms includes 29% in respect of invoices that have been set up in the ledger with 0 days payment terms to allow these invoices to be paid on the next available payment run. These invoices therefore distort the reported figure as they are included as not being paid within agreed terms. The terms are set at 0 following management’s decision to pay these invoices on the next available payment run – the average time taken to pay these invoices is 7 days. Baker Hughes Limited has introduced a number of sourcing initiatives including Global Payment Terms for certain Vendors and an incentivised move towards monthly payments for certain large Vendors. In addition, Baker Hughes Limited has implemented an invoice factoring program.
Maximum contractual payment period agreed
120
Complaints from suppliers about payment should be submitted to APServices@BakerHughes.com, where the dedicated team will manage the disputes ensuring they are resolved by discussion and agreement with the supplier. In addition, Baker Hughes Vendor Portal enables companies who supply Baker Hughes with goods or services to view invoice status over the internet, upon registration. This provides suppliers with the flexibility to securely check the status of invoices and remittance advice in the Baker Hughes accounting system anytime.
Has this business signed up to a code of conduct or standards on payment practices?
For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.
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Does this business offer e-invoicing in relation to qualifying contracts?
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
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Does this business offer supply chain finance?
This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
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Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
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During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No information available
Baker Hughes Limited is registered in England with SIC code 09100, support activities for petroleum and natural gas extraction, and is the UK entity within the global Baker Hughes group. The wider group provides oilfield services and equipment across drilling, completions, production, well intervention and subsea operations, alongside turbomachinery, gas turbines, compressors, pumps and process solutions for the oil, gas and industrial energy sectors. It also offers digital and remote monitoring tools, energy advisory services, and technologies for hydrogen, geothermal, carbon capture and emissions reduction. The registered office is in London. As described on its own website, the group states it aims to make energy safer, cleaner and more efficient.
Generated from the company's website and Companies House records. Sources: bakerhughes.com