Street Calls of the Week
HOUSTON/LONDON - Baker Hughes (NASDAQ:BKR), the $46.5 billion energy technology company trading near its 52-week high, announced Wednesday a multi-year agreement with Petrobras to extend the deployment of its Blue Marlin and Blue Orca stimulation vessels in Brazil’s offshore oil and gas fields. According to InvestingPro data, Baker Hughes maintains a "GREAT" financial health score, suggesting strong operational capabilities.
The vessels will deliver chemical treatments to stimulate wells in both brownfield and greenfield developments across multiple basins, while also supporting well construction through gravel pack and frac pack operations.
Blue Marlin has operated in Brazil since 2008, while Blue Orca joined operations in 2023. As of September 1, the vessels have recorded more than 650 perfect health, safety and environment (HSE) days, according to the company’s press release statement.
"Stimulation vessels are critical for optimizing production and limiting costly downtime in offshore fields," said Amerino Gatti, executive vice president of Oilfield Services & Equipment at Baker Hughes.
The vessels combine trained crews with onboard laboratories, high-pressure pumping systems and chemical storage capabilities, allowing them to provide treatments engineered for specific well requirements and perform multiple stimulation operations without returning to port.
Baker Hughes noted that the majority of chemicals used by the vessels will be sourced in Brazil, supporting the company’s localization strategy in the country.
The contract was awarded following an open tender process and includes the provision of associated chemicals and services, though financial terms were not disclosed. For investors seeking deeper insights into Baker Hughes’s financial outlook and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, available alongside 8 additional exclusive ProTips and extensive financial metrics.
In other recent news, Baker Hughes has received an order to supply main liquefaction equipment for Train 4 of NextDecade’s Rio Grande LNG facility in Brownsville, Texas. This equipment will enhance the facility’s production capacity by approximately 6 million tonnes per annum. Additionally, Baker Hughes has signed a 90-month service agreement with bp for the Tangguh LNG plant in Indonesia, providing spare parts and engineering support for critical turbomachinery. Analyst activity around Baker Hughes includes Stifel reiterating a Buy rating, highlighting the company’s improved margin profile despite challenges in the U.S. land market. Melius Research has also initiated coverage with a Buy rating and a price target of $60.00. Meanwhile, BofA Securities has adjusted its price target for Baker Hughes to $190.00, maintaining a Neutral rating. These developments underscore Baker Hughes’ ongoing transformation and its significant role in global energy and industrial technology.
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