Baker Hughes secures Aramco Jafurah field expansion order

HOUSTON - Baker Hughes (NASDAQ:BKR), a global energy technology firm with a market capitalization of $42.6 billion and a perfect Piotroski Score of 9 according to InvestingPro, has secured a contract to supply six gas compression trains and six propane compressors for the third expansion phase of Saudi Aramco (TADAWUL:2222)’s Jafurah gas field, the company announced today. This order, which was booked in the fourth quarter of 2024, will utilize Baker Hughes’ advanced electric motor-driven compression solutions and support the development of the largest unconventional gas field in Saudi Arabia.

The technology provided by Baker Hughes is expected to enhance the efficiency and reliability of gas production at the Jafurah field. The company’s expanded Damman Center in Dammam, Saudi Arabia, will play a key role in delivering these state-of-the-art technologies.

Baker Hughes has a history of collaboration with Aramco, having previously supplied compression solutions for the Haradh and Hawiyah gas plants, the first phase of the Jafurah gas plant, and equipment for the third phase of Saudi Arabia’s Master Gas System project.

Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes, stated that their advanced gas compression technology aligns with Aramco’s vision and contributes to the energy development in Saudi Arabia. He emphasized the importance of gas as a reliable and lower-carbon energy source.

Baker Hughes operates in over 120 countries, offering innovative technologies and services designed to make energy safer, cleaner, and more efficient. With annual revenue of $27.3 billion and a strong return of over 50% in the past year, the company continues to demonstrate robust financial performance. This recent order underscores the company’s commitment to supporting key energy projects worldwide.InvestingPro analysis reveals 12 additional investment tips for Baker Hughes, including detailed insights about its dividend history and growth potential. Access the comprehensive Pro Research Report for deep-dive analysis of what really matters about Baker Hughes and 1,400+ other top stocks.

The financial details of the contract have not been disclosed. Operating with a moderate debt-to-equity ratio of 0.37 and trading near its 52-week high, Baker Hughes maintains a strong financial position. The information for this report is based on a press release statement from Baker Hughes.

In other recent news, Baker Hughes continues to make strides in its operational and financial performance. Earnings and revenue results show the company’s total revenue reaching $27.3 billion, with an EBITDA of $4.3 billion over the last twelve months. The company’s Gas Tech Services segment has been a significant contributor, accounting for approximately 25% of the Industrial Energy Technology (IET) revenue.

In terms of mergers and expansions, Baker Hughes secured a contract for a liquefied natural gas (LNG) project in Louisiana and expanded operations in Namibia with a new liquid mud plant at Walvis Bay Port. The company also secured substantial contracts with Petrobras, a Brazilian state-run oil company, to supply flexible pipe systems for Brazil’s pre-salt oilfields.

On the analyst front, Benchmark reaffirmed a Buy rating for Baker Hughes stock with a $42 target. JPMorgan maintained its Overweight stock rating for Baker Hughes with a steady price target of $50.00, while Goldman Sachs and RBC Capital Markets raised their stock targets to $52 and $49, respectively. These adjustments reflect the company’s diverse portfolio and robust revenue growth. These are the recent developments that investors should consider.

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