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HOUSTON - Baker Hughes (NASDAQ: NASDAQ:BKR), a global energy technology firm with annual revenue of $27.3 billion and a perfect InvestingPro Piotroski Score of 9, has secured a contract to provide equipment and services for Venture Global’s Plaquemines liquefied natural gas (LNG) project in Louisiana. The company will supply a modularized LNG system and power island, as well as offer a multi-year services frame agreement for maintenance and support of the project’s first two phases.
The equipment order and services agreement were finalized in the fourth quarter of 2024. Baker Hughes’ involvement is expected to bolster the production capacity of the Plaquemines LNG facility, which recently celebrated the departure of its first LNG cargo. The company’s strong financial position, with $2.24 billion in net income and a healthy 21.1% gross profit margin, positions it well for this major project.
Lorenzo Simonelli, chairman and CEO of Baker Hughes, emphasized the importance of LNG as a flexible fuel source to meet growing power demand and the company’s longstanding expertise in natural gas operations. Mike Sabel, CEO of Venture Global, expressed enthusiasm for the continued partnership with Baker Hughes, which has been a strategic LNG technology supplier for the company, contributing to over 100 million tons per annum (MTPA) of production capacity.
Baker Hughes has a history of providing LNG solutions to Venture Global, including for the Calcasieu Pass and Plaquemines LNG facilities. This new agreement underscores the company’s commitment to supporting sustainable energy development through reliable and efficient natural gas operations.
The partnership between Baker Hughes and Venture Global signifies ongoing efforts to deliver secure and reliable energy supplies globally. With revenue growth of 11.08% and moderate debt levels, analysts maintain a bullish outlook on Baker Hughes. For comprehensive analysis and additional insights, including 10 more exclusive ProTips, visit InvestingPro. The information in this article is based on a press release statement from Baker Hughes.
In other recent news, Baker Hughes, a global energy technology firm, has reported a 20% year-on-year EBITDA growth for the third consecutive quarter, despite a minor revenue shortfall of over $200 million due to project delays. Goldman Sachs has raised its stock target for the company to $52, maintaining a Buy rating, while RBC Capital Markets has also upgraded its target to $49.00, holding an Outperform rating. Both firms recognized the potential in Baker Hughes’ diverse portfolio and robust revenue growth.
Baker Hughes also announced a significant expansion of its operations in Namibia with the inauguration of a new liquid mud plant at Walvis Bay Port, currently the country’s largest. The company secured substantial contracts with Brazilian state-run oil company Petrobras to supply flexible pipe systems for Brazil’s pre-salt oilfields. These recent developments highlight Baker Hughes’ strategic growth and its ability to navigate challenges in the energy market.
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