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HOUSTON - Baker Hughes (NASDAQ: BKR), a global energy technology firm with a market capitalization of $44.7 billion and annual revenue of $27.8 billion, has secured a multi-year contract with Dubai Petroleum Establishment (DPE) to provide integrated coiled-tubing drilling services for the Margham Gas storage project in Dubai. The announcement was made on Wednesday, signaling a boost for Dubai’s energy stability. According to InvestingPro data, Baker Hughes maintains a perfect Piotroski Score of 9, indicating exceptional financial strength and operational efficiency.
The contract entails the use of Baker Hughes’ CoilTrak™ coiled-tubing bottomhole assembly system, which is designed to enhance reservoir connectivity through efficient slim-hole multilateral drilling. This technology is expected to play a pivotal role in the project, which aims to bolster the reliability of Dubai’s power supply by facilitating the switch between natural gas and solar power. The company’s strong execution capabilities are reflected in its healthy 21.25% gross profit margin and robust return on equity of 18%.
Baker Hughes’ involvement with the Margham Gas project extends beyond the coiled-tubing drilling services. The company is also set to supply Integrated Compressor Line (ICL) units for gas storage, injection, and export within the project, contributing to a power system that promises reduced emissions.
Amerino Gatti, executive vice president of Oilfield Services & Equipment at Baker Hughes, stated, "Baker Hughes has built a reputation as a leader in coiled-tubing drilling and mature assets solutions, and we bring a track record of success across the region to this important project. Our integrated solutions approach combines industry-leading technology and expertise across the energy value chain to help DPE scale-up and develop reliable, secure and lower-carbon power solutions for their country."
The Margham Gas project draws upon the mature Margham field and is part of a broader effort by Dubai to enhance its low-carbon energy capabilities. The collaboration with Baker Hughes is expected to leverage the company’s expertise in under-balanced drilling and coiled-tubing drilling to maximize the effectiveness of underground gas storage.
Baker Hughes operates in over 120 countries and is known for its commitment to advancing safer, cleaner, and more efficient energy solutions. This contract with DPE is a testament to the company’s ongoing efforts to support the energy sector’s transition towards more sustainable practices. With a 40.8% stock price return over the past year and consistent dividend payments for 39 consecutive years, Baker Hughes demonstrates both growth potential and stability. For detailed analysis and additional insights, including 8 more exclusive ProTips, visit InvestingPro to access the comprehensive Pro Research Report.
The information in this article is based on a press release statement.
In other recent news, Baker Hughes has secured a significant multi-year contract with Petrobras to supply advanced completions technology for multiple deepwater fields. This contract is expected to enhance Petrobras’ offshore production efficiency and safety, with deliveries of the new technologies scheduled to commence in late 2025. In another development, Baker Hughes announced a deal to provide NovaLT™ gas turbine technology to TURBINE-X Energy Inc., aiming to enhance power supply capabilities for North American data centers. This aligns with the growing demand for reliable and flexible power solutions in the data center market.
Additionally, Baker Hughes and NextDecade Corporation have entered a framework agreement for the use of Baker Hughes’ gas turbine and refrigerant compressor technology at the Rio Grande LNG Facility. This partnership is set to support the facility’s expansion and enhance its operational efficiency. In leadership news, Baker Hughes appointed Ahmed Moghal as its new Chief Financial Officer, with a focus on profitable growth and margin expansion. Benchmark analysts have maintained a Buy rating on Baker Hughes shares, with a price target of $57, citing a robust pipeline of LNG equipment and growth in the Industrial Energy Technology segment as key drivers.
These recent developments highlight Baker Hughes’ ongoing efforts to innovate and adapt within the evolving energy landscape.
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