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HOUSTON - Baker Hughes (NASDAQ: BKR), a global energy technology firm with annual revenues of $27.8 billion, has secured a significant multi-year contract with Brazilian state-run oil company Petrobras to supply advanced completions technology for multiple deepwater fields, the company announced Thursday. This contract, stemming from a competitive tender, is poised to enhance Petrobras’ offshore production efficiency and safety. According to InvestingPro data, Baker Hughes maintains a perfect Piotroski Score of 9, indicating exceptional financial strength and operational efficiency.
The deal will harness Baker Hughes’ suite of intelligent completions technologies, which have been customized to meet the specific requirements of Petrobras’ offshore operations. These technologies are designed to enable remote operations and provide multizone control, which helps to minimize water and gas breakthroughs and mitigate the risk of expensive interventions. The company’s strong execution capability is reflected in its healthy gross profit margin of 21.25% and return on invested capital of 12%.
A centerpiece of the technology package is the SureCONTROL Premium interval control valve (ICV), which offers improved reliability in the high flow rates characteristic of Petrobras’ offshore fields. This system allows for real-time remote adjustments to evolving well conditions across multiple zones.
Baker Hughes will also supply Petrobras with a variety of other technologies, including downhole gauges, monitoring systems, chemical injection systems, flow control systems, barrier valves, gas lift systems, subsurface safety valves, packers, screens, and gravel pack systems.
The collaboration between Baker Hughes and Petrobras is not new; Baker Hughes has a longstanding history of contributing to the development of Brazil’s offshore oil and gas sectors. The company’s localization strategy has not only supported Brazil’s energy supply chain but has also provided economic benefits to the country.
Deliveries of the new technologies are scheduled to commence in late 2025. Baker Hughes, with operations in over 120 countries, continues to focus on advancing energy technology to make it safer, cleaner, and more efficient.
This contract announcement is based on a press release statement from Baker Hughes.
In other recent news, Baker Hughes has announced a significant deal to provide its NovaLT™ gas turbine technology to TURBINE-X Energy Inc. for North American data centers, addressing the rising demand for reliable power solutions driven by generative AI. Additionally, Baker Hughes and NextDecade Corporation have entered a framework agreement to utilize Baker Hughes’ gas turbine and refrigerant compressor technology at the Rio Grande LNG Facility, aiming to enhance efficiency and reliability. In leadership developments, Ahmed Moghal has been appointed as the new Chief Financial Officer of Baker Hughes, succeeding Nancy Buese, as the company focuses on profitable growth and margin expansion. Benchmark analysts have maintained a Buy rating on Baker Hughes, with a price target of $57, after observing increased business momentum, particularly in the Industrial Energy Technology segment. JPMorgan has also reaffirmed an Overweight rating with a $52 price target, citing strong fourth-quarter performance and optimistic goals for 2025. The company aims for a 12% year-over-year increase in IET EBITDA and a 120 basis points improvement in margins, with a focus on strategic initiatives in Gas Tech and digital solutions. These developments underscore Baker Hughes’ strategic positioning in the energy sector and its ongoing efforts to innovate and meet global energy demands.
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