Street Calls of the Week
HOUSTON - Baker Hughes (NASDAQ:BKR), the energy technology company with a market capitalization of $48 billion and a GREAT financial health score according to InvestingPro, has secured a contract from Bechtel Energy Inc. to provide liquefaction equipment for Sempra Infrastructure’s Port Arthur LNG Phase 2 project in Jefferson County, Texas, according to a press release statement.
The energy technology company, which has generated $27.6 billion in revenue over the last twelve months, will supply four Frame 7 gas turbines paired with eight centrifugal compressors across two LNG trains, supporting a nameplate capacity of approximately 13 million tonnes per annum (MTPA). The scope also includes two electric motor-driven compressors for the plant’s booster services.
This award builds upon Baker Hughes’ previous work on Phase 1 of the project, continuing the companies’ collaboration on expanding LNG export infrastructure in the U.S. Gulf Coast region. The company’s strong market position is reflected in its impressive 20.7% year-to-date return, with InvestingPro data showing eight additional growth and value indicators available to subscribers.
"Baker Hughes’ technology solutions play a key role in our ability to enable the expansion of LNG capacity at Port Arthur LNG," said Bhupesh Thakkar, general manager for Bechtel’s LNG business.
Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes, noted that the company’s gas technology solutions for the Port Arthur LNG project are designed to provide optimum production levels, operational flexibility, high availability, and a lower emission footprint.
The Frame 7 gas turbine is known for its energy efficiency, reliability, and maintainability, according to the company.
The expansion project aims to address ongoing global demand growth for liquefied natural gas by increasing export capacity from the United States. With a solid gross profit margin of 21.4% and strong operational efficiency, Baker Hughes appears well-positioned to execute this project. Investors can access a comprehensive analysis of Baker Hughes’ financial health and growth prospects through the detailed Pro Research Report available on InvestingPro.
In other recent news, Baker Hughes has secured a substantial contract from Petrobras to supply up to 50 subsea tree systems and related equipment for offshore oil and gas fields in Brazil. This agreement involves manufacturing subsea systems and providing topside control cabinets for monitoring from floating production vessels. Additionally, Baker Hughes announced a multi-year agreement with Petrobras to extend the deployment of its Blue Marlin and Blue Orca stimulation vessels in Brazil’s offshore fields, delivering chemical treatments to stimulate well production.
In another development, Baker Hughes has received an order from Bechtel Energy Inc. to supply main liquefaction equipment for Train 4 of NextDecade’s Rio Grande LNG facility in Texas. This equipment will support an additional liquefied natural gas production capacity of approximately 6 million tonnes per annum. Furthermore, Baker Hughes has signed a 90-month service agreement with bp for the Tangguh LNG plant in Indonesia, covering spare parts and engineering support for critical turbomachinery.
On the analyst front, Stifel has reiterated a Buy rating on Baker Hughes stock, highlighting the company’s improved margin profile despite challenges in the U.S. land market.
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