Street Calls of the Week
HOUSTON/LONDON - Baker Hughes (NASDAQ:BKR), the $49.8 billion energy technology company whose stock has surged over 42% in the past year, has secured a significant contract from Petrobras to supply up to 50 subsea tree systems and associated equipment for offshore oil and gas fields in Brazil, the energy technology company announced Monday. According to InvestingPro data, Baker Hughes maintains a "GREAT" financial health score, positioning it well for major contracts like this one.
The agreement, awarded through an open tender, includes manufacturing pre-salt standard subsea trees, subsea distribution units, in-line tees and vertical connection systems. Baker Hughes will also provide topside control cabinets to monitor and control subsea equipment from floating production storage and offloading vessels. With annual revenues of $27.6 billion and healthy profit margins, Baker Hughes demonstrates the financial strength needed for such large-scale projects.
The systems will be deployed across multiple Brazilian offshore fields, including established areas such as Albacora, Jubarte and Barracuda-Caratinga, as well as more recent pre-salt developments like the Mero and Buzios fields.
"Baker Hughes has a history of innovation and operational excellence throughout our decades of collaboration with Petrobras," said Amerino Gatti, executive vice president of Oilfield Services & Equipment at Baker Hughes.
The project is scheduled to begin procurement and manufacturing in the third quarter of 2025. According to the press release, Baker Hughes’ localization strategy in Brazil contributes to the nation’s economy, reflecting the company’s long-term involvement in developing Brazil’s offshore oil and gas industry.
The subsea equipment is designed to enable safe and efficient production on the seafloor, with systems for both enhancing recovery in established fields and optimizing production in new wells.
Baker Hughes, which operates in over 120 countries, provides energy technology solutions to energy and industrial customers worldwide. Trading near its 52-week high, the company’s strong market position is reflected in its performance metrics. For deeper insights into Baker Hughes’s financial health and growth potential, including exclusive ProTips and comprehensive analysis, visit InvestingPro, where you’ll find detailed research reports and expert commentary on over 1,400 US stocks.
In other recent news, Baker Hughes has announced a multi-year agreement with Petrobras to extend the use of its Blue Marlin and Blue Orca stimulation vessels in Brazil’s offshore oil and gas fields. This contract will enable the delivery of chemical treatments to stimulate wells and support well construction operations. Additionally, Baker Hughes received an order from Bechtel Energy Inc. to supply liquefaction equipment for Train 4 of NextDecade’s Rio Grande LNG facility in Texas, which will support an additional liquefied natural gas production capacity of approximately 6 million tonnes per annum.
In another development, Baker Hughes signed a 90-month service agreement with bp for the Tangguh LNG plant in Indonesia. This agreement includes spare parts, repair services, and field service engineering support for critical turbomachinery at the facility. On the financial front, Stifel has reiterated a Buy rating on Baker Hughes stock, praising the company’s improved margin profile despite challenges in the U.S. land market. Similarly, Melius Research initiated coverage with a Buy rating and set a price target of $60, emphasizing Baker Hughes’ transformation into a global energy and industrial technology company. These developments highlight the company’s ongoing strategic initiatives and market presence.
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